GOOD 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 13 years, the highest Beneish M-Score of Gladstone Commercial Corp was -2.20. The lowest was -5.21. And the median was -2.46.
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 Gladstone Commercial Corp 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 * 1||+||0.528 * 1.0053||+||0.404 * 0.9942||+||0.892 * 1.0316||+||0.115 * 0.9729|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.8257||+||4.679 * -0.0422||-||0.327 * 0.942|
|This Year (Dec16) TTM:||Last Year (Dec15) TTM:|
|Accounts Receivable was $0.00 Mil.|
Revenue was 22.009 + 21.589 + 21.247 + 21.527 = $86.37 Mil.
Gross Profit was 20.575 + 20.179 + 19.813 + 19.917 = $80.48 Mil.
Total Current Assets was $44.22 Mil.
Total Assets was $851.74 Mil.
Property, Plant and Equipment(Net PPE) was $690.09 Mil.
Depreciation, Depletion and Amortization(DDA) was $37.52 Mil.
Selling, General & Admin. Expense(SGA) was $9.91 Mil.
Total Current Liabilities was $9.01 Mil.
Long-Term Debt was $509.40 Mil.
Net Income was 2.293 + -0.073 + 0.883 + 0.853 = $3.96 Mil.
Non Operating Income was 0.272 + -0.152 + -0.352 + -1.071 = $-1.30 Mil.
Cash Flow from Operations was 11.346 + 11.983 + 9.05 + 8.782 = $41.16 Mil.
|Accounts Receivable was $0.00 Mil.
Revenue was 21.783 + 21.375 + 20.688 + 19.88 = $83.73 Mil.
Gross Profit was 20.239 + 19.763 + 19.51 + 18.918 = $78.43 Mil.
Total Current Assets was $44.33 Mil.
Total Assets was $827.18 Mil.
Property, Plant and Equipment(Net PPE) was $668.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.29 Mil.
Selling, General & Admin. Expense(SGA) was $11.64 Mil.
Total Current Liabilities was $9.11 Mil.
Long-Term Debt was $525.33 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)|
|=||(0 / 86.372)||/||(0 / 83.726)|
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)|
|=||(78.43 / 83.726)||/||(80.484 / 86.372)|
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 - (44.219 + 690.088) / 851.742)||/||(1 - (44.334 + 668.134) / 827.184)|
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))|
|=||(35.288 / (35.288 + 668.134))||/||(37.517 / (37.517 + 690.088))|
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)|
|=||(9.913 / 86.372)||/||(11.638 / 83.726)|
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)|
|=||((509.395 + 9.007) / 851.742)||/||((525.332 + 9.114) / 827.184)|
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|
|=||(3.956 - -1.303||-||41.161)||/||851.742|
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.
Gladstone Commercial Corp has a M-score of -2.60 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
Gladstone Commercial Corp Annual Data
Gladstone Commercial Corp Quarterly Data