FCE.A 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 13 years, the highest Beneish M-Score of Forest City Enterprises Inc was -3.21. The lowest was -3.21. And the median was -3.21.
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 Forest City Enterprises 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 * 0.9268||+||0.528 * 0.787||+||0.404 * 0.943||+||0.892 * 0.9485||+||0.115 * 1.5124|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 2.6919||+||4.679 * -0.0617||-||0.327 * 0.8649|
|This Year (Jun15) TTM:||Last Year (Jun14) TTM:|
|Accounts Receivable was $446.2 Mil.|
Revenue was 259.759 + 237.082 + 252.135 + 234.743 = $983.7 Mil.
Gross Profit was 114.891 + 96.154 + 100.639 + 98.352 = $410.0 Mil.
Total Current Assets was $1,025.9 Mil.
Total Assets was $10,328.3 Mil.
Property, Plant and Equipment(Net PPE) was $8,132.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $243.0 Mil.
Selling, General & Admin. Expense(SGA) was $55.2 Mil.
Total Current Liabilities was $1,753.1 Mil.
Long-Term Debt was $4,847.5 Mil.
Net Income was 303.756 + -54.209 + 69.191 + 0.686 = $319.4 Mil.
Non Operating Income was 482.632 + -37.255 + 258.043 + -2.269 = $701.2 Mil.
Cash Flow from Operations was 75.401 + 12.992 + 100.793 + 66.029 = $255.2 Mil.
|Accounts Receivable was $507.6 Mil.
Revenue was 229.637 + 249.537 + 266.227 + 291.762 = $1,037.2 Mil.
Gross Profit was 93.889 + 89.995 + 55.972 + 100.358 = $340.2 Mil.
Total Current Assets was $1,203.8 Mil.
Total Assets was $8,551.5 Mil.
Property, Plant and Equipment(Net PPE) was $6,320.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $290.0 Mil.
Selling, General & Admin. Expense(SGA) was $21.6 Mil.
Total Current Liabilities was $1,275.0 Mil.
Long-Term Debt was $5,044.1 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)|
|=||(446.16 / 983.719)||/||(507.57 / 1037.163)|
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)|
|=||(96.154 / 1037.163)||/||(114.891 / 983.719)|
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 - (1025.9 + 8132.306) / 10328.303)||/||(1 - (1203.836 + 6320.312) / 8551.521)|
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))|
|=||(290.019 / (290.019 + 6320.312))||/||(242.955 / (242.955 + 8132.306))|
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)|
|=||(55.2 / 983.719)||/||(21.62 / 1037.163)|
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)|
|=||((4847.534 + 1753.11) / 10328.303)||/||((5044.103 + 1274.992) / 8551.521)|
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|
|=||(319.424 - 701.151||-||255.215)||/||10328.303|
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.
Forest City Enterprises Inc has a M-score of -3.21 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
Forest City Enterprises Inc Annual Data
Forest City Enterprises Inc Quarterly Data