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Fortress Investment Group LLC (NYSE:FIG)
Beneish M-Score
-3.23 (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 -3.23 suggests that the company is not a manipulator.

FIG' s Beneish M-Score Range Over the Past 10 Years
Min: -7.37   Max: -2.49
Current: -3.23

-7.37
-2.49

During the past 13 years, the highest Beneish M-Score of Fortress Investment Group LLC was -2.49. The lowest was -7.37. And the median was -2.92.


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 * 0.8327+0.528 * 1+0.404 * 1.0248+0.892 * 1.0069+0.115 * 0.6119
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9312+4.679 * -0.1079-0.327 * 1.2191
=-3.23

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $274 Mil.
Revenue was 414.66 + 264.019 + 308.488 + 226.689 = $1,214 Mil.
Gross Profit was 414.66 + 264.019 + 308.488 + 226.689 = $1,214 Mil.
Total Current Assets was $614 Mil.
Total Assets was $2,275 Mil.
Property, Plant and Equipment(Net PPE) was $50 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General & Admin. Expense(SGA) was $908 Mil.
Total Current Liabilities was $684 Mil.
Long-Term Debt was $231 Mil.
Net Income was 54.708 + -14.245 + 3.316 + 34.713 = $78 Mil.
Non Operating Income was -16.38 + -61.555 + -49.569 + 208.508 = $81 Mil.
Cash Flow from Operations was 147.12 + 168.471 + 81.012 + -153.551 = $243 Mil.
Accounts Receivable was $327 Mil.
Revenue was 454.946 + 243.18 + 270.344 + 237.11 = $1,206 Mil.
Gross Profit was 454.946 + 243.18 + 270.344 + 237.11 = $1,206 Mil.
Total Current Assets was $718 Mil.
Total Assets was $2,502 Mil.
Property, Plant and Equipment(Net PPE) was $55 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $968 Mil.
Total Current Liabilities was $750 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)
=(273.811 / 1213.856) / (326.575 / 1205.58)
=0.22557124 / 0.27088621
=0.8327

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)
=(264.019 / 1205.58) / (414.66 / 1213.856)
=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 - (613.653 + 49.963) / 2275.281) / (1 - (717.664 + 55.113) / 2502.384)
=0.70833668 / 0.69118369
=1.0248

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
=1213.856 / 1205.58
=1.0069

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))
=(20.61 / (20.61 + 55.113)) / (40.024 / (40.024 + 49.963))
=0.27217622 / 0.44477536
=0.6119

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)
=(908.056 / 1213.856) / (968.474 / 1205.58)
=0.74807555 / 0.8033262
=0.9312

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)
=((230.677 + 683.968) / 2275.281) / ((75 + 750.133) / 2502.384)
=0.40199211 / 0.32973876
=1.2191

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
=(78.492 - 81.004 - 243.052) / 2275.281
=-0.1079

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 -3.23 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 1.08680.38460.32732.71962.22871.09080.83161.11260.84170.8327
GMI 1111111111
AQI 10.55681.45241.00040.90930.94671.15540.88420.97151.0248
SGI 1.4580.81250.59210.79821.62690.90361.12961.30430.9531.0069
DEPI 1112.84920.98530.7881.55260.29123.67410.6119
SGAI 0.839317.23491.55131.31090.70861.17950.40820.76761.15670.9312
LVGI 0.68395.21310.43711.66230.80981.16140.63851.18310.87341.2191
TATA 0.18650.3337-0.7916-0.29-0.3638-0.2852-0.128-0.157-0.0813-0.1079
M-score -0.99-6.00-6.89-2.49-2.42-3.95-2.77-2.99-2.74-3.23

Fortress Investment Group LLC Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.42421.11260.82590.23850.2090.84171.23244.81785.02860.8327
GMI 1111111111
AQI 1.05560.88420.95210.92590.62670.97151.09261.08051.53221.0248
SGI 1.34821.30431.20641.22351.17820.9530.95020.94510.95291.0069
DEPI 10.291217.866915.583816.42573.67410.0560.06420.06090.6119
SGAI 0.57820.76760.83860.76070.86571.15671.14011.23461.13320.9312
LVGI 0.81851.18311.150.92851.44870.87340.88581.02050.77251.2191
TATA -0.2153-0.157-0.063-0.0199-0.0296-0.0813-0.1451-0.151-0.1101-0.1079
M-score -3.55-2.99-0.85-1.36-1.69-2.74-3.050.150.83-3.23
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