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Kimco Realty Corp (NYSE:KIM)
Beneish M-Score
-2.46 (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.

Kimco Realty Corp has a M-score of -2.48 suggests that the company is not a manipulator.

KIM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39   Max: 1.02
Current: -2.46

-3.39
1.02

During the past 13 years, the highest Beneish M-Score of Kimco Realty Corp was 1.02. The lowest was -3.39. And the median was -2.48.


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 Kimco Realty 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 * 0.6882+0.528 * 1.001+0.404 * 0.8915+0.892 * 1.1739+0.115 * 0.9317
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8556+4.679 * 0.0348-0.327 * 1.027
=-2.48

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $199 Mil.
Revenue was $1,167 Mil.
Gross Profit was $862 Mil.
Total Current Assets was $396 Mil.
Total Assets was $11,344 Mil.
Property, Plant and Equipment(Net PPE) was $9,453 Mil.
Depreciation, Depletion and Amortization(DDA) was $345 Mil.
Selling, General & Admin. Expense(SGA) was $123 Mil.
Total Current Liabilities was $115 Mil.
Long-Term Debt was $5,376 Mil.
Net Income was $894 Mil.
Non Operating Income was $5 Mil.
Cash Flow from Operations was $494 Mil.
Accounts Receivable was $246 Mil.
Revenue was $994 Mil.
Gross Profit was $735 Mil.
Total Current Assets was $682 Mil.
Total Assets was $10,261 Mil.
Property, Plant and Equipment(Net PPE) was $8,063 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General & Admin. Expense(SGA) was $122 Mil.
Total Current Liabilities was $241 Mil.
Long-Term Debt was $4,596 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)
=(199.076 / 1166.769) / (246.399 / 993.897)
=0.17062161 / 0.24791201
=0.6882

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)
=(735.28 / 993.897) / (862.292 / 1166.769)
=0.73979497 / 0.7390426
=1.001

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 - (396.175 + 9453.489) / 11344.171) / (1 - (682.258 + 8062.82) / 10261.4)
=0.13174228 / 0.14776951
=0.8915

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
=1166.769 / 993.897
=1.1739

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))
=(273.093 / (273.093 + 8062.82)) / (344.527 / (344.527 + 9453.489))
=0.03276102 / 0.03516294
=0.9317

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)
=(122.735 / 1166.769) / (122.201 / 993.897)
=0.1051922 / 0.12295137
=0.8556

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)
=((5376.31 + 115.182) / 11344.171) / ((4595.97 + 240.652) / 10261.4)
=0.4840805 / 0.47134134
=1.027

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
=(894.115 - 5.174 - 493.701) / 11344.171
=0.0348

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.

Kimco Realty Corp has a M-score of -2.48 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 local exchange's currency.

Kimco Realty Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.31150.8711.20311.15462.07660.93130.73971.09770.6882
GMI 00.98591.02530.99290.99460.98610.99491.00421.001
AQI 0.65190.91720.98461.09960.93230.97850.94710.77730.8915
SGI 1.14811.22261.00740.99520.98510.97411.08591.15361.1739
DEPI 0.92690.97251.02570.86340.99120.97351.02411.04910.9317
SGAI 1.17020.91480.9231.01411.10381.06960.95030.8310.8556
LVGI 1.49651.03360.8460.95741.02831.00381.01971.02351.027
TATA -0.031-0.031-0.0324-0.0343-0.0311-0.0219-0.0351-0.01950.0348
M-score -4.00-2.59-2.36-2.47-1.71-2.70-2.83-2.41-2.48
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