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Federal Realty Investment Trust (NYSE:FRT)
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.

Federal Realty Investment Trust has a M-score of -2.52 suggests that the company is not a manipulator.

FRT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Max: -1.67
Current: -2.52

-3.23
-1.67

During the past 13 years, the highest Beneish M-Score of Federal Realty Investment Trust was -1.67. The lowest was -3.23. And the median was -2.59.


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 * 0.9716+0.528 * 1.0071+0.404 * 1.0806+0.892 * 1.0844+0.115 * 1.0571
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0171+4.679 * -0.0269-0.327 * 1.0104
=-2.52

* 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 $152.0 Mil.
Revenue was 192.507 + 185.252 + 181.461 + 184.792 = $744.0 Mil.
Gross Profit was 130.456 + 129.009 + 128.171 + 122.959 = $510.6 Mil.
Total Current Assets was $173.1 Mil.
Total Assets was $4,911.7 Mil.
Property, Plant and Equipment(Net PPE) was $4,490.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $174.8 Mil.
Selling, General & Admin. Expense(SGA) was $35.6 Mil.
Total Current Liabilities was $228.3 Mil.
Long-Term Debt was $2,642.4 Mil.
Net Income was 67.954 + 52.447 + 43.632 + 46.186 = $210.2 Mil.
Non Operating Income was 0.43 + 0.36 + -18.666 + 0.22 = $-17.7 Mil.
Cash Flow from Operations was 98.685 + 87.502 + 91.662 + 81.986 = $359.8 Mil.
Accounts Receivable was $144.3 Mil.
Revenue was 176.377 + 170.938 + 167.947 + 170.828 = $686.1 Mil.
Gross Profit was 123.135 + 118.656 + 117.378 + 114.998 = $474.2 Mil.
Total Current Assets was $192.2 Mil.
Total Assets was $4,546.9 Mil.
Property, Plant and Equipment(Net PPE) was $4,141.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $170.8 Mil.
Selling, General & Admin. Expense(SGA) was $32.3 Mil.
Total Current Liabilities was $220.4 Mil.
Long-Term Debt was $2,409.7 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)
=(152.02 / 744.012) / (144.279 / 686.09)
=0.20432466 / 0.21029165
=0.9716

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)
=(129.009 / 686.09) / (130.456 / 744.012)
=0.69111487 / 0.68627253
=1.0071

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 - (173.066 + 4490.365) / 4911.709) / (1 - (192.23 + 4141.948) / 4546.87)
=0.05054819 / 0.04677767
=1.0806

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
=744.012 / 686.09
=1.0844

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))
=(170.814 / (170.814 + 4141.948)) / (174.796 / (174.796 + 4490.365))
=0.03960664 / 0.03746837
=1.0571

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)
=(35.645 / 744.012) / (32.316 / 686.09)
=0.04790917 / 0.04710169
=1.0171

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)
=((2642.366 + 228.309) / 4911.709) / ((2409.677 + 220.42) / 4546.87)
=0.58445543 / 0.57844121
=1.0104

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
=(210.219 - -17.656 - 359.835) / 4911.709
=-0.0269

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 -2.52 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.

Federal Realty Investment Trust Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.20121.11991.60380.92461.13930.89331.02730.95750.9716
GMI 01.02170.99520.86140.99311.13791.00461.01461.0071
AQI 0.31091.00831.71911.18810.85390.9911.00081.03131.0806
SGI 1.07121.07671.01991.02131.01721.09921.05221.07641.0844
DEPI 1.01041.00050.96430.97511.0880.96180.94431.02711.0571
SGAI 1.16280.9340.80811.0751.1780.97790.97520.93911.0171
LVGI 1.4111.01970.55661.15431.58410.98950.98320.95961.0104
TATA -0.0067-0.0324-0.0488-0.0418-0.0281-0.0376-0.0332-0.0379-0.0269
M-score -3.23-2.43-1.67-2.79-2.74-2.59-2.56-2.58-2.52

Federal Realty Investment Trust Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.97021.02911.05741.03731.02260.95750.95420.95290.9110.9716
GMI 1.19271.04631.01351.06341.11550.97470.96860.92440.88291.0071
AQI 0.94311.00080.89840.9491.01071.03131.47561.15611.18961.0806
SGI 1.06561.05031.0541.05431.07021.07641.07521.07851.08071.0844
DEPI 0.99040.94430.99821.00951.01771.02711.01321.0331.04321.0571
SGAI 0.90730.97690.99150.95040.99740.93910.95420.99020.99131.0171
LVGI 0.70140.98320.97290.95251.33330.95961.0080.99380.99791.0104
TATA -0.0338-0.0332-0.0334-0.0357-0.0364-0.0379-0.0351-0.0311-0.0334-0.0269
M-score -2.42-2.54-2.56-2.53-2.61-2.60-2.44-2.57-2.62-2.52
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