Woodlands Financial Services Co (Woodlands Financial Services Co) Beneish M-Score : -2.46 (As of May. 03, 2024)

View and export this data going back to . Start your Free Trial

What is Woodlands Financial Services Co 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 -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WDFN' s Beneish M-Score Range Over the Past 10 Years
Min: -6.79 Med: -2.46 Max: -2.35
Current: -2.46

During the past 11 years, the highest Beneish M-Score of Woodlands Financial Services Co was -2.35. The lowest was -6.79. And the median was -2.46.

Woodlands Financial Services Co 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 Woodlands Financial Services Co 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 * 0.9692

0.528 * 1

0.404 * 0.9888

0.892 * 1.0475

0.115 * 1.0162

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9925

4.679 * -0.003355

0.327 * 0.9183

-2.46

* 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 (Dec17) TTM:

Last Year (Dec16) TTM:

Total Receivables was $1.13 Mil.
Revenue was $16.73 Mil.
Gross Profit was $16.73 Mil.
Total Current Assets was $92.27 Mil.
Total Assets was $396.41 Mil.
Property, Plant and Equipment(Net PPE) was $10.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.40 Mil.
Selling, General, & Admin. Expense(SGA) was $6.81 Mil.
Total Current Liabilities was $0.13 Mil.
Long-Term Debt & Capital Lease Obligation was $14.00 Mil.
Net Income was $3.17 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $4.50 Mil.

Total Receivables was $1.12 Mil.
Revenue was $15.97 Mil.
Gross Profit was $15.97 Mil.
Total Current Assets was $87.47 Mil.
Total Assets was $391.32 Mil.
Property, Plant and Equipment(Net PPE) was $10.24 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.41 Mil.
Selling, General, & Admin. Expense(SGA) was $6.55 Mil.
Total Current Liabilities was $1.12 Mil.
Long-Term Debt & Capital Lease Obligation was $14.07 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)
	=	(1.133 / 16.732)	/	(1.116 / 15.973)
	=	0.067715	/	0.069868
	=	0.9692

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)
	=	(15.973 / 15.973)	/	(16.732 / 16.732)
	=	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 - (92.274 + 10.029) / 396.408)	/	(1 - (87.468 + 10.236) / 391.317)
	=	0.741925	/	0.75032
	=	0.9888

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
	=	16.732	/	15.973
	=	1.0475

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))
	=	(0.412 / (0.412 + 10.236))	/	(0.397 / (0.397 + 10.029))
	=	0.038693	/	0.038078
	=	1.0162

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)
	=	(6.811 / 16.732)	/	(6.551 / 15.973)
	=	0.407064	/	0.41013
	=	0.9925

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)
	=	((14 + 0.125) / 396.408)	/	((14.069 + 1.115) / 391.317)
	=	0.035632	/	0.038802
	=	0.9183

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
	=	(3.174 - 0	-	4.504)	/	396.408
	=	-0.003355

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.

Woodlands Financial Services Co has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.

Woodlands Financial Services Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Woodlands Financial Services Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Woodlands Financial Services Co (Woodlands Financial Services Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Woodlands Financial Services Co (OTCPK:WDFN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2450 E. Third Street, Williamsport, PA, USA, 17701

Website

http://www.woodlandsbank.com

Woodlands Financial Services Co is a Pennsylvania corporation organized as financial services holding company of Woodlands Bank. The Bank is a state chartered commercial bank located in Williamsport, Pennsylvania and operates as a traditional community bank, providing commercial and consumer banking and trust services in Lycoming and Clinton Counties and the surrounding market area. Its services comprise Merchant Services, Cyber Security, Online Banking & Bill Pay, Mobile Banking and Additional Bank Services. It also offers other services including trust and asset management and money orders.