Patriot National Bancorp Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Patriot National Bancorp for today is based on a combination of the following eight different indices:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * 1.0625 | + | 0.528 * 1 | + | 0.404 * 0.989 | + | 0.892 * 0.9349 | + | 0.115 * 1.0566 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.2068 | + | 4.679 * 0.005978 | - | 0.327 * 1.5672 |
| = | -2.67 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $7.22 Mil.
Revenue was 9.364 + 7.646 + 8.439 + 8.797 = $34.25 Mil.
Gross Profit was 9.364 + 7.646 + 8.439 + 8.797 = $34.25 Mil.
Total Current Assets was $148.92 Mil.
Total Assets was $1,093.43 Mil.
Property, Plant and Equipment(Net PPE) was $29.88 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.35 Mil.
Selling, General, & Admin. Expense(SGA) was $18.75 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $201.11 Mil.
Net Income was 0.905 + -3.77 + -0.615 + -0.699 = $-4.18 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.167 + -14.344 + 4.008 + -0.212 = $-10.72 Mil.
|
Total Receivables was $7.27 Mil.
Revenue was 10.859 + 9.86 + 8.476 + 7.435 = $36.63 Mil.
Gross Profit was 10.859 + 9.86 + 8.476 + 7.435 = $36.63 Mil.
Total Current Assets was $130.28 Mil.
Total Assets was $1,043.36 Mil.
Property, Plant and Equipment(Net PPE) was $30.64 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.47 Mil.
Selling, General, & Admin. Expense(SGA) was $16.62 Mil.
Total Current Liabilities was $7.25 Mil.
Long-Term Debt & Capital Lease Obligation was $115.19 Mil.
|
1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total Receivables in year t to year t-1.
A large increase in DSR could be indicative of revenue inflation.
| DSRI | = | (Receivables_t / Revenue_t) | / | (Receivables_t-1 / Revenue_t-1) |
| = | (7.219 / 34.246) | / | (7.267 / 36.63) |
| = | 0.210798 | / | 0.198389 |
| | = | 1.0625 |
2. GMI = Gross Margin Index
Measured as the ratio of gross margin in year t-1 to gross margin in year t.
Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.
| GMI | = | GrossMargin_t-1 | / | GrossMargin_t |
| = | (GrossProfit_t-1 / Revenue_t-1) | / | (GrossProfit_t / Revenue_t) |
| = | (36.63 / 36.63) | / | (34.246 / 34.246) |
| = | 1 | / | 1 |
| | = | 1 |
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (148.923 + 29.875) / 1093.425) | / | (1 - (130.28 + 30.641) / 1043.359) |
| = | 0.836479 | / | 0.845766 |
| | = | 0.989 |
4. SGI = Sales Growth Index
Ratio of Revenue in year t to sales in year t-1.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
| SGI | = | Sales_t | / | Sales_t-1 |
| = | Revenue_t | / | Revenue_t-1 |
| = | 34.246 | / | 36.63 |
| | = | 0.9349 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
| DEPI | = | (Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) | / | (Depreciation_t / (Depreciaton_t + PPE_t)) |
| = | (1.47 / (1.47 + 30.641)) | / | (1.353 / (1.353 + 29.875)) |
| = | 0.045779 | / | 0.043327 |
| | = | 1.0566 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.
SGA expenses index > 1 means that the company is becoming less efficient in generate sales.
| SGAI | = | (SGA_t / Sales_t) | / | (SGA_t-1 /Sales_t-1) |
| = | (18.754 / 34.246) | / | (16.622 / 36.63) |
| = | 0.547626 | / | 0.453781 |
| | = | 1.2068 |
7. LVGI = Leverage Index
The ratio of total debt to Total Assets in year t relative to yeat t-1.
