First US Bancshares (First US Bancshares) Beneish M-Score : -2.10 (As of May. 05, 2024)

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What is First US 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.

Good Sign:

Beneish M-Score -2.1 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FUSB' s Beneish M-Score Range Over the Past 10 Years
Min: -5.93 Med: -2.57 Max: -1.86
Current: -2.1

During the past 13 years, the highest Beneish M-Score of First US Bancshares was -1.86. The lowest was -5.93. And the median was -2.57.

First US 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 First US 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 * 1.3003

0.528 * 1

0.404 * 0.9874

0.892 * 1.0155

0.115 * 1.0538

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9838

4.679 * -0.004271

0.327 * 0.676

-2.10

* 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 $3.98 Mil.
Revenue was 10.027 + 10.302 + 10.122 + 10.263 = $40.71 Mil.
Gross Profit was 10.027 + 10.302 + 10.122 + 10.263 = $40.71 Mil.
Total Current Assets was $189.82 Mil.
Total Assets was $1,072.94 Mil.
Property, Plant and Equipment(Net PPE) was $24.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.78 Mil.
Selling, General, & Admin. Expense(SGA) was $18.13 Mil.
Total Current Liabilities was $12.03 Mil.
Long-Term Debt & Capital Lease Obligation was $10.80 Mil.
Net Income was 2.277 + 2.113 + 2.023 + 2.072 = $8.49 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 2.06 + 4 + 3.422 + 3.585 = $13.07 Mil.

Total Receivables was $3.01 Mil.
Revenue was 10.569 + 10.325 + 9.678 + 9.519 = $40.09 Mil.
Gross Profit was 10.569 + 10.325 + 9.678 + 9.519 = $40.09 Mil.
Total Current Assets was $163.96 Mil.
Total Assets was $994.67 Mil.
Property, Plant and Equipment(Net PPE) was $24.44 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.88 Mil.
Selling, General, & Admin. Expense(SGA) was $18.15 Mil.
Total Current Liabilities was $20.61 Mil.
Long-Term Debt & Capital Lease Obligation was $10.70 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)
	=	(3.976 / 40.714)	/	(3.011 / 40.091)
	=	0.097657	/	0.075104
	=	1.3003

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)
	=	(40.091 / 40.091)	/	(40.714 / 40.714)
	=	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 - (189.82 + 24.398) / 1072.94)	/	(1 - (163.958 + 24.439) / 994.667)
	=	0.800345	/	0.810593
	=	0.9874

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
	=	40.714	/	40.091
	=	1.0155

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))
	=	(1.882 / (1.882 + 24.439))	/	(1.776 / (1.776 + 24.398))
	=	0.071502	/	0.067854
	=	1.0538

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)
	=	(18.13 / 40.714)	/	(18.147 / 40.091)
	=	0.445301	/	0.452645
	=	0.9838

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)
	=	((10.799 + 12.03) / 1072.94)	/	((10.7 + 20.607) / 994.667)
	=	0.021277	/	0.031475
	=	0.676

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
	=	(8.485 - 0	-	13.067)	/	1072.94
	=	-0.004271

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.

First US Bancshares has a M-score of -2.10 suggests that the company is unlikely to be a manipulator.

First US Bancshares Beneish M-Score Related Terms

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First US Bancshares (First US Bancshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » First US Bancshares Inc (NAS:FUSB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

3291 U.S. Highway 280, Suite 100, Birmingham, AL, USA, 35243

Website

https://www.firstusbank.com

First US Bancshares Inc is a bank holding company. The Bank conducts a general commercial banking business and offers banking services such as demand, savings, individual retirement account and time deposits, personal and commercial loans, safe deposit box services and remote deposit capture. The Bank provides a range of commercial banking services to small and medium-sized businesses, property managers, business executives, professionals and other individuals. The Bank has two reportable operating segments namely the Bank and Acceptance Loan Company. The majority of the revenue is generated through interest earned on financial instruments, including loans and investment securities.

Executives

Robert S Briggs	director
James F House	director, officer: President & CEO	P O BOX 249, THOMASVILLE AL 36784
David Peter Hale	director	131 WEST FRONT STREET, P O BOX 249, THOMASVILLE AL 36784
Thomas S Elley	officer: VP,CFO,PAO,Treas,Asst Sec	P O BOX 249, THOMASVILLE AL 36784
Marlene M Mccain	director	P O BOX 249, THOMASVILLE AL 36784
Bearden Andrew C Jr	director
Anthony Cashio	officer: EVP, Chief Credit Officer-FUSB	P O BOX 249, THOMASVILLE AL 36784
Bruce N Wilson	director
Henderson J Samuel Iii	officer: EVP, Bham Market Exec, FUSB	P O BOX 249, THOMASVILLE AL 36784
Sheri S Cook	director	P O BOX 249, THOMASVILLE AL 36784
Aubrey S Miller	director	P O BOX 249, THOMASVILLE AL 36784
Donna D Smith	director	P O BOX 249, THOMASVILLE AL 36784
Phillip Wheat	officer: SVP,CIO/Info Sec Off of FUSB	P O BOX 249, THOMASVILLE AL 36784
Strickland Alonzo A J J	director
David L Saylors	officer: SVP, HR Director of FUSB	P O BOX 249, THOMASVILLE AL 36784