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Apartment Investment & Management Company (NYSE:AIV)
Beneish M-Score
-3.44 (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 -3.44 suggests that the company is not a manipulator.

AIV' s 10-Year Beneish M-Score Range
Min: -36.83   Max: -2.44
Current: -3.44

-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 * 0.9929+0.404 * 0.7556+0.892 * 1.059+0.115 * 1.0639
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8854+4.679 * -0.0106-0.327 * 0.9004
=-3.44

* 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 + 250.861 = $993.0 Mil.
Gross Profit was 150.39 + 150.959 + 148.402 + 156.415 = $606.2 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 $297.8 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 + 9.419 = $145.5 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 243.943 + 241.745 + 237.504 + 214.523 = $937.7 Mil.
Gross Profit was 149.672 + 145.75 + 142.203 + 130.718 = $568.3 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 $335.4 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 / 993.046) / (32.925 / 937.715)
=0 / 0.03511195
=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 / 937.715) / (150.39 / 993.046)
=0.60609354 / 0.6104108
=0.9929

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
=993.046 / 937.715
=1.059

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))
=(335.39 / (335.39 + 5510.043)) / (297.837 / (297.837 + 5224.875))
=0.05737642 / 0.05392948
=1.0639

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 / 993.046) / (46.005 / 937.715)
=0.04343807 / 0.04906075
=0.8854

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 - 145.516 - 310.862) / 5937.463
=-0.0106

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 -3.44 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 1.16210.93990.7280.89280.90150.83380
GMI 01.77441.02680.97870.95430.9650.9788
AQI 1.72310.6910.57941.14131.19821.0420.5683
SGI 0.85960.90290.90990.93350.930.97621.0162
DEPI 1.10630.72180.98121.03741.00361.00881.2104
SGAI 1.171.21120.62781.00931.02580.99820.9068
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 -2.59-35.89-3.09-2.79-2.81-2.80-3.62

Apartment Investment & Management Company Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.90740.92620.84150.83280.87710.9480000
GMI 0.96640.96350.96420.98150.98230.97920.97770.98050.98080.9929
AQI 0.87121.03151.0421.30591.61691.4660.56830.85210.81090.7556
SGI 0.94990.96580.96720.96370.9580.95051.00111.02851.0461.059
DEPI 0.99660.93851.00880.99841.05811.10471.21041.13841.07851.0639
SGAI 1.10281.06211.00741.00540.94230.93030.92050.86880.87690.8854
LVGI 0.98091.00170.98270.98281.04211.00770.98370.97460.92910.9004
TATA -0.0422-0.0427-0.0321-0.0314-0.0354-0.0259-0.0202-0.0229-0.0175-0.0106
M-score -2.89-2.80-2.80-2.69-2.55-2.49-3.64-3.50-3.47-3.44
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