Switch to:
Apartment Investment & Management Co (NYSE:AIV)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

AIV' s Beneish M-Score Range Over the Past 10 Years
Min: -35.87   Max: -1.73
Current: -2.59

-35.87
-1.73

During the past 13 years, the highest Beneish M-Score of Apartment Investment & Management Co was -1.73. The lowest was -35.87. And the median was -2.70.


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 * 0.9721+0.404 * 0.7928+0.892 * 1.0119+0.115 * 0.9058
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9346+4.679 * -0.0064-0.327 * 0.984
=-2.59

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 251.218 + 246.239 + 245.875 + 246.387 = $989.7 Mil.
Gross Profit was 161.896 + 156.867 + 157.264 + 155.861 = $631.9 Mil.
Total Current Assets was $430.3 Mil.
Total Assets was $6,274.2 Mil.
Property, Plant and Equipment(Net PPE) was $5,474.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $317.2 Mil.
Selling, General & Admin. Expense(SGA) was $43.7 Mil.
Total Current Liabilities was $307.3 Mil.
Long-Term Debt was $3,955.6 Mil.
Net Income was 224.433 + 26.057 + 69.656 + 21.925 = $342.1 Mil.
Non Operating Income was 4.906 + 0.077 + -0.244 + -1.983 = $2.8 Mil.
Cash Flow from Operations was 102.812 + 73.953 + 101.447 + 101.14 = $379.4 Mil.
Accounts Receivable was $0.0 Mil.
Revenue was 244.783 + 244.265 + 242.178 + 246.843 = $978.1 Mil.
Gross Profit was 155.767 + 147.17 + 153.774 + 150.324 = $607.0 Mil.
Total Current Assets was $135.9 Mil.
Total Assets was $6,157.7 Mil.
Property, Plant and Equipment(Net PPE) was $5,564.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $290.5 Mil.
Selling, General & Admin. Expense(SGA) was $46.2 Mil.
Total Current Liabilities was $385.7 Mil.
Long-Term Debt was $3,866.0 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 / 989.719) / (0 / 978.069)
=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)
=(607.035 / 978.069) / (631.888 / 989.719)
=0.6206464 / 0.63845192
=0.9721

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 - (430.317 + 5474.29) / 6274.228) / (1 - (135.918 + 5564.185) / 6157.694)
=0.05891099 / 0.07431207
=0.7928

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
=989.719 / 978.069
=1.0119

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))
=(290.484 / (290.484 + 5564.185)) / (317.227 / (317.227 + 5474.29))
=0.04961579 / 0.05477442
=0.9058

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)
=(43.653 / 989.719) / (46.16 / 978.069)
=0.04410646 / 0.04719503
=0.9346

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)
=((3955.638 + 307.337) / 6274.228) / ((3866.007 + 385.66) / 6157.694)
=0.67944216 / 0.69046416
=0.984

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
=(342.071 - 2.756 - 379.352) / 6274.228
=-0.0064

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 -2.59 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 1.16210.93990.7280.98340.87890111
GMI 1.02011.77441.02680.97570.95540.96690.97880.99480.9764
AQI 1.72310.6910.57941.14131.19821.0420.56830.9940.9395
SGI 0.85960.90290.90990.84740.95391.04831.01621.01060.9969
DEPI 1.10630.72180.98121.03741.00361.00881.27461.0460.9355
SGAI 1.171.21120.62781.1120.99980.92950.9060.95530.9823
LVGI 0.011103.23761.03431.01451.07140.98270.98370.93750.9386
TATA -0.0405-0.0109-0.0363-0.0428-0.0438-0.0315-0.0199-0.0019-0.0182
M-score -2.04-35.89-3.09-2.81-2.80-3.49-2.69-2.45-2.59

Apartment Investment & Management Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0001111111
GMI 0.98050.98090.99320.99480.99090.98510.97390.97640.96580.9721
AQI 0.85210.81090.75560.9940.89690.8120.92090.93950.98740.7928
SGI 1.02851.0461.0591.01060.99410.98780.98450.99691.00371.0119
DEPI 1.21.13731.12251.0461.01951.03181.00740.93550.93080.9058
SGAI 0.8680.87590.88420.95531.00131.07711.09680.98231.00190.9346
LVGI 0.97460.92910.90040.93750.86980.90260.95180.93861.02020.984
TATA -0.0226-0.0172-0.0103-0.0242-0.0103-0.0022-0.0206-0.0182-0.0303-0.0064
M-score -3.50-3.47-3.43-2.56-2.54-2.56-2.64-2.59-2.66-2.59
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK