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Fortress Investment Group LLC (NYSE:FIG)
Beneish M-Score
-2.28 (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 -2.28 suggests that the company is not a manipulator.

FIG' s Beneish M-Score Range Over the Past 10 Years
Min: -7.57   Max: 1.12
Current: -2.28

-7.57
1.12

During the past 13 years, the highest Beneish M-Score of Fortress Investment Group LLC was 1.12. The lowest was -7.57. And the median was -3.37.


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 * 1.8268+0.528 * 1+0.404 * 0.9102+0.892 * 0.7052+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8546+4.679 * -0.0303-0.327 * 1.4312
=-2.28

* 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 + 670.578 + 403.76 + 427.313 = $1,728 Mil.
Gross Profit was 226.689 + 670.578 + 403.76 + 427.313 = $1,728 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 $77 Mil.
Selling, General & Admin. Expense(SGA) was $1,466 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 / 1728.34)
=0.17775586 / 0.09730493
=1.8268

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)
=(414.66 / 1728.34) / (231.617 / 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 / 1728.34
=0.7052

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))
=(77.236 / (77.236 + 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) / (1465.997 / 1728.34)
=0.72491762 / 0.848211
=0.8546

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 -2.28 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 1.04670.38460.32732.09913.26620.96430.83161.11260.54931.2759
GMI 1111111111
AQI 10.55681.45241.01460.87330.9721.15610.86791.10660.916
SGI 1.51390.81250.59210.79821.62690.90361.12961.30431.43230.67
DEPI 1112.84920.98530.7881.37151.09431.35370.5003
SGAI 0.80831.068225.02981.31090.70861.17950.40820.76761.18840.9064
LVGI 0.68395.21310.43711.64870.81870.9091.06110.70971.48860.9144
TATA 0.21010.2498-0.7662-0.6843-0.3638-0.2852-0.1277-0.157-0.0358-0.1079
M-score -0.86-3.61-10.81-4.90-1.48-3.97-2.93-2.75-2.78-3.07

Fortress Investment Group LLC Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.11260.78060.20280.16120.54930.90174.34245.56431.27591.8268
GMI 1111111111
AQI 0.86790.95210.92590.62671.10661.09261.08051.53220.9160.9102
SGI 1.30431.27651.43921.52791.43231.29871.04850.86110.670.7052
DEPI 1.094313.98979.02817.5531.35370.07150.11080.13240.50031
SGAI 0.76760.81490.70450.76391.18861.23381.48251.54110.90630.8546
LVGI 0.70971.150.92851.44871.48860.88581.02050.77250.91441.4312
TATA -0.157-0.0645-0.0236-0.0232-0.0358-0.1472-0.15-0.1231-0.1079-0.0303
M-score -2.75-1.28-1.96-2.39-2.79-3.06-0.221.12-3.07-2.28
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