Bay National (Bay National) Beneish M-Score : 0.00 (As of Apr. 29, 2024)

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What is Bay National 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.

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

During the past 11 years, the highest Beneish M-Score of Bay National was 0.00. The lowest was 0.00. And the median was 0.00.

Bay National 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 Bay National 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 * 0.5546

0.528 * 1

0.404 * 0.781

0.892 * 0.7945

0.115 * 0.8074

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1035

4.679 * -0.065189

0.327 * 1.1426

-3.55

* 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 (Mar10) TTM:

Last Year (Mar09) TTM:

Total Receivables was $2.04 Mil.
Revenue was 1.658 + 1.594 + 1.671 + 1.691 = $6.61 Mil.
Gross Profit was 1.658 + 1.594 + 1.671 + 1.691 = $6.61 Mil.
Total Current Assets was $78.51 Mil.
Total Assets was $282.20 Mil.
Property, Plant and Equipment(Net PPE) was $0.71 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.32 Mil.
Selling, General, & Admin. Expense(SGA) was $6.24 Mil.
Total Current Liabilities was $1.88 Mil.
Long-Term Debt & Capital Lease Obligation was $8.00 Mil.
Net Income was -2.773 + -11.695 + -1.447 + -2.045 = $-17.96 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -3.754 + 1.854 + -0.168 + 2.504 = $0.44 Mil.

Total Receivables was $4.62 Mil.
Revenue was 1.691 + 1.965 + 2.211 + 2.458 = $8.33 Mil.
Gross Profit was 1.691 + 1.965 + 2.211 + 2.458 = $8.33 Mil.
Total Current Assets was $22.45 Mil.
Total Assets was $297.24 Mil.
Property, Plant and Equipment(Net PPE) was $1.04 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.35 Mil.
Selling, General, & Admin. Expense(SGA) was $7.12 Mil.
Total Current Liabilities was $1.11 Mil.
Long-Term Debt & Capital Lease Obligation was $8.00 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)
	=	(2.036 / 6.614)	/	(4.621 / 8.325)
	=	0.307832	/	0.555075
	=	0.5546

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)
	=	(8.325 / 8.325)	/	(6.614 / 6.614)
	=	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 - (78.506 + 0.712) / 282.197)	/	(1 - (22.454 + 1.042) / 297.235)
	=	0.719281	/	0.920951
	=	0.781

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
	=	6.614	/	8.325
	=	0.7945

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))
	=	(0.346 / (0.346 + 1.042))	/	(0.318 / (0.318 + 0.712))
	=	0.24928	/	0.308738
	=	0.8074

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)
	=	(6.243 / 6.614)	/	(7.121 / 8.325)
	=	0.943907	/	0.855375
	=	1.1035

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 + 1.877) / 282.197)	/	((8 + 1.105) / 297.235)
	=	0.035	/	0.030632
	=	1.1426

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
	=	(-17.96 - 0	-	0.436)	/	282.197
	=	-0.065189

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.

Bay National has a M-score of -3.55 suggests that the company is unlikely to be a manipulator.

Bay National Beneish M-Score Related Terms

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Bay National (Bay National) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Bay National Corp (GREY:BAYN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2328 West Joppa Road, Lutherville, MD, USA, 21093

Website

http://www.baynational.com

Bay National Corp is a bank holding company, which through National Bank, offers a complete range of commercial, private, cash management, retail, and residential mortgage banking services.