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Apartment Investment & Management Company (NYSE:AIV)
Beneish M-Score
-3.56 (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 -3.56 suggests that the company is not a manipulator.

AIV' s 10-Year Beneish M-Score Range
Min: -36.83   Max: -2.44
Current: -3.56

-36.83
-2.44

During the past 13 years, the highest Beneish M-Score of Apartment Investment & Management Company was -2.44. The lowest was -36.83. And the median was -2.96.


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 * 0.9892+0.404 * 0.7556+0.892 * 0.9475+0.115 * 1.0772
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9896+4.679 * -0.0104-0.327 * 0.9004
=-3.56

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 246.843 + 246.418 + 248.924 + 219.483 = $961.7 Mil.
Gross Profit was 150.39 + 150.959 + 148.402 + 138.465 = $588.2 Mil.
Total Current Assets was $195.2 Mil.
Total Assets was $5,937.5 Mil.
Property, Plant and Equipment(Net PPE) was $5,224.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $290.2 Mil.
Selling, General & Admin. Expense(SGA) was $43.1 Mil.
Total Current Liabilities was $415.7 Mil.
Long-Term Debt was $3,962.2 Mil.
Net Income was 128.028 + 77.042 + 64.927 + 123.218 = $393.2 Mil.
Non Operating Income was 1.733 + 66.851 + 67.513 + 8.255 = $144.4 Mil.
Cash Flow from Operations was 89.11 + 89.478 + 54.801 + 77.473 = $310.9 Mil.
Accounts Receivable was $32.9 Mil.
Revenue was 254.514 + 259.662 + 255.45 + 245.361 = $1,015.0 Mil.
Gross Profit was 155.678 + 156.248 + 152.141 + 150.088 = $614.2 Mil.
Total Current Assets was $231.1 Mil.
Total Assets was $6,489.5 Mil.
Property, Plant and Equipment(Net PPE) was $5,510.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $331.0 Mil.
Selling, General & Admin. Expense(SGA) was $46.0 Mil.
Total Current Liabilities was $484.9 Mil.
Long-Term Debt was $4,829.5 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 / 961.668) / (32.925 / 1014.987)
=0 / 0.03243884
=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)
=(150.959 / 1014.987) / (150.39 / 961.668)
=0.60508657 / 0.61166224
=0.9892

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 - (195.21 + 5224.875) / 5937.463) / (1 - (231.058 + 5510.043) / 6489.506)
=0.08713789 / 0.11532542
=0.7556

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
=961.668 / 1014.987
=0.9475

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))
=(331.043 / (331.043 + 5510.043)) / (290.155 / (290.155 + 5224.875))
=0.05667491 / 0.05261168
=1.0772

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)
=(43.136 / 961.668) / (46.005 / 1014.987)
=0.0448554 / 0.0453257
=0.9896

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)
=((3962.236 + 415.707) / 5937.463) / ((4829.521 + 484.856) / 6489.506)
=0.73734236 / 0.81891857
=0.9004

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
=(393.215 - 144.352 - 310.862) / 5937.463
=-0.0104

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 -3.56 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 1.16210.93990.7280.89280.90150.77360
GMI 01.77441.02680.97870.95430.96150.9823
AQI 1.72310.6910.57941.14131.19820.69370.8536
SGI 0.85960.90290.90990.93350.931.05220.9428
DEPI 1.10630.72180.98121.03741.00361.05881.1533
SGAI 1.171.21120.62781.00931.02580.9260.9774
LVGI 0.011103.23761.03431.01451.07140.98270.9837
TATA -0.0441-0.0109-0.0363-0.0428-0.0438-0.0321-0.0202
M-score -2.59-35.89-3.09-2.79-2.81-2.91-3.59

Apartment Investment & Management Company Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.87290.87840.77430.78450.83960.92340000
GMI 0.96620.96290.96230.97740.98230.98150.98080.98250.97980.9892
AQI 0.87121.03150.69371.30591.61691.4660.85360.85210.81090.7556
SGI 0.98751.01831.05131.02311.00070.97580.93530.94560.9430.9475
DEPI 0.96960.91211.05881.02531.09511.15071.15331.14581.10251.0772
SGAI 1.06081.00730.92690.94710.90210.90620.98520.9450.97260.9896
LVGI 0.98091.00170.98270.98281.04211.00770.98370.97460.92910.9004
TATA -0.0425-0.043-0.0324-0.0316-0.0356-0.026-0.0202-0.0227-0.0173-0.0104
M-score -2.88-2.80-2.91-2.68-2.54-2.48-3.60-3.59-3.58-3.56
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