An LVGI > 1 indicates an increase in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((201.105 + 0) / 1093.425) | / | ((115.193 + 7.251) / 1043.359) |
| = | 0.183922 | / | 0.117356 |
| | = | 1.5672 |
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
| TATA | = | (IncomefromContinuingOperations_t | - | CashFlowsfromOperations_t) | / | TotalAssets_t |
| = | (NetIncome_t - NonOperatingIncome_t | - | CashFlowsfromOperations_t) | / | TotalAssets_t |
| = | (-4.179 - 0 | - | -10.715) | / | 1093.425 |
| | = | 0.005978 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Patriot National Bancorp has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.
Patriot National Bancorp (Patriot National Bancorp) Business Description
Traded in Other Exchanges
Address
900 Bedford Street, Stamford, CT, USA, 06901
Patriot National Bancorp Inc is the holding company for Patriot Bank NA, that provides consumer and commercial banking services to individuals, small and medium-sized businesses, professionals, and municipalities in Fairfield and New Haven Counties in Connecticut and Westchester County, New York. Its products include checking accounts, savings accounts, money market accounts, time certificates of deposit, and individual retirement accounts. The Bank's lending portfolio is comprised of commercial mortgage and construction loans, commercial loans, home improvement loans, home equity lines of credit, and other personal loans. In addition, the Bank offers bank checks, money orders, automated teller machines, interactive teller machines, online and mobile banking, credit cards, and debit cards.
Executives
| Grace Doherty |
director |
125 THACHER ST., MILTON MA 02186 |
| Thomas E. Slater |
officer: EVP & Chief Credit Officer |
2 DIXON TERRACE, KINNELON NJ 07405 |
| Alfred Jr. Botta |
officer: EVP & Chief Payment Officer |
C/O PATRIOT NATIONAL BANCORP, INC., 900 BEDFORD STREET, STAMFORD CT 06901 |
| David Christopher Lowery |
officer: EVP & Chief Lending Officer |
C/O PATRIOT NATIONAL BANCORP, INC., 900 BEDFORD STREET, STAMFORD CT 06901 |
| Karen Rojeski |
officer: EVP & Chief Credit Officer |
99 PARK AVENUE, NEW YORK NY 10016 |
| Steven Brian Grunblatt |
officer: EVP & Chief Information Office |
C/O PATRIOT NATIONAL BANCORP, INC., 900 BEDFORD STREET, STAMFORD CT 06901 |
| Gregory P. Ho |
other: (1) and (2) |
C/O SPRING MOUNTAIN CAPITAL, LP, 650 MADISON AVENUE, 20TH FLOOR, NEW YORK NY 10022 |
| Smc Holdings I G.p., Llc |
other: (1) and (2) |
C/O SPRING MOUNTAIN CAPITAL, LP, 650 MADISON AVENUE, 20TH FLOOR, NEW YORK NY 10022 |
| Smc Holdings I, Lp |
10 percent owner, other: (1) and (2) |
65 EAST 55TH STREET, 33RD FLOOR, NEW YORK NY 10022 |
| John Steffens |
other: (1) and (2) |
C/O DIGITALBRIDGE GROUP, INC., 750 PARK OF COMMERCE DRIVE SUITE 210, BOCCA RATON FL 33487 |
| Robert Glenn Russell |
officer: President & CEO |
1902 LONG HILL ROAD, MILLINGTON NJ 07946 |
| Frederick Staudmyer |
officer: EVP and Chief HR Officer |
C/O PATRIOT NATIONAL BANCORP, INC., 900 BEDFORD STREET, STAMFORD CT 06901 |
| Brent M Ciurlino |
director |
C/O PATRIOT NATIONAL BANCORP, INC., 900 BEDFORD STREET, STAMFORD CT 06901 |
| David W Christiansen |
officer: EVP, Chief Credit Officer |
900 BEDFORD STREET, STAMFORD CT 06901 |
| Samuel S Davis |
officer: EVP and Chief Credit Officer |
C/O PATRIOT NATIONAL BANCORP, INC., 900 BEDFORD STREET, STAMFORD CT 06901 |
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