CHSP 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.
Chesapeake Lodging Trust has a M-score of -2.64 suggests that the company is not a manipulator.
During the past 4 years, the highest Beneish M-Score of Chesapeake Lodging Trust was -1.93. The lowest was -3.87. And the median was -2.55.
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 Chesapeake Lodging Trust 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 * 0.6989||+||0.528 * 1.0115||+||0.404 * 0.9739||+||0.892 * 1.3184||+||0.115 * 0.7286|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.8342||+||4.679 * -0.0353||-||0.327 * 0.9857|
|This Year (Jun14) TTM:||Last Year (Jun13) TTM:|
|Accounts Receivable was $21.1 Mil.|
Revenue was 128.865 + 94.774 + 111.563 + 122.443 = $457.6 Mil.
Gross Profit was 47.178 + 22.015 + 34.464 + 42.911 = $146.6 Mil.
Total Current Assets was $118.0 Mil.
Total Assets was $1,597.4 Mil.
Property, Plant and Equipment(Net PPE) was $1,440.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $49.8 Mil.
Selling, General & Admin. Expense(SGA) was $14.0 Mil.
Total Current Liabilities was $51.4 Mil.
Long-Term Debt was $576.8 Mil.
Net Income was 21.249 + 2.178 + 11.528 + 19.243 = $54.2 Mil.
Non Operating Income was 0 + 0 + 0 + -0.372 = $-0.4 Mil.
Cash Flow from Operations was 36.508 + 10.367 + 27.566 + 36.543 = $111.0 Mil.
|Accounts Receivable was $22.9 Mil.
Revenue was 115.57 + 70.601 + 85.1 + 75.86 = $347.1 Mil.
Gross Profit was 42.2 + 15.639 + 26.738 + 27.875 = $112.5 Mil.
Total Current Assets was $111.9 Mil.
Total Assets was $1,580.0 Mil.
Property, Plant and Equipment(Net PPE) was $1,429.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.7 Mil.
Selling, General & Admin. Expense(SGA) was $12.7 Mil.
Total Current Liabilities was $50.0 Mil.
Long-Term Debt was $580.4 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)|
|=||(21.123 / 457.645)||/||(22.926 / 347.131)|
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)|
|=||(22.015 / 347.131)||/||(47.178 / 457.645)|
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 - (118.023 + 1440.848) / 1597.351)||/||(1 - (111.91 + 1428.975) / 1579.966)|
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))|
|=||(35.661 / (35.661 + 1428.975))||/||(49.814 / (49.814 + 1440.848))|
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)|
|=||(13.951 / 457.645)||/||(12.686 / 347.131)|
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)|
|=||((576.776 + 51.44) / 1597.351)||/||((580.401 + 49.966) / 1579.966)|
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|
|=||(54.198 - -0.372||-||110.984)||/||1597.351|
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.
Chesapeake Lodging Trust has a M-score of -2.64 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
Chesapeake Lodging Trust Annual Data
Chesapeake Lodging Trust Quarterly Data