WCF Bancorp (WCF Bancorp) Beneish M-Score : 0.00 (As of May. 21, 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 (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 banks. The business activities of the bank involve accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in real estate loans secured by one-to-four family residences. The bank also originates consumer loans and non-owner occupied one-to-four family residential real estate loans. Its primary sources of funds are deposits, principal and interest payments on loans and securities and advances. It derives revenue principally from the interest on loans and securities, and from loan origination and servicing fees.

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