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Macerich Co (NYSE:MAC)
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.

Macerich Co has a M-score of -2.56 suggests that the company is not a manipulator.

MAC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.8   Max: 11.38
Current: -2.56

-3.8
11.38

During the past 13 years, the highest Beneish M-Score of Macerich Co was 11.38. The lowest was -3.80. And the median was -2.68.


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 * 0.9404+0.528 * 0.9365+0.404 * 0.9911+0.892 * 1.2121+0.115 * 1.1447
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0838+4.679 * -0.0414-0.327 * 0.9615
=-2.56

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $123 Mil.
Revenue was 326.262 + 322.794 + 318.335 + 322.909 = $1,290 Mil.
Gross Profit was 210.3 + 208.678 + 190.203 + 203.748 = $813 Mil.
Total Current Assets was $228 Mil.
Total Assets was $13,350 Mil.
Property, Plant and Equipment(Net PPE) was $11,031 Mil.
Depreciation, Depletion and Amortization(DDA) was $459 Mil.
Selling, General & Admin. Expense(SGA) was $35 Mil.
Total Current Liabilities was $616 Mil.
Long-Term Debt was $6,826 Mil.
Net Income was 33.597 + 14.395 + 24.611 + 1429.221 = $1,502 Mil.
Non Operating Income was 4.494 + -0.013 + 31.427 + 1501.638 = $1,538 Mil.
Cash Flow from Operations was 140.772 + 110.749 + 162.13 + 103.8 = $517 Mil.
Accounts Receivable was $108 Mil.
Revenue was 263.492 + 254.337 + 264.512 + 282.14 = $1,064 Mil.
Gross Profit was 156.632 + 151.576 + 151.364 + 168.522 = $628 Mil.
Total Current Assets was $181 Mil.
Total Assets was $9,206 Mil.
Property, Plant and Equipment(Net PPE) was $7,571 Mil.
Depreciation, Depletion and Amortization(DDA) was $363 Mil.
Selling, General & Admin. Expense(SGA) was $26 Mil.
Total Current Liabilities was $407 Mil.
Long-Term Debt was $4,931 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)
=(123.067 / 1290.3) / (107.968 / 1064.481)
=0.09537859 / 0.10142783
=0.9404

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)
=(208.678 / 1064.481) / (210.3 / 1290.3)
=0.59004717 / 0.630031
=0.9365

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 - (227.64 + 11031.476) / 13350.181) / (1 - (180.568 + 7570.636) / 9206.108)
=0.15663196 / 0.15803682
=0.9911

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
=1290.3 / 1064.481
=1.2121

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))
=(363.123 / (363.123 + 7570.636)) / (459.443 / (459.443 + 11031.476))
=0.04576935 / 0.03998314
=1.1447

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)
=(34.733 / 1290.3) / (26.439 / 1064.481)
=0.02691855 / 0.02483746
=1.0838

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)
=((6826.158 + 616.262) / 13350.181) / ((4930.539 + 407.174) / 9206.108)
=0.55747709 / 0.57980126
=0.9615

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
=(1501.824 - 1537.546 - 517.451) / 13350.181
=-0.0414

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 -2.56 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.

Macerich Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.19480.82290.8681.06361.19230.81650.7431.2360.8449
GMI 01.00231.02011.04060.9950.97310.97950.98120.9474
AQI 0.54681.35811.03470.94961.14870.83650.83370.9951.4086
SGI 0.98151.08170.91460.88320.96231.16471.29091.07361.1655
DEPI 1.06360.85890.92491.0661.02071.05570.86511.4220.6597
SGAI 1.24980.921.71640.90391.05970.83011.0540.98640.8714
LVGI 1.17451.0110.3630.68412.96181.0010.95870.96061.0189
TATA -0.0419-0.0326-0.0274-0.033-0.0463-0.0339-0.0149-0.03350.0047
M-score -3.32-2.58-2.70-2.55-3.15-2.71-2.62-2.30-2.34

Macerich Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.67930.75860.81540.86111.01941.2361.02041.04350.94040.8449
GMI 0.98820.98290.98780.99450.99180.98120.96790.95130.93650.9474
AQI 0.76230.83370.88440.9191.12950.9950.98621.05230.99111.4086
SGI 1.28721.26421.23951.17961.11821.07361.10321.1591.21211.1655
DEPI 1.06380.86510.85240.93020.98231.4221.32531.21851.14470.6716
SGAI 0.9051.07621.05360.99910.99140.98640.98031.06471.08380.8714
LVGI 1.05590.95870.92861.01861.08070.96060.96980.97470.96151.0189
TATA -0.0374-0.0149-0.0133-0.0276-0.0222-0.0335-0.0393-0.0401-0.0414-0.0321
M-score -2.79-2.63-2.55-2.63-2.44-2.30-2.52-2.47-2.56-2.51
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