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Apartment Investment & Management Co (NYSE:AIV)
Beneish M-Score
-2.73 (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 -2.73 suggests that the company is not a manipulator.

AIV' s Beneish M-Score Range Over the Past 10 Years
Min: -36.83   Max: -2.4
Current: -2.73

-36.83
-2.4

During the past 13 years, the highest Beneish M-Score of Apartment Investment & Management Co was -2.40. The lowest was -36.83. And the median was -2.94.


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 * 0.9736+0.404 * 0.9209+0.892 * 0.9845+0.115 * 1.0369
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0978+4.679 * -0.0416-0.327 * 0.9518
=-2.73

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 246.387 + 244.783 + 244.265 + 242.178 = $977.6 Mil.
Gross Profit was 155.861 + 155.767 + 147.17 + 154.112 = $612.9 Mil.
Total Current Assets was $138.5 Mil.
Total Assets was $6,217.7 Mil.
Property, Plant and Equipment(Net PPE) was $5,580.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $298.3 Mil.
Selling, General & Admin. Expense(SGA) was $46.6 Mil.
Total Current Liabilities was $427.8 Mil.
Long-Term Debt was $3,935.9 Mil.
Net Income was 21.925 + 63.869 + 93.26 + 39.252 = $218.3 Mil.
Non Operating Income was -1.983 + 45.131 + 87.957 + -0.772 = $130.3 Mil.
Cash Flow from Operations was 101.14 + 92.653 + 64.651 + 88.035 = $346.5 Mil.
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 $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.



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 / 977.613) / (0 / 993.046)
=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)
=(155.767 / 993.046) / (155.861 / 977.613)
=0.6104108 / 0.62694543
=0.9736

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 - (138.471 + 5580.271) / 6217.662) / (1 - (195.21 + 5224.875) / 5937.463)
=0.08024238 / 0.08713789
=0.9209

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
=977.613 / 993.046
=0.9845

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))
=(290.155 / (290.155 + 5224.875)) / (298.284 / (298.284 + 5580.271))
=0.05261168 / 0.05074104
=1.0369

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)
=(46.618 / 977.613) / (43.136 / 993.046)
=0.04768554 / 0.04343807
=1.0978

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)
=((3935.899 + 427.751) / 6217.662) / ((3962.236 + 415.707) / 5937.463)
=0.70181525 / 0.73734236
=0.9518

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
=(218.306 - 130.333 - 346.479) / 6217.662
=-0.0416

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 -2.73 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 1.16210.93990.68861.03960.87890.7765011
GMI 01.77441.0070.99480.95540.96690.97880.99440.977
AQI 1.72310.6910.41621.5891.19821.0420.56830.9940.9395
SGI 0.85960.90290.96190.80160.95391.04831.01621.01060.9969
DEPI 1.10630.72181.01541.00251.00361.00881.21041.10150.9355
SGAI 1.171.21120.72940.95710.99980.92950.90680.95680.98
LVGI 0.011103.23761.07150.97931.07140.98270.98370.93750.9386
TATA -0.0441-0.0109-0.0363-0.0428-0.0438-0.0315-0.0202-0.00190.0404
M-score -2.59-35.89-3.18-2.57-2.80-2.77-3.62-2.45-2.31

Apartment Investment & Management Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.9032000011111
GMI 0.9820.98060.98050.97970.99010.99110.98880.98380.97360.9772
AQI 1.4660.56830.85210.81090.75560.9940.89690.8120.92090.9395
SGI 0.99761.04881.03881.01861.0090.96460.96620.97740.98450.9969
DEPI 1.08141.21041.16921.13791.11411.10151.05911.05691.03690.9355
SGAI 0.88640.87860.86020.90050.92921.00281.0321.091.09780.9796
LVGI 1.00770.98370.97460.92910.90040.93750.86980.90260.95180.9386
TATA -0.026-0.0201-0.0226-0.0172-0.0103-0.0242-0.024-0.0234-0.0416-0.0229
M-score -2.49-3.58-3.49-3.49-3.49-2.60-2.63-2.67-2.73-2.61
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