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Kimco Realty Corp (NYSE:KIM)
Beneish M-Score
-2.41 (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 -2.41 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: -2.41

-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 -2.49.


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 * 0.9118+0.528 * 0.9905+0.404 * 0.8354+0.892 * 1.0735+0.115 * 0.8436
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.965+4.679 * 0.033-0.327 * 0.9454
=-2.41

* 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 $197 Mil.
Revenue was 291.488 + 297.202 + 300.87 + 288.382 = $1,178 Mil.
Gross Profit was 219.746 + 225.359 + 220.141 + 213.983 = $879 Mil.
Total Current Assets was $541 Mil.
Total Assets was $11,392 Mil.
Property, Plant and Equipment(Net PPE) was $9,465 Mil.
Depreciation, Depletion and Amortization(DDA) was $357 Mil.
Selling, General & Admin. Expense(SGA) was $123 Mil.
Total Current Liabilities was $117 Mil.
Long-Term Debt was $5,189 Mil.
Net Income was 203.409 + 140.713 + 379.201 + 77.572 = $801 Mil.
Non Operating Income was -1.656 + -0.17 + 2.577 + 1.06 = $2 Mil.
Cash Flow from Operations was 78.891 + 136.956 + -23.583 + 231.289 = $424 Mil.
Accounts Receivable was $201 Mil.
Revenue was 294.061 + 283.456 + 264.513 + 255.234 = $1,097 Mil.
Gross Profit was 218.24 + 209.928 + 193.418 + 189.644 = $811 Mil.
Total Current Assets was $371 Mil.
Total Assets was $11,467 Mil.
Property, Plant and Equipment(Net PPE) was $9,427 Mil.
Depreciation, Depletion and Amortization(DDA) was $299 Mil.
Selling, General & Admin. Expense(SGA) was $118 Mil.
Total Current Liabilities was $111 Mil.
Long-Term Debt was $5,538 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)
=(196.517 / 1177.942) / (200.758 / 1097.264)
=0.16683079 / 0.18296235
=0.9118

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)
=(811.23 / 1097.264) / (879.229 / 1177.942)
=0.73932071 / 0.74641111
=0.9905

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 - (541.338 + 9465.294) / 11392.432) / (1 - (370.841 + 9426.682) / 11467.304)
=0.12164216 / 0.14561234
=0.8354

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
=1177.942 / 1097.264
=1.0735

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))
=(298.521 / (298.521 + 9426.682)) / (357.412 / (357.412 + 9465.294))
=0.03069561 / 0.03638631
=0.8436

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)
=(122.58 / 1177.942) / (118.32 / 1097.264)
=0.10406285 / 0.10783184
=0.965

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)
=((5188.817 + 116.857) / 11392.432) / ((5537.772 + 111.455) / 11467.304)
=0.46571917 / 0.49263776
=0.9454

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
=(800.895 - 1.811 - 423.553) / 11392.432
=0.033

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 -2.41 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 0.31150.8711.20311.15462.07660.93130.73971.09770.6882
GMI 00.98591.02530.99290.99460.98610.99491.00421.001
AQI 0.65190.91720.98461.09960.93230.97850.94710.77730.8007
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 1.49651.03360.8460.95741.02831.00381.01971.02351.0551
TATA -0.031-0.031-0.0324-0.0343-0.0311-0.0219-0.0351-0.01950.0348
M-score -4.00-2.59-2.36-2.47-1.71-2.70-2.83-2.41-2.53

Kimco Realty Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.70170.70830.76911.12211.16280.88780.89450.68820.69890.9118
GMI 0.99790.99781.00321.0031.0021.00180.99971.0010.99450.9905
AQI 0.90740.87030.89310.77730.72240.7790.75710.80070.9260.8354
SGI 1.0951.11761.16151.12861.18971.21821.20971.17391.12521.0735
DEPI 1.01261.05311.0641.04911.14811.04710.95120.93170.79970.8436
SGAI 0.96820.92710.870.84930.75810.75850.76850.85560.92020.965
LVGI 1.33541.22911.03671.02351.08991.03831.05351.05510.94410.9454
TATA -0.0359-0.0337-0.0112-0.01950.00350.0086-0.0060.03480.02240.033
M-score -2.98-2.91-2.62-2.41-2.23-2.40-2.50-2.53-2.56-2.41
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