Lennar Beneish M-Score Historical Data
The historical data trend for Lennar's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Lennar Annual Data
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Trend |
Nov14 |
Nov15 |
Nov16 |
Nov17 |
Nov18 |
Nov19 |
Nov20 |
Nov21 |
Nov22 |
Nov23 |
| Beneish M-Score |
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-2.32 |
-2.79 |
-2.21 |
-2.09 |
-2.37 |
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Lennar Quarterly Data
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May19 |
Aug19 |
Nov19 |
Feb20 |
May20 |
Aug20 |
Nov20 |
Feb21 |
May21 |
Aug21 |
Nov21 |
Feb22 |
May22 |
Aug22 |
Nov22 |
Feb23 |
May23 |
Aug23 |
Nov23 |
Feb24 |
| Beneish M-Score |
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-2.27 |
-2.41 |
-2.44 |
-2.37 |
-2.02 |
Competitive Comparison
For the Residential Construction subindustry, Lennar's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lennar Beneish M-Score Distribution
For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Lennar's Beneish M-Score falls into.
Lennar Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Lennar 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 * 1.4148 | + | 0.528 * 1.1842 | + | 0.404 * 0.9418 | + | 0.892 * 1.0323 | + | 0.115 * 1 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.2083 | + | 4.679 * -0.00845 | - | 0.327 * 0.8337 |
| = | -2.02 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Feb24) TTM: | Last Year (Feb23) TTM: |
Total Receivables was $3,328 Mil.
Revenue was 7312.93 + 10968.183 + 8729.603 + 8045.151 = $35,056 Mil.
Gross Profit was 1075.215 + 2046.865 + 1603.415 + 1334.665 = $6,060 Mil.
Total Current Assets was $31,011 Mil.
Total Assets was $38,951 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $117 Mil.
Selling, General, & Admin. Expense(SGA) was $533 Mil.
Total Current Liabilities was $1,565 Mil.
Long-Term Debt & Capital Lease Obligation was $4,395 Mil.
Net Income was 719.334 + 1361.287 + 1108.996 + 871.694 = $4,061 Mil.
Non Operating Income was 12.892 + -126.46 + -14.11 + -51.292 = $-179 Mil.
Cash Flow from Operations was 367.867 + 2589.197 + 951.865 + 660.471 = $4,569 Mil.
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Total Receivables was $2,279 Mil.
Revenue was 6490.429 + 10174.367 + 8934.431 + 8358.696 = $33,958 Mil.
Gross Profit was 956.039 + 1946.132 + 2075.524 + 1973.924 = $6,952 Mil.
Total Current Assets was $28,657 Mil.
Total Assets was $36,573 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $87 Mil.
Selling, General, & Admin. Expense(SGA) was $427 Mil.
Total Current Liabilities was $1,491 Mil.
Long-Term Debt & Capital Lease Obligation was $5,222 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (3328.252 / 35055.867) | / | (2278.759 / 33957.923) |
| = | 0.094941 | / | 0.067105 |
| | = | 1.4148 |
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) |
| = | (6951.619 / 33957.923) | / | (6060.16 / 35055.867) |
| = | 0.204713 | / | 0.172871 |
| | = | 1.1842 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (31011.456 + 0) / 38951.199) | / | (1 - (28657.081 + 0) / 36573.154) |
| = | 0.203838 | / | 0.216445 |
| | = | 0.9418 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 35055.867 | / | 33957.923 |
| | = | 1.0323 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (87.291 / (87.291 + 0)) | / | (116.998 / (116.998 + 0)) |
| = | 1 | / | 1 |
| | = | 1 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (532.553 / 35055.867) | / | (426.943 / 33957.923) |
| = | 0.015192 | / | 0.012573 |
| | = | 1.2083 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((4394.622 + 1565.464) / 38951.199) | / | ((5221.801 + 1490.808) / 36573.154) |
| = | 0.153014 | / | 0.183539 |
| | = | 0.8337 |
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 |
| = | (4061.311 - -178.97 | - | 4569.4) | / | 38951.199 |
| | = | -0.00845 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Lennar has a M-score of -2.02 suggests that the company is unlikely to be a manipulator.
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