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Federal Realty Investment Trust (NYSE:FRT)
Beneish M-Score
-2.66 (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.

Federal Realty Investment Trust has a M-score of -2.66 suggests that the company is not a manipulator.

FRT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Max: -1.35
Current: -2.66

-3.36
-1.35

During the past 13 years, the highest Beneish M-Score of Federal Realty Investment Trust was -1.35. The lowest was -3.36. And the median was -2.55.


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 Federal Realty Investment Trust 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 * 0.9452+0.528 * 1.0012+0.404 * 0.6875+0.892 * 1.0822+0.115 * 1.0601
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.961+4.679 * -0.0226-0.327 * 0.9481
=-2.66

* 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 $155.4 Mil.
Revenue was 198.344 + 192.507 + 185.252 + 181.461 = $757.6 Mil.
Gross Profit was 155.525 + 130.456 + 129.009 + 128.171 = $543.2 Mil.
Total Current Assets was $175.1 Mil.
Total Assets was $5,125.5 Mil.
Property, Plant and Equipment(Net PPE) was $4,741.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $180.6 Mil.
Selling, General & Admin. Expense(SGA) was $34.8 Mil.
Total Current Liabilities was $248.8 Mil.
Long-Term Debt was $2,659.3 Mil.
Net Income was 76.955 + 67.954 + 52.447 + 43.632 = $241.0 Mil.
Non Operating Income was -0.683 + -0.431 + -0.851 + -19.823 = $-21.8 Mil.
Cash Flow from Operations was 100.508 + 98.685 + 87.502 + 91.662 = $378.4 Mil.
Accounts Receivable was $151.9 Mil.
Revenue was 184.792 + 176.377 + 170.938 + 167.947 = $700.1 Mil.
Gross Profit was 143.353 + 123.135 + 118.656 + 117.378 = $502.5 Mil.
Total Current Assets was $323.3 Mil.
Total Assets was $4,780.8 Mil.
Property, Plant and Equipment(Net PPE) was $4,174.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $168.9 Mil.
Selling, General & Admin. Expense(SGA) was $33.5 Mil.
Total Current Liabilities was $224.4 Mil.
Long-Term Debt was $2,636.7 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)
=(155.367 / 757.564) / (151.892 / 700.054)
=0.20508762 / 0.21697183
=0.9452

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)
=(130.456 / 700.054) / (155.525 / 757.564)
=0.7178332 / 0.71698365
=1.0012

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 - (175.083 + 4741.767) / 5125.457) / (1 - (323.329 + 4174.397) / 4780.75)
=0.04070018 / 0.05920075
=0.6875

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
=757.564 / 700.054
=1.0822

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))
=(168.948 / (168.948 + 4174.397)) / (180.611 / (180.611 + 4741.767))
=0.03889813 / 0.03669182
=1.0601

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)
=(34.802 / 757.564) / (33.465 / 700.054)
=0.04593935 / 0.04780346
=0.961

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)
=((2659.322 + 248.845) / 5125.457) / ((2636.733 + 224.448) / 4780.75)
=0.56739662 / 0.59847953
=0.9481

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
=(240.988 - -21.788 - 378.357) / 5125.457
=-0.0226

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.

Federal Realty Investment Trust has a M-score of -2.66 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.

Federal Realty Investment Trust Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.13231.19431.12561.60330.92061.14130.89321.03110.95750.9716
GMI 11.44241.01630.99510.9970.85750.98451.00091.17751.0071
AQI 1.06110.31091.00831.71911.18810.85390.9911.00081.03131.0806
SGI 1.09921.07731.07131.02021.02571.01541.09941.04831.07641.0844
DEPI 1.0611.01041.00050.96430.97511.0880.96180.94431.02711.0571
SGAI 0.97521.11240.97570.80791.07041.18010.97780.97870.93911.0171
LVGI 1.52171.4111.01970.55661.15431.58410.98950.98320.95961.0104
TATA -0.0244-0.0067-0.0324-0.0488-0.0418-0.0281-0.0362-0.032-0.0368-0.026
M-score -2.52-2.46-2.44-1.67-2.72-2.81-2.67-2.55-2.49-2.52

Federal Realty Investment Trust Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02911.05741.03731.02260.95750.95420.95290.9110.97160.9452
GMI 1.04631.01351.06341.11550.97470.92930.88770.84850.96841.0012
AQI 1.00080.89840.9491.01071.03131.47561.15611.18961.08060.6875
SGI 1.05031.0541.05431.07021.07641.07521.07851.08071.08441.0822
DEPI 0.94430.99821.00951.01771.02711.01321.0331.04321.05711.0601
SGAI 0.97690.99150.95040.99740.93910.95420.99020.99131.01710.961
LVGI 0.98320.97290.95251.33330.95961.0080.99380.99791.01040.9481
TATA -0.032-0.0323-0.0346-0.0353-0.0368-0.034-0.0301-0.0324-0.026-0.0226
M-score -2.53-2.55-2.52-2.60-2.60-2.45-2.58-2.64-2.54-2.66
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