AYR has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 11 years, the highest Beneish M-Score of Aircastle Ltd was -1.27. The lowest was -3.26. And the median was -2.78.
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 Aircastle Ltd 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 * 1.0217||+||0.528 * 0.9895||+||0.404 * 0.9731||+||0.892 * 1.1552||+||0.115 * 1.0499|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9035||+||4.679 * -0.0555||-||0.327 * 1.027|
|This Year (Dec14) TTM:||Last Year (Dec13) TTM:|
|Accounts Receivable was $3.3 Mil.|
Revenue was 238.257 + 177.596 + 226.146 + 176.603 = $818.6 Mil.
Gross Profit was 236.24 + 176.883 + 223.5 + 174.74 = $811.4 Mil.
Total Current Assets was $336.9 Mil.
Total Assets was $6,227.0 Mil.
Property, Plant and Equipment(Net PPE) was $5,579.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $299.4 Mil.
Selling, General & Admin. Expense(SGA) was $55.8 Mil.
Total Current Liabilities was $191.2 Mil.
Long-Term Debt was $3,796.5 Mil.
Net Income was 72.764 + 19.151 + 3.136 + 5.777 = $100.8 Mil.
Non Operating Income was 10.211 + 11.391 + -35.686 + 1.867 = $-12.2 Mil.
Cash Flow from Operations was 92.811 + 151.97 + 111.014 + 102.991 = $458.8 Mil.
|Accounts Receivable was $2.8 Mil.
Revenue was 191.988 + 170.09 + 170.378 + 176.189 = $708.6 Mil.
Gross Profit was 189.821 + 168.176 + 164.24 + 172.777 = $695.0 Mil.
Total Current Assets was $887.2 Mil.
Total Assets was $6,251.9 Mil.
Property, Plant and Equipment(Net PPE) was $5,044.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $284.9 Mil.
Selling, General & Admin. Expense(SGA) was $53.4 Mil.
Total Current Liabilities was $160.9 Mil.
Long-Term Debt was $3,737.4 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(3.334 / 818.602)||/||(2.825 / 708.645)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(176.883 / 708.645)||/||(236.24 / 818.602)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (336.874 + 5579.718) / 6227.013)||/||(1 - (887.211 + 5044.41) / 6251.893)|
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.
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))|
|=||(284.924 / (284.924 + 5044.41))||/||(299.365 / (299.365 + 5579.718))|
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)|
|=||(55.773 / 818.602)||/||(53.436 / 708.645)|
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)|
|=||((3796.454 + 191.2) / 6227.013)||/||((3737.362 + 160.896) / 6251.893)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(100.828 - -12.217||-||458.786)||/||6227.013|
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.
Aircastle Ltd has a M-score of -2.58 suggests that the company will not be a manipulator.
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
Aircastle Ltd Annual Data
Aircastle Ltd Quarterly Data