Southern Community Bancshares (Southern Community Bancshares) Beneish M-Score : 0.00 (As of Jun. 02, 2024)

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What is Southern Community Bancshares 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 Southern Community Bancshares's Beneish M-Score or its related term are showing as below:

During the past 4 years, the highest Beneish M-Score of Southern Community Bancshares was 0.00. The lowest was 0.00. And the median was 0.00.

Southern Community Bancshares 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 Southern Community Bancshares 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

0.528 * 1

0.404 * 0.9948

0.892 * 1.9639

0.115 * 1.7964

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5356

4.679 * -0.015542

0.327 * 0.9789

-1.52

* 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 (Dec00) TTM:

Last Year (Dec99) TTM:

Total Receivables was $0.00 Mil.
Revenue was 0.075 + 0.151 + 0.057 + 0.043 = $0.33 Mil.
Gross Profit was 0.075 + 0.151 + 0.057 + 0.043 = $0.33 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $66.66 Mil.
Property, Plant and Equipment(Net PPE) was $0.69 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.06 Mil.
Selling, General, & Admin. Expense(SGA) was $1.14 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1.00 Mil.
Net Income was 0.183 + 0.12 + 0.174 + 0.153 = $0.63 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.448 + 0.57 + 0.222 + 0.426 = $1.67 Mil.

Total Receivables was $0.00 Mil.
Revenue was 0.043 + 0.055 + 0.036 + 0.032 = $0.17 Mil.
Gross Profit was 0.043 + 0.055 + 0.036 + 0.032 = $0.17 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $65.25 Mil.
Property, Plant and Equipment(Net PPE) was $0.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.05 Mil.
Selling, General, & Admin. Expense(SGA) was $1.08 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1.00 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 / 0.326)	/	(0 / 0.166)
	=	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)
	=	(0.166 / 0.166)	/	(0.326 / 0.326)
	=	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 + 0.687) / 66.66)	/	(1 - (0 + 0.332) / 65.252)
	=	0.989694	/	0.994912
	=	0.9948

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
	=	0.326	/	0.166
	=	1.9639

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))
	=	(0.051 / (0.051 + 0.332))	/	(0.055 / (0.055 + 0.687))
	=	0.133159	/	0.074124
	=	1.7964

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)
	=	(1.135 / 0.326)	/	(1.079 / 0.166)
	=	3.481595	/	6.5
	=	0.5356

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)
	=	((1 + 0) / 66.66)	/	((1 + 0) / 65.252)
	=	0.015002	/	0.015325
	=	0.9789

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
	=	(0.63 - 0	-	1.666)	/	66.66
	=	-0.015542

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.

Southern Community Bancshares has a M-score of -1.52 signals that the company is likely to be a manipulator.

Southern Community Bancshares Beneish M-Score Related Terms

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Southern Community Bancshares (Southern Community Bancshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Southern Community Bancshares Inc (OTCPK:SCBS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

420 2nd Avenue SW, Cullman, AL, USA, 35055

Website

https://www.fcbcullman.com

Southern Community Bancshares Inc is a United States-based holding company. It provides retail and commercial loans, deposits, and other financial services in its primary market area of Cullman, Alabama, and the surrounding areas.