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Apartment Investment & Management Company (NYSE:AIV)
Beneish M-Score
-3.62 (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 Company has a M-score of -3.62 suggests that the company is not a manipulator.

AIV' s 10-Year Beneish M-Score Range
Min: -37.39   Max: -2.48
Current: -3.62

-37.39
-2.48

During the past 13 years, the highest Beneish M-Score of Apartment Investment & Management Company was -2.48. The lowest was -37.39. And the median was -3.00.


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 Company 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 * 0+0.528 * 0.9788+0.404 * 0.5683+0.892 * 1.0166+0.115 * 1.2104
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9065+4.679 * -0.0202-0.327 * 0.9837
=-3.62

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 219.483 + 254.514 + 259.662 + 255.45 = $989.1 Mil.
Gross Profit was 138.465 + 155.678 + 156.248 + 152.141 = $602.5 Mil.
Total Current Assets was $182.8 Mil.
Total Assets was $6,079.4 Mil.
Property, Plant and Equipment(Net PPE) was $5,391.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $308.3 Mil.
Selling, General & Admin. Expense(SGA) was $45.7 Mil.
Total Current Liabilities was $438.5 Mil.
Long-Term Debt was $4,388.2 Mil.
Net Income was 123.218 + 67.232 + 10.948 + 5.892 = $207.3 Mil.
Non Operating Income was 8.255 + -1.622 + -1.05 + -0.986 = $4.6 Mil.
Cash Flow from Operations was 77.473 + 75.097 + 124.134 + 48.892 = $325.6 Mil.
Accounts Receivable was $34.0 Mil.
Revenue was 214.523 + 252.845 + 253.288 + 252.32 = $973.0 Mil.
Gross Profit was 130.718 + 149.04 + 150.241 + 150.14 = $580.1 Mil.
Total Current Assets was $230.0 Mil.
Total Assets was $6,401.4 Mil.
Property, Plant and Equipment(Net PPE) was $5,235.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $366.8 Mil.
Selling, General & Admin. Expense(SGA) was $49.6 Mil.
Total Current Liabilities was $753.4 Mil.
Long-Term Debt was $4,413.1 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 / 989.109) / (34.02 / 972.976)
=0 / 0.03496489
=0

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)
=(155.678 / 972.976) / (138.465 / 989.109)
=0.59625212 / 0.60916643
=0.9788

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 - (182.788 + 5391.209) / 6079.413) / (1 - (229.998 + 5234.961) / 6401.38)
=0.08313566 / 0.14628424
=0.5683

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
=989.109 / 972.976
=1.0166

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))
=(366.75 / (366.75 + 5234.961)) / (308.282 / (308.282 + 5391.209))
=0.06547107 / 0.05408939
=1.2104

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)
=(45.708 / 989.109) / (49.602 / 972.976)
=0.04621129 / 0.05097967
=0.9065

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)
=((4388.185 + 438.531) / 6079.413) / ((4413.083 + 753.357) / 6401.38)
=0.79394442 / 0.80708222
=0.9837

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
=(207.29 - 4.597 - 325.596) / 6079.413
=-0.0202

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 Company has a M-score of -3.62 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 Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 3.10840.35141.01690.82250.70050.83380
GMI 01.77441.02680.97570.95730.9650.9788
AQI 1.72310.6910.57940.62622.18381.0420.5683
SGI 0.85960.90290.90990.84741.02440.97621.0162
DEPI 1.10630.72181.12630.95590.94891.00881.2104
SGAI 1.171.21120.62781.1120.93110.99820.9068
LVGI 0.011103.23761.03431.06411.02140.98270.9837
TATA -0.0441-0.0109-0.0363-0.0428-0.0438-0.0321-0.0202
M-score -0.80-36.43-2.80-3.19-2.48-2.80-3.62

Apartment Investment & Management Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.82010.69390.61550.73080.8380.84150.81750.84510.90320
GMI 0.94460.95640.95580.97290.97050.96420.98280.98410.9820.9788
AQI 1.13672.18381.11140.87121.03151.0421.30591.61691.4660.5683
SGI 0.84181.0341.03561.0481.06750.96720.98180.99430.99761.0166
DEPI 0.97380.94891.02520.99660.93851.00880.98641.03241.08141.2104
SGAI 1.15790.92240.93870.99940.96071.00740.9870.90790.88640.9065
LVGI 1.02851.02141.02870.98091.00170.98270.98281.04211.00770.9837
TATA -0.0425-0.0438-0.0441-0.0422-0.0427-0.0321-0.0316-0.0356-0.026-0.0202
M-score -3.00-2.48-2.98-2.94-2.77-2.80-2.69-2.55-2.49-3.62
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