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Macerich Co (NYSE:MAC)
Beneish M-Score
-2.42 (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.

Macerich Co has a M-score of -2.42 suggests that the company is not a manipulator.

MAC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Max: 11.4
Current: -2.42

-3.63
11.4

During the past 13 years, the highest Beneish M-Score of Macerich Co was 11.40. The lowest was -3.63. And the median was -2.55.


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 Macerich Co 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 * 0.9429+0.528 * 0.9587+0.404 * 1.7027+0.892 * 1.0576+0.115 * 0.6638
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9187+4.679 * -0.0436-0.327 * 0.9252
=-2.42

* 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 $113 Mil.
Revenue was 256 + 320.758 + 326.262 + 322.794 = $1,226 Mil.
Gross Profit was 148.776 + 206.813 + 210.3 + 208.678 = $775 Mil.
Total Current Assets was $262 Mil.
Total Assets was $10,211 Mil.
Property, Plant and Equipment(Net PPE) was $7,527 Mil.
Depreciation, Depletion and Amortization(DDA) was $424 Mil.
Selling, General & Admin. Expense(SGA) was $30 Mil.
Total Current Liabilities was $440 Mil.
Long-Term Debt was $4,659 Mil.
Net Income was 420.915 + 414.959 + 33.597 + 14.395 = $884 Mil.
Non Operating Income was 439.252 + 399.276 + 4.494 + -0.013 = $843 Mil.
Cash Flow from Operations was 107.841 + 126.726 + 140.772 + 110.749 = $486 Mil.
Accounts Receivable was $114 Mil.
Revenue was 318.335 + 322.909 + 263.492 + 254.337 = $1,159 Mil.
Gross Profit was 190.203 + 203.748 + 156.632 + 151.576 = $702 Mil.
Total Current Assets was $247 Mil.
Total Assets was $13,197 Mil.
Property, Plant and Equipment(Net PPE) was $11,111 Mil.
Depreciation, Depletion and Amortization(DDA) was $407 Mil.
Selling, General & Admin. Expense(SGA) was $31 Mil.
Total Current Liabilities was $647 Mil.
Long-Term Debt was $6,474 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)
=(113.188 / 1225.814) / (113.505 / 1159.073)
=0.09233701 / 0.0979274
=0.9429

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)
=(702.159 / 1159.073) / (774.567 / 1225.814)
=0.6057936 / 0.63187971
=0.9587

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 - (261.926 + 7526.652) / 10211.345) / (1 - (246.89 + 11110.841) / 13196.667)
=0.23726228 / 0.13934852
=1.7027

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
=1225.814 / 1159.073
=1.0576

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))
=(407.382 / (407.382 + 11110.841)) / (423.591 / (423.591 + 7526.652))
=0.03536848 / 0.05328026
=0.6638

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)
=(30.077 / 1225.814) / (30.957 / 1159.073)
=0.02453635 / 0.02670841
=0.9187

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)
=((4658.968 + 439.572) / 10211.345) / ((6474.354 + 647.161) / 13196.667)
=0.49930151 / 0.53964497
=0.9252

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
=(883.866 - 843.009 - 486.088) / 10211.345
=-0.0436

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.

Macerich Co has a M-score of -2.42 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.

Macerich Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.20921.08540.88510.88830.99771.09990.85380.8211.2360.8449
GMI 11.85270.90551.02571.04390.98130.97040.99270.98120.9474
AQI 0.98560.54681.35811.03470.94961.14870.83650.83370.9951.4086
SGI 1.08111.08041.00570.89370.94151.04311.11381.16811.07361.1655
DEPI 0.93671.04480.87430.92491.0660.98711.07410.87921.4220.673
SGAI 1.03391.13540.98951.75650.84790.97770.8681.16480.98640.8714
LVGI 0.87391.17451.0110.3630.68412.96181.0010.95870.96061.0189
TATA -0.0053-0.0401-0.0311-0.0355-0.0355-0.0399-0.0093-0.0179-0.0335-0.0433
M-score -2.22-2.33-2.65-2.75-2.56-3.13-2.61-2.68-2.30-2.56

Macerich Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.75860.81540.86111.01941.2361.02041.04350.94040.84490.9429
GMI 0.98290.98780.99450.99180.98120.96790.95130.93650.94740.9587
AQI 0.83370.88440.9191.12950.9950.98621.05230.99111.40861.7027
SGI 1.26421.23951.17961.11821.07361.10321.1591.21211.16551.0576
DEPI 0.86510.85240.93020.98231.4221.32531.21851.14470.6730.6638
SGAI 1.07621.05360.99910.99140.98640.98031.06471.08380.87140.9187
LVGI 0.95870.92861.01861.08070.96060.96980.97470.96151.01890.9252
TATA -0.0149-0.0133-0.0276-0.0222-0.0335-0.0393-0.0401-0.0414-0.0433-0.0436
M-score -2.63-2.55-2.63-2.44-2.30-2.52-2.47-2.56-2.56-2.42
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