Skyline Bankshares (Skyline Bankshares) Beneish M-Score : -184.79 (As of Apr. 29, 2024)

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What is Skyline Bankshares 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 -184.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SLBK' s Beneish M-Score Range Over the Past 10 Years
Min: -184.79 Med: -2.37 Max: -1.93
Current: -184.79

During the past 9 years, the highest Beneish M-Score of Skyline Bankshares was -1.93. The lowest was -184.79. And the median was -2.37.

Skyline Bankshares 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 Skyline Bankshares 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 * 1.1168

0.528 * 1

0.404 * 1.0311

0.892 * 1.0409

0.115 * 0.9481

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0874

4.679 * -0.001571

0.327 * 558.9158

-184.79

* 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 $3.46 Mil.
Revenue was 10.735 + 10.644 + 10.62 + 10.569 = $42.57 Mil.
Gross Profit was 10.735 + 10.644 + 10.62 + 10.569 = $42.57 Mil.
Total Current Assets was $152.47 Mil.
Total Assets was $1,045.84 Mil.
Property, Plant and Equipment(Net PPE) was $31.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.25 Mil.
Selling, General, & Admin. Expense(SGA) was $18.41 Mil.
Total Current Liabilities was $28.03 Mil.
Long-Term Debt & Capital Lease Obligation was $27.50 Mil.
Net Income was 2.155 + 2.064 + 2.753 + 2.728 = $9.70 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 2.977 + 2.039 + -4.982 + 11.309 = $11.34 Mil.

Total Receivables was $2.98 Mil.
Revenue was 10.855 + 10.536 + 9.883 + 9.62 = $40.89 Mil.
Gross Profit was 10.855 + 10.536 + 9.883 + 9.62 = $40.89 Mil.
Total Current Assets was $168.23 Mil.
Total Assets was $997.73 Mil.
Property, Plant and Equipment(Net PPE) was $31.75 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.17 Mil.
Selling, General, & Admin. Expense(SGA) was $16.26 Mil.
Total Current Liabilities was $0.10 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
	=	(3.463 / 42.568)	/	(2.979 / 40.894)
	=	0.081352	/	0.072847
	=	1.1168

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)
	=	(40.894 / 40.894)	/	(42.568 / 42.568)
	=	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 - (152.471 + 31.183) / 1045.843)	/	(1 - (168.231 + 31.753) / 997.734)
	=	0.824396	/	0.799562
	=	1.0311

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
	=	42.568	/	40.894
	=	1.0409

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))
	=	(2.168 / (2.168 + 31.753))	/	(2.254 / (2.254 + 31.183))
	=	0.063913	/	0.06741
	=	0.9481

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)
	=	(18.409 / 42.568)	/	(16.264 / 40.894)
	=	0.432461	/	0.397711
	=	1.0874

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)
	=	((27.5 + 28.031) / 1045.843)	/	((0 + 0.095) / 997.734)
	=	0.053097	/	9.5E-5
	=	558.9158

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
	=	(9.7 - 0	-	11.343)	/	1045.843
	=	-0.001571

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.

Skyline Bankshares has a M-score of -184.79 suggests that the company is unlikely to be a manipulator.

Skyline Bankshares Beneish M-Score Related Terms

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Skyline Bankshares (Skyline Bankshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Skyline Bankshares Inc (OTCPK:SLBK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

101 Jacksonville Circle, Floyd, VA, USA, 24091

Website

https://www.skylinenationalbank.bank

Skyline Bankshares Inc is a bank holding company. The company's product and service portfolio includes regular savings, demand, NOW, money market deposits, individual retirement accounts, and small denomination certificates of deposit. It also offers a variety of secured loans, including commercial lines of credit, commercial term loans, real estate, construction, home equity, consumer, and other loans.