FOR 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 12 years, the highest Beneish M-Score of Forestar Group Inc was 9.21. The lowest was -16.35. And the median was -2.13.
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 Forestar Group 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 * 0.5534||+||0.528 * -22.9492||+||0.404 * 1.3138||+||0.892 * 0.7165||+||0.115 * 0.6899|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.3491||+||4.679 * -0.1199||-||0.327 * 1.0893|
|This Year (Jun15) TTM:||Last Year (Jun14) TTM:|
|Accounts Receivable was $18.5 Mil.|
Revenue was 57.43 + 47.805 + 80.316 + 58.84 = $244.4 Mil.
Gross Profit was -35.009 + 17.289 + -6.259 + 19.606 = $-4.4 Mil.
Total Current Assets was $732.7 Mil.
Total Assets was $1,192.3 Mil.
Property, Plant and Equipment(Net PPE) was $235.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.1 Mil.
Selling, General & Admin. Expense(SGA) was $23.3 Mil.
Total Current Liabilities was $59.2 Mil.
Long-Term Debt was $434.8 Mil.
Net Income was -34.507 + -8.158 + -11.8 + 5.227 = $-49.2 Mil.
Non Operating Income was 7.205 + 5.138 + 6.849 + 3.912 = $23.1 Mil.
Cash Flow from Operations was 1.253 + -18.766 + 70.696 + 17.391 = $70.6 Mil.
|Accounts Receivable was $46.8 Mil.
Revenue was 83.013 + 84.605 + 98.388 + 75.107 = $341.1 Mil.
Gross Profit was 33.261 + 35.025 + 39.181 + 32.608 = $140.1 Mil.
Total Current Assets was $783.5 Mil.
Total Assets was $1,222.4 Mil.
Property, Plant and Equipment(Net PPE) was $263.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.3 Mil.
Selling, General & Admin. Expense(SGA) was $24.1 Mil.
Total Current Liabilities was $64.6 Mil.
Long-Term Debt was $400.3 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)|
|=||(18.54 / 244.391)||/||(46.763 / 341.113)|
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)|
|=||(17.289 / 341.113)||/||(-35.009 / 244.391)|
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 - (732.688 + 235.315) / 1192.319)||/||(1 - (783.539 + 263.769) / 1222.352)|
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))|
|=||(34.33 / (34.33 + 263.769))||/||(47.148 / (47.148 + 235.315))|
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)|
|=||(23.272 / 244.391)||/||(24.077 / 341.113)|
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)|
|=||((434.84 + 59.191) / 1192.319)||/||((400.328 + 64.618) / 1222.352)|
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|
|=||(-49.238 - 23.104||-||70.574)||/||1192.319|
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.
Forestar Group Inc has a M-score of -16.35 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
Forestar Group Inc Annual Data
Forestar Group Inc Quarterly Data