Century Next Financial (Century Next Financial) Beneish M-Score : -2.04 (As of May. 25, 2024)

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What is Century Next Financial 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 -2.04 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CTUY' s Beneish M-Score Range Over the Past 10 Years
Min: -11.43 Med: -2.15 Max: 0.1
Current: -2.04

During the past 13 years, the highest Beneish M-Score of Century Next Financial was 0.10. The lowest was -11.43. And the median was -2.15.

Century Next Financial 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 Century Next Financial 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 * 1.2457

0.528 * 1

0.404 * 1.0031

0.892 * 1.1679

0.115 * 1.114

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9515

4.679 * -0.003485

0.327 * 0.8104

-2.04

* 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 (Dec22) TTM:

Total Receivables was $3.08 Mil.
Revenue was 8.41 + 7.849 + 7.383 + 6.292 = $29.93 Mil.
Gross Profit was 8.41 + 7.849 + 7.383 + 6.292 = $29.93 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $793.79 Mil.
Property, Plant and Equipment(Net PPE) was $9.32 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.50 Mil.
Selling, General, & Admin. Expense(SGA) was $14.08 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $8.45 Mil.
Net Income was 2.661 + 2.23 + 1.89 + 1.058 = $7.84 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 4.094 + 3.721 + 0 + 2.79 = $10.61 Mil.

Total Receivables was $2.12 Mil.
Revenue was 6.275 + 6.553 + 6.688 + 6.114 = $25.63 Mil.
Gross Profit was 6.275 + 6.553 + 6.688 + 6.114 = $25.63 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $643.32 Mil.
Property, Plant and Equipment(Net PPE) was $9.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.57 Mil.
Selling, General, & Admin. Expense(SGA) was $12.67 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $8.45 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)
	=	(3.077 / 29.934)	/	(2.115 / 25.63)
	=	0.102793	/	0.08252
	=	1.2457

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)
	=	(25.63 / 25.63)	/	(29.934 / 29.934)
	=	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 + 9.319) / 793.787)	/	(1 - (0 + 9.531) / 643.318)
	=	0.98826	/	0.985185
	=	1.0031

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
	=	29.934	/	25.63
	=	1.1679

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))
	=	(0.572 / (0.572 + 9.531))	/	(0.499 / (0.499 + 9.319))
	=	0.056617	/	0.050825
	=	1.114

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)
	=	(14.084 / 29.934)	/	(12.673 / 25.63)
	=	0.470502	/	0.49446
	=	0.9515

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)
	=	((8.454 + 0) / 793.787)	/	((8.454 + 0) / 643.318)
	=	0.01065	/	0.013141
	=	0.8104

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
	=	(7.839 - 0	-	10.605)	/	793.787
	=	-0.003485

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.

Century Next Financial has a M-score of -2.04 suggests that the company is unlikely to be a manipulator.

Century Next Financial Beneish M-Score Related Terms

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Century Next Financial (Century Next Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Century Next Financial Corp (OTCPK:CTUY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

505 North Vienna Street, Ruston, LA, USA, 71270

Website

https://www.cnext.bank

Century Next Financial Corp is the United States-based holding company for Bank of Ruston. The Bank is a full-service bank that emphasizes professional and personal banking services directed to small and medium-sized businesses, professionals, and individuals. The Bank provides a full range of banking services including its business of real estate lending to residential and commercial customers.

Executives

William D Hogan	director, officer: EVP Business Development	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Thomas W Rogers	director	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
David Layne Weeks	officer: SVP and Chief Credit Officer*	BANK OF RUSTON, 505 N. VIENNA STREET, RUSTON LA 71270
Mark Anthony Taylor	officer: Chief Financial Officer	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Oneal Dan E Iii	director	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Benjamin L Denny	director, officer: President and CEO	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Warren L Post	officer: (1) VP and Mortgage Lender	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Lorie R Hamlin	officer: (1) VP and Operations Manager	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
James H Hall	officer: (1) SVP & Chief Credit Officer	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Scott R Thompson	director	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Daniel D Reneau	director	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Barbara L Ford	officer: (1) SVP and IT Officer	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
G Randall Allison	officer: (1) Vice President and CFO	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
Neal Walpole	director	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270
J Brandon Ewing	director	CENTURY NEXT FINANCIAL CORPORATION, 505 NORTH VIENNA STREET, RUSTON LA 71270