Polonia Bancorp (Polonia Bancorp) Beneish M-Score : 0.00 (As of May. 25, 2024)

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What is Polonia 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.

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

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

Polonia 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 Polonia 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 * 0.9732

0.528 * 1

0.404 * 1.0001

0.892 * 0.8752

0.115 * 0.9048

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9392

4.679 * -0.015195

0.327 * 1.0036

-2.69

* 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 (Dec15) TTM:

Last Year (Dec14) TTM:

Total Receivables was $0.67 Mil.
Revenue was 1.735 + 3.479 + 2.865 + 3.111 = $11.19 Mil.
Gross Profit was 1.735 + 3.479 + 2.865 + 3.111 = $11.19 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $291.61 Mil.
Property, Plant and Equipment(Net PPE) was $4.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.12 Mil.
Selling, General, & Admin. Expense(SGA) was $6.52 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $56.00 Mil.
Net Income was -0.47 + 0.305 + -0.111 + 0.138 = $-0.14 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 2.508 + 5.739 + -3.428 + -0.526 = $4.29 Mil.

Total Receivables was $0.79 Mil.
Revenue was 3.258 + 3.595 + 3.162 + 2.771 = $12.79 Mil.
Gross Profit was 3.258 + 3.595 + 3.162 + 2.771 = $12.79 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $308.35 Mil.
Property, Plant and Equipment(Net PPE) was $4.26 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.05 Mil.
Selling, General, & Admin. Expense(SGA) was $7.93 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $59.00 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)
	=	(0.672 / 11.19)	/	(0.789 / 12.786)
	=	0.060054	/	0.061708
	=	0.9732

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)
	=	(12.786 / 12.786)	/	(11.19 / 11.19)
	=	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 + 3.998) / 291.611)	/	(1 - (0 + 4.258) / 308.35)
	=	0.98629	/	0.986191
	=	1.0001

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
	=	11.19	/	12.786
	=	0.8752

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))
	=	(1.053 / (1.053 + 4.258))	/	(1.122 / (1.122 + 3.998))
	=	0.198268	/	0.219141
	=	0.9048

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)
	=	(6.519 / 11.19)	/	(7.931 / 12.786)
	=	0.582574	/	0.620288
	=	0.9392

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)
	=	((56 + 0) / 291.611)	/	((59 + 0) / 308.35)
	=	0.192037	/	0.191341
	=	1.0036

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
	=	(-0.138 - 0	-	4.293)	/	291.611
	=	-0.015195

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.

Polonia Bancorp has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.

Polonia Bancorp Beneish M-Score Related Terms

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Polonia Bancorp (Polonia Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Polonia Bancorp Inc (OTCBB:PBCP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.poloniabank.com

Polonia Bancorp Inc is a Maryland corporation that was incorporated in August 2011. The Company is headquartered in Huntingdon Valley and operates as a community-oriented financial institution dedicated to serving the financial services needs of consumers and businesses within its market areas. The Bank is engaged mainly in the business of attracting deposits from the general public and using using such funds to originate loans. Polonia Bank also maintains an investment portfolio. Polonia Bank's primary federal regulator is the Office of the Comptroller of the Currency (OCC). Its loan portfolio consists of one- to four-family residential real estate loans, multi-family and nonresidential real estate loans, home equity loans, commercial loans and consumer loans. Currently, it offers only fixed-rate mortgage products. The one- to four-family residential real estate loans are normally originated with up to 30-year terms, such loans typically remain outstanding for substantially shorter periods because borrowers often prepay their loans in full upon sale of the property pledged as security or upon refinancing the original loan. The multi-family and nonresidential real estate loans are generally secured by apartment buildings, small office buildings and owner-occupied properties. It offers loans with adjustable interest rates tied to a market index in its market area. It offers consumer loans in the form of loans secured by savings accounts or time deposits. The Company has the legal authority to invest in various types of liquid assets, including U.S. Treasury obligations, securities of various federal agencies and municipal governments, corporate securities, mortgage-backed securities, deposits at the FHLB of Pittsburgh and time deposits of federally insured institutions. The Company faces competition for the attraction of deposits and origination of loans. The Company's direct competition for deposits has historically come from the several financial institutions operating in its market areas and, to a lesser extent, from other financial service companies such as brokerage firms, credit unions and insurance companies. The Company is subject to regulation, supervision and examination by the Federal Reserve Board and the OCC, its main federal regulator, and by the FDIC, as insurer of its deposits.

Executives

Kevin J Gallagher	officer: Chief Lending Officer of Sub	3993 HUNTINGDON PIKE, 3RD FLOOR HUNTINGDON VALLEY PA 19006
Joseph Svetik	director, officer: President and CEO	200 PALMER STREET, STROUDSBURG PA 18360