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Fortress Investment Group LLC (NYSE:FIG)
Beneish M-Score
-2.52 (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.

Fortress Investment Group LLC has a M-score of -2.52 suggests that the company is not a manipulator.

FIG' s Beneish M-Score Range Over the Past 10 Years
Min: -7.37   Max: 0.83
Current: -2.52

-7.37
0.83

During the past 13 years, the highest Beneish M-Score of Fortress Investment Group LLC was 0.83. The lowest was -7.37. And the median was -3.21.


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 Fortress Investment Group LLC 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 * 1.2632+0.528 * 1+0.404 * 0.9102+0.892 * 1.0198+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8987+4.679 * -0.0303-0.327 * 1.4312
=-2.52

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $217 Mil.
Revenue was 231.617 + 414.66 + 264.019 + 308.488 = $1,219 Mil.
Gross Profit was 231.617 + 414.66 + 264.019 + 308.488 = $1,219 Mil.
Total Current Assets was $442 Mil.
Total Assets was $2,008 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $884 Mil.
Total Current Liabilities was $486 Mil.
Long-Term Debt was $261 Mil.
Net Income was -8.526 + 54.708 + -14.245 + 3.316 = $35 Mil.
Non Operating Income was -37.115 + -16.38 + -61.555 + -49.569 = $-165 Mil.
Cash Flow from Operations was -135.94 + 147.12 + 168.471 + 81.012 = $261 Mil.
Accounts Receivable was $168 Mil.
Revenue was 226.689 + 454.946 + 243.18 + 270.344 = $1,195 Mil.
Gross Profit was 226.689 + 454.946 + 243.18 + 270.344 = $1,195 Mil.
Total Current Assets was $313 Mil.
Total Assets was $2,187 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $22 Mil.
Selling, General & Admin. Expense(SGA) was $964 Mil.
Total Current Liabilities was $493 Mil.
Long-Term Debt was $75 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)
=(216.646 / 1218.784) / (168.176 / 1195.159)
=0.17775586 / 0.14071433
=1.2632

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)
=(1195.159 / 1195.159) / (1218.784 / 1218.784)
=1 / 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 - (442.199 + 0) / 2008.289) / (1 - (313.409 + 0) / 2187.361)
=0.77981306 / 0.85671821
=0.9102

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
=1218.784 / 1195.159
=1.0198

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))
=(21.64 / (21.64 + 0)) / (41.037 / (41.037 + 0))
=1 / 1
=1

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)
=(883.518 / 1218.784) / (964.001 / 1195.159)
=0.72491762 / 0.80658808
=0.8987

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)
=((260.677 + 486.076) / 2008.289) / ((75 + 493.293) / 2187.361)
=0.37183543 / 0.25980759
=1.4312

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
=(35.253 - -164.619 - 260.663) / 2008.289
=-0.0303

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.

Fortress Investment Group LLC has a M-score of -2.52 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.

Fortress Investment Group LLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04670.38460.32732.71962.22871.09080.83161.11260.561.2515
GMI 1111111111
AQI 10.55681.45241.00040.90930.94671.15540.88420.97151.0248
SGI 1.51390.81250.59210.79821.62690.90361.12961.30431.43230.67
DEPI 1112.84920.98530.7881.37150.32961.67851.3395
SGAI 0.80831.068225.02981.31090.70861.17950.40820.76761.18840.9064
LVGI 0.68395.21310.43711.66230.80981.16140.63851.18310.87341.2191
TATA 0.21010.2498-0.7662-0.6843-0.3638-0.2852-0.128-0.157-0.0848-0.1079
M-score -0.86-3.61-10.81-4.34-2.42-3.95-2.79-2.98-2.82-3.05

Fortress Investment Group LLC Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.11260.82590.23850.2090.84171.23244.81785.02860.83271.2632
GMI 1111111111
AQI 0.88420.95210.92590.62670.97151.09261.08051.53221.02480.9102
SGI 1.30431.20641.22351.17820.9530.95020.94510.95291.00691.0198
DEPI 0.291217.866915.583816.42573.67410.0560.06420.06090.61191
SGAI 0.76760.83860.76070.86571.15671.14011.23461.13320.93120.8987
LVGI 1.18311.150.92851.44870.87340.88581.02050.77251.21911.4312
TATA -0.157-0.063-0.0199-0.0296-0.0813-0.1451-0.151-0.1101-0.1079-0.0303
M-score -2.99-0.85-1.36-1.69-2.74-3.050.150.83-3.23-2.52
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