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FFBW (FFBW) Beneish M-Score : -2.15 (As of May. 31, 2024)


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What is FFBW 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 -2.15 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FFBW' s Beneish M-Score Range Over the Past 10 Years
Min: -3.91   Med: -2.4   Max: -1.84
Current: -2.15

During the past 9 years, the highest Beneish M-Score of FFBW was -1.84. The lowest was -3.91. And the median was -2.40.

FFBW 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 FFBW 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 * 1+0.528 * 1+0.404 * 1.0003+0.892 * 0.9172+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * 0.004759-0.327 * 0.3572
=-2.15

* 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 2.869 + 2.946 + 2.929 + 3.001 = $11.75 Mil.
Gross Profit was 2.869 + 2.946 + 2.929 + 3.001 = $11.75 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $326.32 Mil.
Property, Plant and Equipment(Net PPE) was $6.37 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $7.00 Mil.
Net Income was 0.522 + 0.138 + 0.423 + 0.47 = $1.55 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0.00 Mil.
 Total Receivables was $0.00 Mil.
Revenue was 3.147 + 3.396 + 3.165 + 3.097 = $12.81 Mil.
Gross Profit was 3.147 + 3.396 + 3.165 + 3.097 = $12.81 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $333.07 Mil.
Property, Plant and Equipment(Net PPE) was $6.61 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General, & Admin. Expense(SGA) was $3.84 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $20.00 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 / 11.745) / (0 / 12.805)
=0 / 0
=1

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)
=(12.805 / 12.805) / (11.745 / 11.745)
=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 + 6.365) / 326.318) / (1 - (0 + 6.61) / 333.068)
=0.980494 / 0.980154
=1.0003

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
=11.745 / 12.805
=0.9172

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))
=(0.277 / (0.277 + 6.61)) / (0 / (0 + 6.365))
=0.040221 / 0
=1

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)
=(0 / 11.745) / (3.841 / 12.805)
=0 / 0.299961
=0

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)
=((7 + 0) / 326.318) / ((20 + 0) / 333.068)
=0.021451 / 0.060048
=0.3572

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
=(1.553 - 0 - 0) / 326.318
=0.004759

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.

FFBW has a M-score of -2.15 suggests that the company is unlikely to be a manipulator.

FFBW (FFBW) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » FFBW Inc (OTCPK:FFBW) » Definitions » Beneish M-Score
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PFBX FBSI UNIF SLBK UBCP CIZN USMT LSBK MNMB BYFC CAR:BPV CAR:MVZ.A CAR:BNC NSE:HDFCBANK SHSE:600036 NSE:ICICIBANK SAU:1120 ISX:BBCA XPAR:BNP MIC:SBER
Traded in Other Exchanges
N/A
Address
1360 South Moorland Road, Brookfield, WI, USA, 53005
Website
https://www.firstfederalwisconsin.com
FFBW Inc is a United States-based community bank. It offers banking and financial products and services such as checking accounts, savings accounts, credit cards, home equity loans, mortgage centers, and others. Its loan portfolio consists of Commercial and Residential real estate and consumers. It provides a variety of financial services to individual and corporate customers.
Executives
Joanne Anton director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
James A. Tarantino director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Edward H Schaefer director, officer: President and CEO C/O CITIZENS COMMUNITY BANCORP, INC., 2174 EASTRIDGE CENTER, EAU CLAIRE WI 54701
James P Lenahan director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Leann Eddingsaas officer: PAO 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Devona Wright Cottrell director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Christine A Specht director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Steven L Wierschem officer: CFO 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Stephen Wayne Johnson director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Jose A Olivieri director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Nikola B. Schaumberg officer: Chief Financial Officer 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Kathryn Gutenkunst director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Thomas C. Martin director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Michael J. Pjevach director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005
Thomas L. Mckeever director 1360 SOUTH MOORLAND ROAD, BROOKFIELD WI 53005