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GuruFocus has detected 6 Warning Signs with Macerich Co $MAC.
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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: -3.63   Max: -0.41
Current: -2.56

-3.63
-0.41

During the past 13 years, the highest Beneish M-Score of Macerich Co was -0.41. The lowest was -3.63. And the median was -2.56.


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 * 1.1868+0.528 * 1.0382+0.404 * 1.2116+0.892 * 0.8083+0.115 * 1.105
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1686+4.679 * -0.0363-0.327 * 1.0015
=-2.56

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $205 Mil.
Revenue was 272 + 253.367 + 259.904 + 256 = $1,041 Mil.
Gross Profit was 171.082 + 153.772 + 161.695 + 148.776 = $635 Mil.
Total Current Assets was $349 Mil.
Total Assets was $9,958 Mil.
Property, Plant and Equipment(Net PPE) was $7,357 Mil.
Depreciation, Depletion and Amortization(DDA) was $343 Mil.
Selling, General & Admin. Expense(SGA) was $28 Mil.
Total Current Liabilities was $427 Mil.
Long-Term Debt was $4,966 Mil.
Net Income was 37.128 + 13.73 + 45.222 + 420.915 = $517 Mil.
Non Operating Income was 4.827 + -5.782 + 22.319 + 439.252 = $461 Mil.
Cash Flow from Operations was 98.447 + 111.378 + 99.84 + 107.841 = $418 Mil.
Accounts Receivable was $214 Mil.
Revenue was 320.758 + 326.262 + 322.794 + 318.335 = $1,288 Mil.
Gross Profit was 206.813 + 210.3 + 208.678 + 190.203 = $816 Mil.
Total Current Assets was $342 Mil.
Total Assets was $11,236 Mil.
Property, Plant and Equipment(Net PPE) was $8,797 Mil.
Depreciation, Depletion and Amortization(DDA) was $455 Mil.
Selling, General & Admin. Expense(SGA) was $30 Mil.
Total Current Liabilities was $815 Mil.
Long-Term Debt was $5,261 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)
=(205.225 / 1041.271) / (213.93 / 1288.149)
=0.19709086 / 0.16607551
=1.1868

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)
=(815.994 / 1288.149) / (635.325 / 1041.271)
=0.63346243 / 0.61014376
=1.0382

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 - (349.222 + 7357.31) / 9958.148) / (1 - (341.829 + 8796.912) / 11235.584)
=0.22610791 / 0.18662519
=1.2116

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
=1041.271 / 1288.149
=0.8083

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))
=(454.81 / (454.81 + 8796.912)) / (342.543 / (342.543 + 7357.31))
=0.0491595 / 0.04448695
=1.105

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)
=(28.217 / 1041.271) / (29.87 / 1288.149)
=0.02709861 / 0.02318831
=1.1686

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)
=((4965.9 + 427.481) / 9958.148) / ((5260.75 + 815.382) / 11235.584)
=0.54160482 / 0.54079361
=1.0015

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
=(516.995 - 460.616 - 417.506) / 9958.148
=-0.0363

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 local exchange's currency.

Macerich Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.19480.82290.8681.06361.19230.81650.7431.2361.39031.1868
GMI 01.00231.02011.04060.9950.97310.97950.98120.94741.0382
AQI 0.54681.35811.03470.94961.14870.83650.83370.9951.3431.2116
SGI 0.98151.08170.91460.88320.96231.16471.29091.07361.16550.8083
DEPI 1.06360.85890.92491.0661.02071.05570.86511.4220.6731.105
SGAI 1.24980.921.71640.90391.05970.83011.0540.98640.87141.1686
LVGI 1.17451.0110.3631.80061.12531.0010.95870.96061.01721.0015
TATA -0.0401-0.0288-0.0368-0.033-0.0463-0.0339-0.0149-0.0335-0.0434-0.0363
M-score -3.31-2.56-2.75-2.92-2.54-2.71-2.62-2.30-2.09-2.56

Macerich Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.01941.2361.02041.04350.94041.39030.94290.98671.21971.1868
GMI 0.99180.98120.96790.95130.93650.94740.95870.98861.02341.0382
AQI 1.12950.9950.98621.05230.99111.3431.70271.49921.47771.2116
SGI 1.11821.07361.10321.1591.21211.16551.05760.94740.84480.8083
DEPI 0.98231.4221.32531.21851.14470.6730.66380.75690.85831.105
SGAI 0.99140.98640.98031.06471.08380.87140.91870.95511.03781.1686
LVGI 1.08070.96060.96980.97470.96151.01720.92520.9670.95881.0015
TATA -0.0222-0.0335-0.0393-0.0401-0.0414-0.0434-0.0436-0.0426-0.0408-0.0363
M-score -2.44-2.30-2.52-2.47-2.56-2.09-2.42-2.55-2.41-2.56
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