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TC Bancshares (TC Bancshares) Beneish M-Score : -5.14 (As of Jun. 24, 2024)


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What is TC 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.

Good Sign:

Beneish M-Score -5.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TCBC' s Beneish M-Score Range Over the Past 10 Years
Min: -5.14   Med: -2.27   Max: -2.17
Current: -5.14

During the past 5 years, the highest Beneish M-Score of TC Bancshares was -2.17. The lowest was -5.14. And the median was -2.27.


TC 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 TC Bancshares 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 * 0+0.528 * 1+0.404 * 0.9998+0.892 * 0.9147+0.115 * 1.1293
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1257+4.679 * -0.001656-0.327 * 6.0561
=-5.14

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $0.00 Mil.
Revenue was 3.628 + 3.599 + 3.618 + 3.886 = $14.73 Mil.
Gross Profit was 3.628 + 3.599 + 3.618 + 3.886 = $14.73 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $474.68 Mil.
Property, Plant and Equipment(Net PPE) was $6.61 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.67 Mil.
Selling, General, & Admin. Expense(SGA) was $8.53 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $13.07 Mil.
Net Income was 0.022 + -0.118 + -0.095 + 0.147 = $-0.04 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.372 + 0.519 + 0.256 + -1.405 = $0.74 Mil.
Total Receivables was $5.89 Mil.
Revenue was 3.937 + 3.99 + 4.21 + 3.968 = $16.11 Mil.
Gross Profit was 3.937 + 3.99 + 4.21 + 3.968 = $16.11 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $429.74 Mil.
Property, Plant and Equipment(Net PPE) was $5.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.68 Mil.
Selling, General, & Admin. Expense(SGA) was $8.28 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1.95 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 / 14.731) / (5.887 / 16.105)
=0 / 0.365539
=0

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)
=(16.105 / 16.105) / (14.731 / 14.731)
=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 + 6.61) / 474.676) / (1 - (0 + 5.898) / 429.742)
=0.986075 / 0.986275
=0.9998

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
=14.731 / 16.105
=0.9147

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))
=(0.682 / (0.682 + 5.898)) / (0.668 / (0.668 + 6.61))
=0.103647 / 0.091783
=1.1293

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)
=(8.53 / 14.731) / (8.284 / 16.105)
=0.579051 / 0.514374
=1.1257

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)
=((13.071 + 0) / 474.676) / ((1.954 + 0) / 429.742)
=0.027537 / 0.004547
=6.0561

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
=(-0.044 - 0 - 0.742) / 474.676
=-0.001656

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.

TC Bancshares has a M-score of -5.14 suggests that the company is unlikely to be a manipulator.


TC Bancshares Beneish M-Score Related Terms

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TC Bancshares (TC Bancshares) Business Description

Traded in Other Exchanges
Address
131 South Dawson Street, P.O. Box 1197, Thomasville, GA, USA, 31792
TC Bancshares Inc is a federally chartered savings bank. Its business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one-to four-family residential real estate loans, commercial and multi-family residential real estate loans, commercial and industrial loans, construction and land development loans, and consumer loans.
Executives
Joshua Travis Bryant director 131 SOUTH DAWSON STREET, THOMASVILLE GA 31792
Stephanie B Tillman director 1919 FLOWERS CIRCLE, THOMASVILLE GA 31757
Peter Desantis director 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799
Jefferson Johnson director 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799
Fortson Rumble director 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799
Scott Charles Mclean officer: EVP-CHIEF FINANCIAL OFFICER 101 WEINGARTEN PLACE, CARY NC 27519
Michael Sherman Penney officer: EVP-CHIEF CREDIT OFFICER 131 SOUTH DAWSON STREET, THOMASVILLE GA 31799
Charles Dixon director 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799
George Matthew Brown director 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799
Nathan Higdon officer: See Remarks 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799
Linda K. Palmer officer: See Remarks 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799
Fred E. Murphy director 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799
Gregory Eiford director, officer: See Remarks 131 SOUTH DAWSON STREET, PO BOX 1197, THOMASVILLE GA 31799