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Apartment Investment & Management Company (NYSE:AIV)
Beneish M-Score
-3.50 (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 -3.50 suggests that the company is not a manipulator.

AIV' s 10-Year Beneish M-Score Range
Min: -37.39   Max: -0.78
Current: -3.5

-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 -2.96.


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 * 0.9795+0.404 * 0.8109+0.892 * 1.024+0.115 * 1.0785
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8957+4.679 * -0.0173-0.327 * 0.9291
=-3.50

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 246.418 + 248.924 + 219.483 + 254.514 = $969.3 Mil.
Gross Profit was 150.959 + 148.402 + 138.465 + 155.678 = $593.5 Mil.
Total Current Assets was $257.4 Mil.
Total Assets was $6,078.7 Mil.
Property, Plant and Equipment(Net PPE) was $5,264.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $300.4 Mil.
Selling, General & Admin. Expense(SGA) was $43.4 Mil.
Total Current Liabilities was $443.7 Mil.
Long-Term Debt was $4,206.2 Mil.
Net Income was 77.042 + 64.927 + 123.218 + 67.232 = $332.4 Mil.
Non Operating Income was 66.851 + 67.513 + 8.255 + -1.622 = $141.0 Mil.
Cash Flow from Operations was 89.478 + 54.801 + 77.473 + 75.097 = $296.8 Mil.
Accounts Receivable was $29.9 Mil.
Revenue was 241.745 + 237.504 + 214.523 + 252.845 = $946.6 Mil.
Gross Profit was 145.75 + 142.203 + 130.718 + 149.04 = $567.7 Mil.
Total Current Assets was $199.9 Mil.
Total Assets was $6,470.7 Mil.
Property, Plant and Equipment(Net PPE) was $5,540.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $342.5 Mil.
Selling, General & Admin. Expense(SGA) was $47.4 Mil.
Total Current Liabilities was $484.1 Mil.
Long-Term Debt was $4,843.5 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 / 969.339) / (29.906 / 946.617)
=0 / 0.0315925
=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)
=(148.402 / 946.617) / (150.959 / 969.339)
=0.59972618 / 0.61227703
=0.9795

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 - (257.406 + 5264.939) / 6078.665) / (1 - (199.941 + 5540.513) / 6470.715)
=0.0915201 / 0.11285631
=0.8109

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
=969.339 / 946.617
=1.024

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))
=(342.503 / (342.503 + 5540.513)) / (300.44 / (300.44 + 5264.939))
=0.05821895 / 0.05398374
=1.0785

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)
=(43.433 / 969.339) / (47.354 / 946.617)
=0.04480682 / 0.05002446
=0.8957

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)
=((4206.202 + 443.736) / 6078.665) / ((4843.547 + 484.126) / 6470.715)
=0.7649604 / 0.82335152
=0.9291

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
=(332.419 - 140.997 - 296.849) / 6078.665
=-0.0173

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 -3.50 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.61550.73080.8380.84150.83280.87710.9374000
GMI 0.95580.97290.97050.96420.98150.98230.97990.97640.97920.9795
AQI 1.11140.87121.03151.0421.30591.61691.4660.56830.85210.8109
SGI 1.03561.0481.06750.96720.96370.9580.96130.97971.00681.024
DEPI 1.02520.99660.93851.00880.99841.05811.08141.21041.13841.0785
SGAI 0.93870.99940.96071.00741.00540.94230.91990.94060.88750.8957
LVGI 1.02870.98091.00170.98270.98281.04211.00770.98370.97460.9291
TATA -0.0441-0.0422-0.0427-0.0321-0.0314-0.0354-0.0259-0.02-0.0227-0.0173
M-score -2.98-2.94-2.77-2.80-2.69-2.55-2.50-3.66-3.53-3.50
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