Farmers Bank of Appomattox (Farmers Bank of Appomattox) Beneish M-Score : -3.14 (As of May. 03, 2024)

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What is Farmers Bank of Appomattox 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 -3.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Farmers Bank of Appomattox's Beneish M-Score or its related term are showing as below:

FBPA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14 Med: -2.49 Max: -2.3
Current: -3.14

During the past 11 years, the highest Beneish M-Score of Farmers Bank of Appomattox was -2.30. The lowest was -3.14. And the median was -2.49.

Farmers Bank of Appomattox 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 Farmers Bank of Appomattox 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 * 1.2024

0.528 * 1

0.404 * 0.9387

0.892 * 1.0099

0.115 * 1.5066

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0894

4.679 * -0.003732

0.327 * 3.6146

-3.14

* 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 (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $1.62 Mil.
Revenue was $11.61 Mil.
Gross Profit was $11.61 Mil.
Total Current Assets was $100.44 Mil.
Total Assets was $345.11 Mil.
Property, Plant and Equipment(Net PPE) was $3.35 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.21 Mil.
Selling, General, & Admin. Expense(SGA) was $4.61 Mil.
Total Current Liabilities was $0.62 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was $2.90 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $4.18 Mil.

Total Receivables was $1.33 Mil.
Revenue was $11.50 Mil.
Gross Profit was $11.50 Mil.
Total Current Assets was $78.08 Mil.
Total Assets was $316.21 Mil.
Property, Plant and Equipment(Net PPE) was $2.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.25 Mil.
Selling, General, & Admin. Expense(SGA) was $4.19 Mil.
Total Current Liabilities was $0.16 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)
	=	(1.615 / 11.611)	/	(1.33 / 11.497)
	=	0.139092	/	0.115682
	=	1.2024

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)
	=	(11.497 / 11.497)	/	(11.611 / 11.611)
	=	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 - (100.439 + 3.348) / 345.11)	/	(1 - (78.078 + 2.577) / 316.208)
	=	0.699264	/	0.744931
	=	0.9387

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
	=	11.611	/	11.497
	=	1.0099

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))
	=	(0.254 / (0.254 + 2.577))	/	(0.212 / (0.212 + 3.348))
	=	0.089721	/	0.059551
	=	1.5066

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)
	=	(4.613 / 11.611)	/	(4.193 / 11.497)
	=	0.397296	/	0.364704
	=	1.0894

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)
	=	((0 + 0.615) / 345.11)	/	((0 + 0.156) / 316.208)
	=	0.001782	/	0.000493
	=	3.6146

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
	=	(2.896 - 0	-	4.184)	/	345.11
	=	-0.003732

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.

Farmers Bank of Appomattox has a M-score of -3.14 suggests that the company is unlikely to be a manipulator.

Farmers Bank of Appomattox Beneish M-Score Related Terms

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Farmers Bank of Appomattox (Farmers Bank of Appomattox) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Farmers Bank of Appomattox (OTCPK:FBPA) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

223 Main Street, Appomattox, VA, USA, 24522

Website

https://www.thefarmersbankva.com

Farmers Bank of Appomattox provides banking services. It is engaged in personal and business banking services including checking & savings, certificate of deposit, loans/mortgages, commercial checking, and commercial loans.