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Apartment Investment & Management Co (NYSE:AIV)
Beneish M-Score
-2.69 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Apartment Investment & Management Co has a M-score of -2.69 suggests that the company is not a manipulator.

AIV' s Beneish M-Score Range Over the Past 10 Years
Min: -35.87   Max: -1.73
Current: -2.69

-35.87
-1.73

During the past 13 years, the highest Beneish M-Score of Apartment Investment & Management Co was -1.73. The lowest was -35.87. And the median was -2.70.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Apartment Investment & Management Co 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+0.528 * 0.9658+0.404 * 0.9874+0.892 * 1.0037+0.115 * 0.9308
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0019+4.679 * -0.0376-0.327 * 1.0202
=-2.69

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 246.239 + 245.875 + 246.387 + 244.783 = $983.3 Mil.
Gross Profit was 156.867 + 157.264 + 155.861 + 155.767 = $625.8 Mil.
Total Current Assets was $154.6 Mil.
Total Assets was $6,142.2 Mil.
Property, Plant and Equipment(Net PPE) was $5,527.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $311.7 Mil.
Selling, General & Admin. Expense(SGA) was $44.5 Mil.
Total Current Liabilities was $403.4 Mil.
Long-Term Debt was $3,917.6 Mil.
Net Income was 26.057 + 69.656 + 21.925 + 63.869 = $181.5 Mil.
Non Operating Income was 0.077 + -0.244 + -1.983 + 45.131 = $43.0 Mil.
Cash Flow from Operations was 73.953 + 101.447 + 101.14 + 92.653 = $369.2 Mil.
Accounts Receivable was $0.0 Mil.
Revenue was 244.265 + 242.178 + 246.843 + 246.418 = $979.7 Mil.
Gross Profit was 147.17 + 153.774 + 150.324 + 150.897 = $602.2 Mil.
Total Current Assets was $259.9 Mil.
Total Assets was $6,215.5 Mil.
Property, Plant and Equipment(Net PPE) was $5,484.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $286.7 Mil.
Selling, General & Admin. Expense(SGA) was $44.2 Mil.
Total Current Liabilities was $397.7 Mil.
Long-Term Debt was $3,888.3 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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 / 983.284) / (0 / 979.704)
=0 / 0
=1

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)
=(602.165 / 979.704) / (625.759 / 983.284)
=0.61463973 / 0.63639701
=0.9658

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (154.612 + 5527.521) / 6142.213) / (1 - (259.918 + 5484.023) / 6215.453)
=0.0749046 / 0.07586124
=0.9874

4. SGI = Sales Growth Index

Ratio of sales 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
=983.284 / 979.704
=1.0037

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(286.733 / (286.733 + 5484.023)) / (311.697 / (311.697 + 5527.521))
=0.04968725 / 0.05337992
=0.9308

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(44.461 / 983.284) / (44.217 / 979.704)
=0.04521684 / 0.04513302
=1.0019

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3917.59 + 403.357) / 6142.213) / ((3888.284 + 397.746) / 6215.453)
=0.70348374 / 0.68957645
=1.0202

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
=(181.507 - 42.981 - 369.193) / 6142.213
=-0.0376

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Apartment Investment & Management Co has a M-score of -2.69 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Apartment Investment & Management Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.98141.00190.80760.87040.88910111
GMI 1.27530.79881.78951.01260.94460.95740.98230.99440.977
AQI 1.72310.6910.57941.14131.19821.0420.56830.9940.9395
SGI 1.01790.8470.82020.95750.94290.9570.94281.01060.9969
DEPI 0.88930.98660.87941.03741.00361.00881.21041.10150.9355
SGAI 0.86221.31010.85640.80121.01251.01730.97740.95680.98
LVGI 0.011103.23761.03431.01451.07140.98270.98370.93750.9386
TATA -0.04050.0063-0.0363-0.0428-0.0438-0.0321-0.0202-0.0019-0.0182
M-score -1.90-36.30-2.74-2.74-2.81-3.59-2.78-2.45-2.59

Apartment Investment & Management Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1000111111
GMI 0.97770.98050.98090.99320.99480.99090.98510.97390.97640.9658
AQI 0.56830.85210.81090.75560.9940.89690.8120.92090.93950.9874
SGI 1.00111.02851.0461.0591.01060.99410.98780.98450.99691.0037
DEPI 1.27461.21.13731.12251.0461.01951.03181.00740.93550.9308
SGAI 0.91970.8680.87590.88420.95531.00131.07711.09680.98231.0019
LVGI 0.98370.97460.92910.90040.93750.86980.90260.95180.93861.0202
TATA -0.0199-0.0226-0.0172-0.0103-0.0242-0.0103-0.0095-0.0278-0.0254-0.0376
M-score -2.71-3.50-3.47-3.43-2.56-2.54-2.60-2.67-2.62-2.69
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