BNCCORP (BNCCORP) Beneish M-Score : -2.16 (As of May. 28, 2024)

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What is BNCCORP 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 -2.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BNCC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75 Med: -2.41 Max: -1.41
Current: -2.16

During the past 13 years, the highest Beneish M-Score of BNCCORP was -1.41. The lowest was -3.75. And the median was -2.41.

BNCCORP 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 BNCCORP 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 * 1.7247

0.528 * 1

0.404 * 1.0018

0.892 * 0.797

0.115 * 1.2105

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9169

4.679 * -0.047486

0.327 * 0.9423

-2.16

* 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 $4.37 Mil.
Revenue was 9.397 + 9.509 + 8.978 + 11.755 = $39.64 Mil.
Gross Profit was 9.397 + 9.509 + 8.978 + 11.755 = $39.64 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $928.25 Mil.
Property, Plant and Equipment(Net PPE) was $11.69 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.49 Mil.
Selling, General, & Admin. Expense(SGA) was $19.72 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $16.11 Mil.
Net Income was 1.74 + 2.151 + 1.507 + 0.574 = $5.97 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.781 + 3.683 + 69.248 + -24.661 = $50.05 Mil.

Total Receivables was $3.18 Mil.
Revenue was 12.072 + 11.937 + 12.572 + 13.156 = $49.74 Mil.
Gross Profit was 12.072 + 11.937 + 12.572 + 13.156 = $49.74 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $897.29 Mil.
Property, Plant and Equipment(Net PPE) was $12.92 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.04 Mil.
Selling, General, & Admin. Expense(SGA) was $26.99 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $16.53 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)
	=	(4.371 / 39.639)	/	(3.18 / 49.737)
	=	0.11027	/	0.063936
	=	1.7247

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)
	=	(49.737 / 49.737)	/	(39.639 / 39.639)
	=	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 + 11.691) / 928.254)	/	(1 - (0 + 12.92) / 897.29)
	=	0.987405	/	0.985601
	=	1.0018

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
	=	39.639	/	49.737
	=	0.797

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))
	=	(2.044 / (2.044 + 12.92))	/	(1.487 / (1.487 + 11.691))
	=	0.136594	/	0.11284
	=	1.2105

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)
	=	(19.721 / 39.639)	/	(26.989 / 49.737)
	=	0.497515	/	0.542634
	=	0.9169

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)
	=	((16.109 + 0) / 928.254)	/	((16.525 + 0) / 897.29)
	=	0.017354	/	0.018417
	=	0.9423

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
	=	(5.972 - 0	-	50.051)	/	928.254
	=	-0.047486

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.

BNCCORP has a M-score of -2.16 suggests that the company is unlikely to be a manipulator.

BNCCORP Beneish M-Score Related Terms

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BNCCORP (BNCCORP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » BNCCORP Inc (OTCPK:BNCC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

322 East Main Avenue, P.O. Box 4050, Bismarck, ND, USA, 58501

Website

http://www.bnccorp.com

BNCCORP Inc is a bank holding company. The company operates in three segments: Community Banking, Mortgage Banking, and Holding company. It generates the majority of its revenue from the Community banking segment, which provides business & personal loans, commercial real estate loans, SBA loans, business & personal checking, saving products, cash management, wealth management, and retirement plan administration.

Executives

Bradley D Bonga	director	C/O BNCCORP, INC, 322 EAST MAIN STREET, BISMARCK ND 58501
Jerry R Woodcox	director
Stephen H Roman	director	322 EAST MAIN AVENUE, BISMARCK ND 58501
Timothy J Franz	officer: Chief Financial Officer	322 EAST MAIN AVENUE, BISMARCK ND 58501
Johnsen Richard M Jr	director
Gaylen A Ghylin	director	322 EAST MAIN AVENUE, BISMARCK ND 58501
E Thomas Welch	director, officer: Pres-BNC Natl Bank-Minnesota	11925 ST. ALBANS HOLLOW DRIVE, MINNETONKA MN 55305
Mark W Sheffert	director	4700 IDS CENTER, 80 SOUTH 8TH STREET, MINNEAPOLIS MN 55402
Mark E Peiler	officer: Chief Investment Officer
Dave Hoekstra	officer: Chief Credit Officer	322 EAST MAIN AVENUE, BISMARCK ND 58501
Shawn Cleveland Goll	officer: Chief Operating Officer
Neil M Brozen	officer: SVP Trust & Financial Services	322 EAST MAIN AVENUE, BISMARCK ND 58501
Mark A Litton	officer: Chief Credit Officer	322 EAST MAIN AVENUE, BISMARCK ND 58501
Jerry D Renk	officer: President - North Dakota	322 EAST MAIN AVENUE, BISMARCK ND 58501
David A Zelinsky	officer: President - Minnesota	322 EAST MAIN AVENUE, BISMARCK ND 58501