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Assurant Inc (NYSE:AIZ)
Beneish M-Score
0.00 (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.

Assurant Inc has a M-score of signals that the company is a manipulator.

During the past 13 years, the highest Beneish M-Score of Assurant Inc was 0.00. The lowest was 0.00. And the median was 0.00.


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 Assurant Inc 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 $1,218 Mil.
Revenue was 1797.793 + 2147.527 + 2547.834 + 2534.156 = $9,027 Mil.
Gross Profit was 1797.793 + 2147.527 + 2547.834 + 2534.156 = $9,027 Mil.
Total Current Assets was $0 Mil.
Total Assets was $29,804 Mil.
Property, Plant and Equipment(Net PPE) was $328 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $3,754 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $1,165 Mil.
Net Income was 169.349 + 220.318 + 65.744 + -7.022 = $448 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 37.325 + -339.03 + -274.902 + 360.578 = $-216 Mil.
Accounts Receivable was $1,426 Mil.
Revenue was 2644.894 + 2598.61 + 2622.692 + 2702.488 = $10,569 Mil.
Gross Profit was 2644.894 + 2598.61 + 2622.692 + 2702.488 = $10,569 Mil.
Total Current Assets was $0 Mil.
Total Assets was $30,842 Mil.
Property, Plant and Equipment(Net PPE) was $289 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $3,852 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $1,171 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)
=(1218.299 / 9027.31) / (1426.284 / 10568.684)
=0.13495704 / 0.13495379
=

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)
=(10568.684 / 10568.684) / (9027.31 / 9027.31)
=1 / 1
=

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 - (0 + 327.861) / 29804.213) / (1 - (0 + 289.416) / 30842.082)
=0.98899951 / 0.9906162
=

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
=9027.31 / 10568.684
=

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))
=(0 / (0 + 289.416)) / (0 / (0 + 327.861))
=0 / 0
=

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)
=(3753.64 / 9027.31) / (3852.057 / 10568.684)
=0.41580936 / 0.3644784
=

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)
=((1165.255 + 0) / 29804.213) / ((1171.229 + 0) / 30842.082)
=0.03909699 / 0.03797503
=

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
=(448.389 - 0 - -216.029) / 29804.213
=0.0223

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.

Assurant Inc has a M-score of signals that the company is likely to 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.

Assurant Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.90540.8690.97851.09061.23241.29231.17731.17860.8844
GMI 111111111
AQI 1.00060.99891.00071.00051.00111.00031.00010.99970.9989
SGI 1.04741.01751.01150.98010.97011.02851.06341.14740.9946
DEPI 1.39480.99480.73280.82170.9791.04230.99110.92191.1066
SGAI 0.97541.00361.0281.02661.04671.05351.08431.05931.0697
LVGI 0.68341.09130.9480.97980.97710.93361.64110.6731.0508
TATA -0.0206-0.02250.0062-0.0099-0.0117-0.0068-0.01810.0024-0.0038
M-score -2.47-2.72-2.48-2.48-2.35-2.20-2.57-2.09-2.63

Assurant Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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