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Kimco Realty Corp (NYSE:KIM)
Beneish M-Score
-2.56 (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 -2.56 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: -2.56

-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 -2.50.


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 * 0.6989+0.528 * 0.9945+0.404 * 0.926+0.892 * 1.1252+0.115 * 0.7997
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9202+4.679 * 0.0224-0.327 * 0.9441
=-2.56

* 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 $198 Mil.
Revenue was 297.202 + 300.87 + 288.382 + 294.061 = $1,181 Mil.
Gross Profit was 225.359 + 220.141 + 213.983 + 218.24 = $878 Mil.
Total Current Assets was $426 Mil.
Total Assets was $11,249 Mil.
Property, Plant and Equipment(Net PPE) was $9,346 Mil.
Depreciation, Depletion and Amortization(DDA) was $355 Mil.
Selling, General & Admin. Expense(SGA) was $122 Mil.
Total Current Liabilities was $117 Mil.
Long-Term Debt was $5,162 Mil.
Net Income was 140.713 + 379.201 + 77.572 + 127 = $724 Mil.
Non Operating Income was -0.17 + 2.577 + 1.06 + 1.386 = $5 Mil.
Cash Flow from Operations was 136.956 + -23.583 + 177.839 + 176.355 = $468 Mil.
Accounts Receivable was $252 Mil.
Revenue was 283.456 + 264.513 + 255.234 + 245.958 = $1,049 Mil.
Gross Profit was 209.928 + 193.418 + 189.644 + 182.757 = $776 Mil.
Total Current Assets was $578 Mil.
Total Assets was $11,734 Mil.
Property, Plant and Equipment(Net PPE) was $9,492 Mil.
Depreciation, Depletion and Amortization(DDA) was $286 Mil.
Selling, General & Admin. Expense(SGA) was $118 Mil.
Total Current Liabilities was $111 Mil.
Long-Term Debt was $5,721 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)
=(198.005 / 1180.515) / (251.785 / 1049.161)
=0.16772764 / 0.239987
=0.6989

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)
=(220.141 / 1049.161) / (225.359 / 1180.515)
=0.73939748 / 0.74350855
=0.9945

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 - (425.721 + 9346.355) / 11249.361) / (1 - (578.015 + 9491.884) / 11733.888)
=0.13132168 / 0.14181054
=0.926

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
=1180.515 / 1049.161
=1.1252

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))
=(285.996 / (285.996 + 9491.884)) / (354.814 / (354.814 + 9346.355))
=0.02924929 / 0.03657436
=0.7997

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)
=(121.959 / 1180.515) / (117.786 / 1049.161)
=0.10331 / 0.11226685
=0.9202

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)
=((5162.462 + 116.631) / 11249.361) / ((5721.251 + 111.357) / 11733.888)
=0.46927937 / 0.49707377
=0.9441

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
=(724.486 - 4.853 - 467.567) / 11249.361
=0.0224

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 -2.56 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.

Kimco Realty Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.31170.95661.08921.07932.00670.90130.78251.20620.6882
GMI 1.38871.00690.99361.00170.99720.98390.98961.00041.001
AQI 0.65190.91720.98461.09960.93230.97850.94710.77730.8007
SGI 1.14761.11321.11291.06461.01941.00661.02641.04991.1739
DEPI 0.92690.97251.02570.86340.99120.97351.02411.04910.9317
SGAI 1.16521.01940.83920.93171.06851.03981.00110.910.8556
LVGI 1.49651.03360.8460.95741.02831.00381.01971.02351.0551
TATA -0.0294-0.0406-0.0318-0.0343-0.0291-0.022-0.0352-0.01950.0348
M-score -3.25-2.66-2.37-2.46-1.72-2.70-2.85-2.41-2.53

Kimco Realty Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.73170.70170.70830.76911.12211.16280.88780.89450.68820.6989
GMI 0.99440.99790.99781.00321.0031.0021.00180.99971.0010.9945
AQI 0.94710.90740.87030.89310.77730.72240.7790.75710.80070.926
SGI 1.09771.0951.11761.16151.12861.18971.21821.20971.17391.1252
DEPI 1.02411.01261.05311.0641.04911.14811.04710.95120.93170.7997
SGAI 0.93990.96820.92710.870.84930.75810.75850.76850.85560.9202
LVGI 1.01971.33541.22911.03671.02351.08991.03831.05351.05510.9441
TATA -0.0351-0.0359-0.0337-0.0112-0.01950.00350.0039-0.0060.03480.0224
M-score -2.82-2.98-2.91-2.62-2.41-2.23-2.42-2.50-2.53-2.56
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