Mercer Bancorp (Mercer Bancorp) Beneish M-Score : -1.71 (As of Jun. 07, 2024)

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What is Mercer 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.

Warning Sign:

Beneish M-Score -1.71 higher than -1.78, which implies that the company might have manipulated its financial results.

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

MSBB' s Beneish M-Score Range Over the Past 10 Years
Min: -1.71 Med: -1.71 Max: -1.71
Current: -1.71

During the past 2 years, the highest Beneish M-Score of Mercer Bancorp was -1.71. The lowest was -1.71. And the median was -1.71.

Mercer 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 Mercer Bancorp 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 * 1.2415

0.528 * 1

0.404 * 1.001

0.892 * 1.0696

0.115 * 0.7957

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0478

4.679 * 0.040242

0.327 * 0

-1.71

* 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 $0.57 Mil.
Revenue was 1.413 + 1.4 + 1.481 + 1.44 = $5.73 Mil.
Gross Profit was 1.413 + 1.4 + 1.481 + 1.44 = $5.73 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $169.43 Mil.
Property, Plant and Equipment(Net PPE) was $2.72 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.35 Mil.
Selling, General, & Admin. Expense(SGA) was $2.66 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was 0.129 + 0.174 + -0.16 + 0.288 = $0.43 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -2.22 + -2.117 + 4.956 + -7.006 = $-6.39 Mil.

Total Receivables was $0.43 Mil.
Revenue was 1.392 + 1.384 + 1.417 + 1.168 = $5.36 Mil.
Gross Profit was 1.392 + 1.384 + 1.417 + 1.168 = $5.36 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $149.02 Mil.
Property, Plant and Equipment(Net PPE) was $2.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.25 Mil.
Selling, General, & Admin. Expense(SGA) was $2.37 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $2.00 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)
	=	(0.567 / 5.734)	/	(0.427 / 5.361)
	=	0.098884	/	0.079649
	=	1.2415

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)
	=	(5.361 / 5.361)	/	(5.734 / 5.734)
	=	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 + 2.72) / 169.426)	/	(1 - (0 + 2.533) / 149.024)
	=	0.983946	/	0.983003
	=	1.001

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
	=	5.734	/	5.361
	=	1.0696

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))
	=	(0.252 / (0.252 + 2.533))	/	(0.349 / (0.349 + 2.72))
	=	0.090485	/	0.113718
	=	0.7957

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)
	=	(2.655 / 5.734)	/	(2.369 / 5.361)
	=	0.463028	/	0.441895
	=	1.0478

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 + 0) / 169.426)	/	((2 + 0) / 149.024)
	=	0	/	0.013421
	=	0

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
	=	(0.431 - 0	-	-6.387)	/	169.426
	=	0.040242

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.

Mercer Bancorp has a M-score of -1.71 signals that the company is likely to be a manipulator.

Mercer Bancorp Beneish M-Score Related Terms

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Mercer Bancorp (Mercer Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Mercer Bancorp Inc (OTCPK:MSBB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1100 Irmscher Boulevard, Celina, OH, USA, 45822

Website

https://www.mercersavings.com

Mercer Bancorp Inc operates as a full-service bank. It offers deposits, loans, and other services. The loan portfolio consists primarily of residential mortgage loans secured by one- to four-family residential properties and agricultural real estate loans secured by farmland located in primary market area.

Executives

Alvin B Parmiter	director, officer: President and CEO	425 MAIN STREET, CALDWELL OH 43724
Kristin M Fee	director	1100 IRMSCHER BLVD, CELINA OH 45822
Rick L Ross	officer: Treasurer	1100 IRMSCHER BLVD, CELINA OH 45822
Richard A Mosier	director	1100 IRMSCHER BLVD, CELINA OH 45822
Trever A Bransteter	officer: SVP, Lending	1100 IRMSCHER BLVD, CELINA OH 45822
Ryan Moorman	officer: SVP, Lending	1100 IRMSCHER BLVD, CELINA OH 45822
Timothy L Bigham	officer: SVP, Operations	1100 IRMSCHER BLVD, CELINA OH 45822
Jose W Faller	director	1100 IRMSCHER BLVD, CELINA OH 45822
Michael J Boley	director	1100 IRMSCHER BLVD, CELINA OH 45822
David L Keiser	director	1100 IRMSCHER BLVD, CELINA OH 45822