GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » CFSB Bancorp Inc (NAS:CFSB) » Definitions » Beneish M-Score

CFSB Bancorp (CFSB Bancorp) Beneish M-Score : -3.79 (As of May. 07, 2024)


View and export this data going back to 2022. Start your Free Trial

What is CFSB Bancorp 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 -3.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CFSB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.79   Med: -2.61   Max: -2.31
Current: -3.79

During the past 4 years, the highest Beneish M-Score of CFSB Bancorp was -2.31. The lowest was -3.79. And the median was -2.61.


CFSB Bancorp 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 CFSB Bancorp 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 * 1.3262+0.528 * 1+0.404 * 1.0002+0.892 * 0.8489+0.115 * 1.0587
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2855+4.679 * -0.002003-0.327 * 0.9114
=-2.34

* 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 $1.47 Mil.
Revenue was 1.811 + 1.966 + 2.057 + 2.303 = $8.14 Mil.
Gross Profit was 1.811 + 1.966 + 2.057 + 2.303 = $8.14 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $359.03 Mil.
Property, Plant and Equipment(Net PPE) was $4.22 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.23 Mil.
Selling, General, & Admin. Expense(SGA) was $6.48 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.92 Mil.
Net Income was -0.21 + 0.123 + 0.105 + 0.355 = $0.37 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.5 + 0.436 + 0.616 + 0.54 = $1.09 Mil.
Total Receivables was $1.30 Mil.
Revenue was 2.493 + 2.563 + 2.325 + 2.204 = $9.59 Mil.
Gross Profit was 2.493 + 2.563 + 2.325 + 2.204 = $9.59 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $356.83 Mil.
Property, Plant and Equipment(Net PPE) was $4.27 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.25 Mil.
Selling, General, & Admin. Expense(SGA) was $5.94 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)
=(1.467 / 8.137) / (1.303 / 9.585)
=0.180288 / 0.135942
=1.3262

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)
=(9.585 / 9.585) / (8.137 / 8.137)
=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 + 4.224) / 359.025) / (1 - (0 + 4.271) / 356.833)
=0.988235 / 0.988031
=1.0002

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
=8.137 / 9.585
=0.8489

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))
=(0.247 / (0.247 + 4.271)) / (0.23 / (0.23 + 4.224))
=0.05467 / 0.051639
=1.0587

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)
=(6.479 / 8.137) / (5.937 / 9.585)
=0.796239 / 0.619405
=1.2855

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)
=((0.92 + 0) / 359.025) / ((1.003 + 0) / 356.833)
=0.002562 / 0.002811
=0.9114

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
=(0.373 - 0 - 1.092) / 359.025
=-0.002003

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.

CFSB Bancorp has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.


CFSB Bancorp Beneish M-Score Related Terms

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


CFSB Bancorp (CFSB Bancorp) Business Description

Traded in Other Exchanges
N/A
Address
15 Beach Street, Quincy, MA, USA, 02170
CFSB Bancorp Inc provides banking services. It offers a variety of financial services to individuals and small businesses through its offices in Quincy, Holbrook, and Weymouth. Its primary deposit products are savings, checking, and term certificate accounts, and its primary lending product is residential mortgage loans. Its loan segment includes residential real estate, multi-family loans, commercial real estate, construction, Second mortgages and home equity lines of credit, Home Improvement, and consumer loans.
Executives
William R Esselystyn officer: VP-Information Systems 15 BEACH STREET, QUINCY MA 02170
Susan Shea officer: Treasurer and COO 15 BEACH STREET, QUINCY MA 02170
Michael E Mcfarland director, officer: President and CEO 15 BEACH STREET, QUINCY MA 02170
Mary Kuropatkin officer: VP-Retail Banking 15 BEACH STREET, QUINCY MA 02170
Kemal Denizkurt officer: VP-Financial Markets 15 BEACH STREET, QUINCY MA 02170
Angela Blanchard officer: VP-Retail Lending 15 BEACH STREET, QUINCY MA 02170
Paul N Baharian director 15 BEACH STREET, QUINCY MA 02170
Beach, Mhc 15 10 percent owner 15 BEACH STREET, QUINCY MA 02170
Robert Guarnieri director 15 BEACH STREET, QUINCY MA 02170
Edward J Keohane director 15 BEACH STREET, QUINCY MA 02170
Tracy L Wilson director 15 BEACH STREET, QUINCY MA 02170
O'leary James M Jr director 15 BEACH STREET, QUINCY MA 02170
Stephen D Marini director 15 BEACH STREET, QUINCY MA 02170