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Randolph Bancorp (NAS:RNDB) Beneish M-Score

: -2.39 (As of Today)
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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 Randolph Bancorp's Beneish M-Score or its related term are showing as below:

RNDB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05   Med: -2.26   Max: -1.75
Current: -2.39

During the past 8 years, the highest Beneish M-Score of Randolph Bancorp was -1.75. The lowest was -3.05. And the median was -2.26.


Randolph 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 Randolph 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 * 2.1017+0.528 * 1+0.404 * 1.0355+0.892 * 0.5308+0.115 * 1.5494
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3287+4.679 * -0.1374-0.327 * 0.6327
=-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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $1.70 Mil.
Revenue was 7.836 + 7.459 + 10.229 + 14.125 = $39.65 Mil.
Gross Profit was 7.836 + 7.459 + 10.229 + 14.125 = $39.65 Mil.
Total Current Assets was $63.73 Mil.
Total Assets was $774.75 Mil.
Property, Plant and Equipment(Net PPE) was $7.67 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.82 Mil.
Selling, General, & Admin. Expense(SGA) was $24.28 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $32.95 Mil.
Net Income was 0.248 + -0.235 + 0.786 + 3.126 = $3.93 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 15.937 + 18.777 + 67.847 + 7.844 = $110.41 Mil.
Total Receivables was $1.52 Mil.
Revenue was 12.015 + 17.514 + 20.627 + 24.543 = $74.70 Mil.
Gross Profit was 12.015 + 17.514 + 20.627 + 24.543 = $74.70 Mil.
Total Current Assets was $86.61 Mil.
Total Assets was $744.14 Mil.
Property, Plant and Equipment(Net PPE) was $5.12 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.44 Mil.
Selling, General, & Admin. Expense(SGA) was $34.42 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $50.02 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)
=(1.699 / 39.649) / (1.523 / 74.699)
=0.04285102 / 0.02038849
=2.1017

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)
=(74.699 / 74.699) / (39.649 / 39.649)
=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 - (63.732 + 7.669) / 774.753) / (1 - (86.611 + 5.115) / 744.142)
=0.90784031 / 0.87673589
=1.0355

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
=39.649 / 74.699
=0.5308

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))
=(5.437 / (5.437 + 5.115)) / (3.821 / (3.821 + 7.669))
=0.51525777 / 0.33255004
=1.5494

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)
=(24.276 / 39.649) / (34.421 / 74.699)
=0.61227269 / 0.46079599
=1.3287

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)
=((32.946 + 0) / 774.753) / ((50.016 + 0) / 744.142)
=0.04252452 / 0.06721298
=0.6327

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
=(3.925 - 0 - 110.405) / 774.753
=-0.1374

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.

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


Randolph Bancorp Beneish M-Score Related Terms

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Randolph Bancorp (NAS:RNDB) Business Description

Randolph Bancorp logo
Traded in Other Exchanges
N/A
Address
2 Batterymarch Park, Suite 301, Quincy, MA, USA, 02169
Randolph Bancorp Inc is a bank holding company of Envision Bank. The company is engaged in providing financial services to individuals, families, and small to mid-size businesses. The business of the company includes accepting deposits from the public and investing those deposits, commercial real estate loans, construction loans, investment securities, and consumer loans. The firm also offers deposit accounts, certificates of deposit, and money market accounts. The company has two reporting segments; Envision Bank, which is the key revenue generating segment; and Envision Mortgage. Envision Mortgage consists primarily of gains on loan origination and sales activities, loan servicing income and interest income on loans held for sale and residential construction loans.
Executives
Martin S. Friedman 10 percent owner 7901 JONES BRANCH DR. SUITE 210, MCLEAN VA 22102
Evelyn Kaupp director C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Ronald K Perry director 320 NORWOOD PARK SOUTH, NORWOOD MA 02062
Pamela C Scott director 151 BRADLEE AVENUE, SWAMPSCOTT MA 01907
William M Parent director, officer: President & CEO C/O GRAIL INVESTMENT CORP., 767 THIRD AVENUE, 21ST FLOOR, NEW YORK NY 10017
Lauren Messmore officer: EVP & CFO 320 NORWOOD PARK SOUTH, NORWOOD MA 02062
Nancy J. Curry officer: SVP/Commercial Lending C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Peter J. Fraser officer: Senior Vice President C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
O'connor John J. Iii director C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
James P Mcdonough director, officer: See Remarks C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Paul R Donovan director CHAIRMAN'S VIEW, 300 GRANITE ST., SUITE 406, BRAINTREE MA 02184
Phillips Richard A. Sr. director C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Martie M. Dwyer officer: See Remarks C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Michael K Devlin officer: See Remarks C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Donna L. Thaxter officer: See Remarks C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
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