BV Financial (BV Financial) Beneish M-Score : -2.22 (As of May. 22, 2024)

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What is BV Financial 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 -2.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BVFL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.33 Med: -2.22 Max: -1.43
Current: -2.22

During the past 8 years, the highest Beneish M-Score of BV Financial was -1.43. The lowest was -2.33. And the median was -2.22.

BV Financial 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 BV Financial 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 * 1.1064

0.528 * 1

0.404 * 1.0013

0.892 * 1.0279

0.115 * 0.9693

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1562

4.679 * -0.003348

0.327 * 0.4478

-2.22

* 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 $3.15 Mil.
Revenue was 8.541 + 9.612 + 9.57 + 9.607 = $37.33 Mil.
Gross Profit was 8.541 + 9.612 + 9.57 + 9.607 = $37.33 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $892.55 Mil.
Property, Plant and Equipment(Net PPE) was $14.47 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.05 Mil.
Selling, General, & Admin. Expense(SGA) was $12.91 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $34.77 Mil.
Net Income was 2.574 + 3.009 + 3.684 + 3.899 = $13.17 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 4.567 + 3.495 + -49.286 + 57.378 = $16.15 Mil.

Total Receivables was $2.77 Mil.
Revenue was 9.007 + 10.807 + 8.39 + 8.112 = $36.32 Mil.
Gross Profit was 9.007 + 10.807 + 8.39 + 8.112 = $36.32 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $857.53 Mil.
Property, Plant and Equipment(Net PPE) was $15.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.05 Mil.
Selling, General, & Admin. Expense(SGA) was $10.86 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $74.59 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)
	=	(3.147 / 37.33)	/	(2.767 / 36.316)
	=	0.084302	/	0.076192
	=	1.1064

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)
	=	(36.316 / 36.316)	/	(37.33 / 37.33)
	=	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 + 14.473) / 892.545)	/	(1 - (0 + 15.007) / 857.525)
	=	0.983785	/	0.9825
	=	1.0013

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
	=	37.33	/	36.316
	=	1.0279

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))
	=	(1.048 / (1.048 + 15.007))	/	(1.045 / (1.045 + 14.473))
	=	0.065276	/	0.067341
	=	0.9693

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)
	=	(12.907 / 37.33)	/	(10.86 / 36.316)
	=	0.345754	/	0.299042
	=	1.1562

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)
	=	((34.767 + 0) / 892.545)	/	((74.592 + 0) / 857.525)
	=	0.038953	/	0.086985
	=	0.4478

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
	=	(13.166 - 0	-	16.154)	/	892.545
	=	-0.003348

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.

BV Financial has a M-score of -2.22 suggests that the company is unlikely to be a manipulator.

BV Financial Beneish M-Score Related Terms

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BV Financial (BV Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » BV Financial Inc (NAS:BVFL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

7114 North Point Road, Baltimore, MD, USA, 21219

Website

https://www.bayvanguard.com

BV Financial Inc is a federally-chartered savings and loan holding company engaged in offering traditional financial services to consumers and businesses. It offers savings, interest checking, money market, personal and business checking, non-interest checking, education savings, small business checking, business checking as well as certificates of deposit and IRA certificates of deposit. The Company's sources of revenue are derived from interest and dividends earned on loans and investment securities.

Executives

Machteld V. Thomas	director	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Timothy L. Prindle	director, officer: Co-President, Co-CEO	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
David M. Flair	director, officer: Co-President, Co-CEO	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Rose M. Searcy	officer: EVP, Human Resources	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Gregory J. Olinde	officer: EVP and Chief Credit Officer	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Peter David Bramble	director	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
William Streett Baldwin	director	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Brian K Mchale	director	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Gary T. Amereihn	director, other: Chairman of the Board	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Joshua W. Posnick	director	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Crompton William B. Iii	director	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Joseph S Galli	director	3299 K STREET, NW SUITE 700, WASHINGTON DC 20007
Michael J Dee	officer: EVP and CFO	1301 MERRITT BLVD, DUNDALK MD 212222194
Frank W Dingle	director	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219
Jeffrey S Collier	officer: Sr. VP - Lending of Subsidiary	C/O BV FINANCIAL, INC., 7114 NORTH POINT ROAD, BALTIMORE MD 21219