WCFB (WCF Bancorp) Beneish M-Score : 0.00 (As of Dec. 13, 2024)

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What is WCF 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 WCF Bancorp's Beneish M-Score or its related term are showing as below:

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

WCF 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 WCF 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 * 1.0242

0.528 * 1

0.404 * 1.0026

0.892 * 0.9357

0.115 * 1.0928

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0952

4.679 * -0.003276

0.327 * 1.6501

-2.75

* 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 (Dec18) TTM:

Last Year (Dec17) TTM:

Total Receivables was $0.46 Mil.
Revenue was $3.10 Mil.
Gross Profit was $3.10 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $137.36 Mil.
Property, Plant and Equipment(Net PPE) was $3.59 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.71 Mil.
Selling, General, & Admin. Expense(SGA) was $1.65 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $24.00 Mil.
Net Income was $0.23 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $0.68 Mil.

Total Receivables was $0.48 Mil.
Revenue was $3.31 Mil.
Gross Profit was $3.31 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $132.22 Mil.
Property, Plant and Equipment(Net PPE) was $3.79 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.83 Mil.
Selling, General, & Admin. Expense(SGA) was $1.61 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $14.00 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)
	=	(0.46 / 3.101)	/	(0.48 / 3.314)
	=	0.148339	/	0.14484
	=	1.0242

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)
	=	(3.314 / 3.314)	/	(3.101 / 3.101)
	=	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 + 3.586) / 137.364)	/	(1 - (0 + 3.791) / 132.221)
	=	0.973894	/	0.971328
	=	1.0026

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
	=	3.101	/	3.314
	=	0.9357

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))
	=	(0.832 / (0.832 + 3.791))	/	(0.707 / (0.707 + 3.586))
	=	0.17997	/	0.164687
	=	1.0928

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)
	=	(1.651 / 3.101)	/	(1.611 / 3.314)
	=	0.532409	/	0.486119
	=	1.0952

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)
	=	((24 + 0) / 137.364)	/	((14 + 0) / 132.221)
	=	0.174718	/	0.105883
	=	1.6501

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
	=	(0.226 - 0	-	0.676)	/	137.364
	=	-0.003276

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.

WCF Bancorp has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.

WCF Bancorp Beneish M-Score Related Terms

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WCF Bancorp Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

N/A

Address

401 Fair Meadow Drive, P.O. Box 638, Webster City, IA, USA, 50595

Website

https://www.wcfbank.com

WCF Bancorp Inc is a bank holding company. It is engaged in the ownership and operation of a bank. The bank's business activities involve accepting deposits from individual, corporate, and public clients and investing those deposits in real estate, agricultural, commercial, and personal loans.

Executives

Michelle Zahn	officer: Chief Financial Officer	401 FAIR MEADOW DRIVE, WEBSTER CITY IA 50595
Bradley Mickelson	director	401 FAIR MEADOW DRIVE, WEBSTER CITY IA 50595
Paul L Moen	officer: Chief Financial Officer	401 FAIR MEADOW DRIVE, WEBSTER CITY IA 50595
Michael R Segner	director, officer: President and CEO	401 FAIR MEADOW DRIVE, WEBSTER CITY IA 50595
Thomas J Hromatka	director	C/O NORTH CENTRAL BANCSHARES INC, 825 CENTRAL AVENUE, FORT DODGE IA 50501
Kevin Eason	officer: EVP and CCO	401 FAIR MEADOW DRIVE, WEBSTER CITY IA 50595
C Thomas Chalstrom	director	C/O NORTH CENTRAL BANCSHARES INC, 825 CENTRAL AVE PO BOX 1237, FORT DODGE IA 50501
Kyle R Swon	director, officer: SVP	220 DES MOINES ST, PO BOX 638, WEBSTER CITY IA 50595
Stephen L Mourlam	director, officer: President and CEO	220 DES MOINES ST, PO BOX 638, WEBSTER CITY IA 50595
Leo Moriarity	director	401 FAIR MEADOW DRIVE, WEBSTER CITY IA 50595
Harold J Pursley	director, other: Chairman	401 FAIR MEADOW DRIVE, WEBSTER CITY IA 50595
Kasie L Doering	officer: CFO	401 FAIR MEADOW DRIVE, WEBSTER CITY IA 50595