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Apartment Investment & Management Company (NYSE:AIV)
Beneish M-Score
-3.45 (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 -3.45 suggests that the company is not a manipulator.

AIV' s 10-Year Beneish M-Score Range
Min: -37.39   Max: -0.78
Current: -3.45

-37.39
-0.78

During the past 13 years, the highest Beneish M-Score of Apartment Investment & Management Company was -0.78. The lowest was -37.39. 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 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 * 0.9799+0.404 * 0.8521+0.892 * 1.0255+0.115 * 1.1384
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8714+4.679 * -0.0113-0.327 * 0.9746
=-3.45

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 248.924 + 219.483 + 254.514 + 259.662 = $982.6 Mil.
Gross Profit was 148.402 + 138.465 + 155.678 + 156.248 = $598.8 Mil.
Total Current Assets was $199.2 Mil.
Total Assets was $6,083.2 Mil.
Property, Plant and Equipment(Net PPE) was $5,369.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $302.9 Mil.
Selling, General & Admin. Expense(SGA) was $44.5 Mil.
Total Current Liabilities was $427.8 Mil.
Long-Term Debt was $4,394.8 Mil.
Net Income was 64.927 + 123.218 + 67.232 + 10.948 = $266.3 Mil.
Non Operating Income was -1.979 + 8.255 + -1.622 + -1.05 = $3.6 Mil.
Cash Flow from Operations was 54.801 + 77.473 + 75.097 + 124.134 = $331.5 Mil.
Accounts Receivable was $34.5 Mil.
Revenue was 237.504 + 214.523 + 252.845 + 253.288 = $958.2 Mil.
Gross Profit was 142.203 + 130.718 + 149.04 + 150.241 = $572.2 Mil.
Total Current Assets was $240.2 Mil.
Total Assets was $6,370.4 Mil.
Property, Plant and Equipment(Net PPE) was $5,497.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $355.8 Mil.
Selling, General & Admin. Expense(SGA) was $49.8 Mil.
Total Current Liabilities was $468.3 Mil.
Long-Term Debt was $4,713.5 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 / 982.583) / (34.477 / 958.16)
=0 / 0.03598251
=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)
=(138.465 / 958.16) / (148.402 / 982.583)
=0.59718836 / 0.60940704
=0.9799

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 - (199.218 + 5369.42) / 6083.152) / (1 - (240.178 + 5497.884) / 6370.393)
=0.08458017 / 0.09926091
=0.8521

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
=982.583 / 958.16
=1.0255

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))
=(355.834 / (355.834 + 5497.884)) / (302.873 / (302.873 + 5369.42))
=0.06078769 / 0.05339516
=1.1384

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 / 982.583) / (49.757 / 958.16)
=0.0452491 / 0.05192974
=0.8714

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)
=((4394.823 + 427.757) / 6083.152) / ((4713.46 + 468.304) / 6370.393)
=0.79277651 / 0.81341355
=0.9746

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
=(266.325 - 3.604 - 331.505) / 6083.152
=-0.0113

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 -3.45 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.69390.61550.73080.8380.84150.83280.86080.9200
GMI 0.95640.95580.97290.97050.96420.98150.98280.98050.97720.9799
AQI 2.18381.11140.87121.03151.0421.30591.61691.4660.56830.8521
SGI 1.0341.03561.0481.06750.96720.96370.97610.97940.99811.0255
DEPI 0.94891.02520.99660.93851.00880.99841.03241.08141.21041.1384
SGAI 0.92240.93870.99940.96071.00741.00540.92480.90280.92320.8714
LVGI 1.02141.02870.98091.00170.98270.98281.04211.00770.98370.9746
TATA -0.0438-0.0441-0.0422-0.0427-0.0321-0.0314-0.0354-0.0258-0.02-0.0113
M-score -2.48-2.98-2.94-2.77-2.80-2.69-2.55-2.49-3.64-3.45
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