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Federal Realty Investment Trust (NYSE:FRT)
Beneish M-Score
-2.62 (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 -2.62 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: -2.62

-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 * 0.9169+0.528 * 1.0057+0.404 * 0.8623+0.892 * 1.0848+0.115 * 1.015
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9191+4.679 * -0.0248-0.327 * 0.9678
=-2.62

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $156.0 Mil.
Revenue was 197.981 + 198.344 + 192.507 + 185.252 = $774.1 Mil.
Gross Profit was 161.003 + 155.525 + 130.456 + 129.009 = $576.0 Mil.
Total Current Assets was $174.7 Mil.
Total Assets was $5,188.5 Mil.
Property, Plant and Equipment(Net PPE) was $4,806.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $186.4 Mil.
Selling, General & Admin. Expense(SGA) was $34.5 Mil.
Total Current Liabilities was $255.8 Mil.
Long-Term Debt was $2,665.0 Mil.
Net Income was 55.941 + 76.955 + 67.954 + 52.447 = $253.3 Mil.
Non Operating Income was -1.558 + -0.683 + -0.431 + -0.851 = $-3.5 Mil.
Cash Flow from Operations was 98.728 + 100.508 + 98.685 + 87.502 = $385.4 Mil.
Accounts Receivable was $156.9 Mil.
Revenue was 181.461 + 184.792 + 176.377 + 170.938 = $713.6 Mil.
Gross Profit was 148.838 + 143.353 + 123.135 + 118.656 = $534.0 Mil.
Total Current Assets was $179.1 Mil.
Total Assets was $4,733.8 Mil.
Property, Plant and Equipment(Net PPE) was $4,335.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $170.7 Mil.
Selling, General & Admin. Expense(SGA) was $34.6 Mil.
Total Current Liabilities was $213.8 Mil.
Long-Term Debt was $2,539.5 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)
=(156.049 / 774.084) / (156.895 / 713.568)
=0.20159182 / 0.21987393
=0.9169

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)
=(533.982 / 713.568) / (575.993 / 774.084)
=0.74832672 / 0.74409625
=1.0057

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 - (174.671 + 4806.84) / 5188.468) / (1 - (179.07 + 4335.782) / 4733.838)
=0.03988788 / 0.04625972
=0.8623

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
=774.084 / 713.568
=1.0848

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))
=(170.726 / (170.726 + 4335.782)) / (186.375 / (186.375 + 4806.84))
=0.03788432 / 0.03732565
=1.015

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)
=(34.539 / 774.084) / (34.64 / 713.568)
=0.04461919 / 0.04854478
=0.9191

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)
=((2664.953 + 255.781) / 5188.468) / ((2539.505 + 213.837) / 4733.838)
=0.56292802 / 0.58162996
=0.9678

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
=(253.297 - -3.523 - 385.423) / 5188.468
=-0.0248

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 -2.62 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 1.13231.20121.11991.60380.92461.13930.89331.02730.95750.9716
GMI 11.43421.02170.99520.86140.99311.13791.00461.01461.0071
AQI 1.06110.31091.00831.71911.18810.85390.9911.00081.03131.0806
SGI 1.09921.07121.07671.01991.02131.01721.09921.05221.07641.0844
DEPI 1.0611.01041.00050.96430.97511.0880.96180.94431.02711.0571
SGAI 0.97521.16280.9340.80811.0751.1780.97790.97520.93911.0171
LVGI 1.52171.4111.01970.55661.15431.58410.98950.98320.95961.0104
TATA -0.0244-0.0067-0.0324-0.0488-0.0404-0.0267-0.0362-0.032-0.0368-0.026
M-score -2.52-2.47-2.43-1.67-2.78-2.74-2.59-2.55-2.58-2.52

Federal Realty Investment Trust Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.05741.03731.02260.95750.95420.95290.9110.97160.94520.9169
GMI 1.01351.06341.11550.97470.92930.85330.81630.93210.96451.0057
AQI 0.89840.9491.01071.03131.47561.15611.18961.08060.68750.8623
SGI 1.0541.05431.07021.07641.07521.07851.08071.08441.08221.0848
DEPI 0.99821.00951.01771.02711.01321.0331.04321.05711.06011.015
SGAI 0.99150.95040.99740.93910.95420.99020.99131.01710.9610.9191
LVGI 0.97290.95251.33330.95961.0080.99380.99791.01040.94810.9678
TATA -0.0323-0.0346-0.0353-0.0368-0.034-0.0301-0.0324-0.026-0.0226-0.0248
M-score -2.55-2.52-2.60-2.60-2.45-2.60-2.65-2.56-2.68-2.62
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