Citizens Bancshares (Citizens Bancshares) Beneish M-Score : 0.00 (As of Apr. 25, 2024)

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What is Citizens Bancshares Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

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.

The historical rank and industry rank for Citizens Bancshares's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Citizens Bancshares was 0.00. The lowest was 0.00. And the median was 0.00.

Citizens Bancshares 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 Citizens Bancshares for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1

0.528 * 1

0.404 * 1.0209

0.892 * 0.9696

0.115 * 1.1855

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0536

4.679 * 0.001841

0.327 * 1.9146

-2.78

* 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 (Sep16) TTM:

Last Year (Sep15) TTM:

Total Receivables was $0.00 Mil.
Revenue was 4.23 + 4.193 + 3.837 + 4.207 = $16.47 Mil.
Gross Profit was 4.23 + 4.193 + 3.837 + 4.207 = $16.47 Mil.
Total Current Assets was $38.54 Mil.
Total Assets was $406.75 Mil.
Property, Plant and Equipment(Net PPE) was $6.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.29 Mil.
Selling, General, & Admin. Expense(SGA) was $8.99 Mil.
Total Current Liabilities was $5.01 Mil.
Long-Term Debt & Capital Lease Obligation was $5.22 Mil.
Net Income was 0.547 + 0.749 + 0.358 + 0.623 = $2.28 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.795 + 1.392 + 0.768 + 0.163 = $1.53 Mil.

Total Receivables was $0.00 Mil.
Revenue was 4.264 + 4.044 + 4.154 + 4.521 = $16.98 Mil.
Gross Profit was 4.264 + 4.044 + 4.154 + 4.521 = $16.98 Mil.
Total Current Assets was $42.89 Mil.
Total Assets was $381.01 Mil.
Property, Plant and Equipment(Net PPE) was $6.24 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.52 Mil.
Selling, General, & Admin. Expense(SGA) was $8.80 Mil.
Total Current Liabilities was $4.76 Mil.
Long-Term Debt & Capital Lease Obligation was $0.24 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)
	=	(0 / 16.467)	/	(0 / 16.983)
	=	0	/	0
	=	1

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)
	=	(16.983 / 16.983)	/	(16.467 / 16.467)
	=	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 - (38.535 + 6.521) / 406.754)	/	(1 - (42.891 + 6.243) / 381.01)
	=	0.88923	/	0.871043
	=	1.0209

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
	=	16.467	/	16.983
	=	0.9696

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))
	=	(1.515 / (1.515 + 6.243))	/	(1.286 / (1.286 + 6.521))
	=	0.195282	/	0.164724
	=	1.1855

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)
	=	(8.994 / 16.467)	/	(8.804 / 16.983)
	=	0.546183	/	0.518401
	=	1.0536

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)
	=	((5.22 + 5.006) / 406.754)	/	((0.24 + 4.763) / 381.01)
	=	0.025141	/	0.013131
	=	1.9146

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
	=	(2.277 - 0	-	1.528)	/	406.754
	=	0.001841

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.

Citizens Bancshares has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

Citizens Bancshares Beneish M-Score Related Terms

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Citizens Bancshares (Citizens Bancshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Citizens Bancshares Corp (OTCPK:CZBS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

230 Peachtree Street NW, Suite 2700, Atlanta, GA, USA, 30303

Website

https://www.ctbconnect.com

Citizens Bancshares Corp is a bank holding company. The company provides a range of commercial banking to individual and corporate customers through its subsidiary. The bank offers a range of commercial and consumer deposit accounts, including non-interest-bearing checking accounts, individual retirement accounts, time certificates of deposit and regular savings accounts. Citizens Bancshares engages in a range of lending activities, including consumer/installment loans, mortgage loans, home equity lines of credit, and construction loans and commercial loans.

Executives

Cynthia N Day

director, officer: President & CEO

75 PIEDMONT AVE, ATLANTA GA 30303