Northeast Indiana Bancorp (Northeast Indiana Bancorp) Beneish M-Score : -2.39 (As of May. 11, 2024)

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What is Northeast Indiana Bancorp 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.

Good Sign:

Beneish M-Score -2.39 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NIDB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.59 Med: -2.42 Max: -1.99
Current: -2.39

During the past 13 years, the highest Beneish M-Score of Northeast Indiana Bancorp was -1.99. The lowest was -2.59. And the median was -2.42.

Northeast Indiana 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 Northeast Indiana Bancorp 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 * 1.2922

0.528 * 1

0.404 * 1.0015

0.892 * 0.9472

0.115 * 1.1656

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1899

4.679 * -0.00382

0.327 * 1.3192

-2.39

* 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 $2.36 Mil.
Revenue was $17.55 Mil.
Gross Profit was $17.55 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $498.68 Mil.
Property, Plant and Equipment(Net PPE) was $7.37 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.22 Mil.
Selling, General, & Admin. Expense(SGA) was $6.93 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $47.25 Mil.
Net Income was $4.26 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $6.17 Mil.

Total Receivables was $1.92 Mil.
Revenue was $18.53 Mil.
Gross Profit was $18.53 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $445.53 Mil.
Property, Plant and Equipment(Net PPE) was $7.26 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.45 Mil.
Selling, General, & Admin. Expense(SGA) was $6.15 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $32.00 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)
	=	(2.355 / 17.553)	/	(1.924 / 18.531)
	=	0.134165	/	0.103826
	=	1.2922

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)
	=	(18.531 / 18.531)	/	(17.553 / 17.553)
	=	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 - (0 + 7.366) / 498.684)	/	(1 - (0 + 7.255) / 445.528)
	=	0.985229	/	0.983716
	=	1.0015

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
	=	17.553	/	18.531
	=	0.9472

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))
	=	(1.445 / (1.445 + 7.255))	/	(1.224 / (1.224 + 7.366))
	=	0.166092	/	0.142491
	=	1.1656

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)
	=	(6.934 / 17.553)	/	(6.152 / 18.531)
	=	0.395032	/	0.331984
	=	1.1899

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)
	=	((47.25 + 0) / 498.684)	/	((32 + 0) / 445.528)
	=	0.094749	/	0.071825
	=	1.3192

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
	=	(4.26 - 0	-	6.165)	/	498.684
	=	-0.00382

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.

Northeast Indiana Bancorp has a M-score of -2.39 suggests that the company is unlikely to be a manipulator.

Northeast Indiana Bancorp Beneish M-Score Related Terms

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Northeast Indiana Bancorp (Northeast Indiana Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Northeast Indiana Bancorp Inc (OTCPK:NIDB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

648 North Jefferson Street, P.O. Box 70, Huntington, IN, USA, 46750

Website

https://www.firstfedindiana.bank

Northeast Indiana Bancorp Inc is a part of the financial services domain. It acts as the holding company for First Federal Savings Bank, which provides commercial and residential real estate loans in the United States. The bank functions through the Residential Mortgage, Commercial Mortgage, Construction and land development, Commercial and Industrial, and Consumer Mortgage segments. The Commercial Mortgage segment accounts for a share of the company revenues. It provides services such as checking, commercial loans, credit cards, merchant services and cash management.

Executives

Dan L Stephan	director
Randy J Sizemore	officer: Senior Vice President	P O BOX 70, HUNTINGTON IN 46750
Michael S Zahn	director, officer: Senior Vice President	708 APPLEBY COURT, HUNTINGTON IN 46750
Thomas P Frantz	officer: Senior Vice President	648 N JEFFERSON STREET, HUNTINGTON IN 46750
Randall C Rider	director
J David Carnes	director
Dee Ann Hammel	officer: Senior Vice President	3102 ALSTON CT, HUNTINGTON IN 46750
Stephen E Zahn	director, 10 percent owner, officer: Chairman, President & CEO	648 NORTH JEFFERSON STREET, HUNTINGTON IN 46750
William A Zimmer	director