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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 * 0.8449+0.528 * 0.9474+0.404 * 1.4086+0.892 * 1.1655+0.115 * 0.673
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8714+4.679 * -0.0433-0.327 * 1.0189
=-2.56

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $130 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 $258 Mil.
Total Assets was $11,259 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 $5,284 Mil.
Net Income was 414.959 + 33.597 + 14.395 + 24.611 = $488 Mil.
Non Operating Income was 399.276 + 4.494 + -0.013 + 31.427 = $435 Mil.
Cash Flow from Operations was 126.726 + 140.772 + 110.749 + 162.13 = $540 Mil.
Accounts Receivable was $132 Mil.
Revenue was 322.909 + 263.492 + 254.337 + 264.512 = $1,105 Mil.
Gross Profit was 203.748 + 156.632 + 151.576 + 151.364 = $663 Mil.
Total Current Assets was $230 Mil.
Total Assets was $13,122 Mil.
Property, Plant and Equipment(Net PPE) was $11,068 Mil.
Depreciation, Depletion and Amortization(DDA) was $379 Mil.
Selling, General & Admin. Expense(SGA) was $29 Mil.
Total Current Liabilities was $684 Mil.
Long-Term Debt was $6,292 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)
=(130.002 / 1288.149) / (132.026 / 1105.25)
=0.10092155 / 0.11945352
=0.8449

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)
=(210.3 / 1105.25) / (206.813 / 1288.149)
=0.60015381 / 0.63346243
=0.9474

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 - (257.901 + 8796.912) / 11258.576) / (1 - (230.463 + 11067.89) / 13121.778)
=0.19574083 / 0.13896173
=1.4086

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
=1288.149 / 1105.25
=1.1655

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))
=(378.702 / (378.702 + 11067.89)) / (454.81 / (454.81 + 8796.912))
=0.03308426 / 0.0491595
=0.673

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)
=(29.87 / 1288.149) / (29.412 / 1105.25)
=0.02318831 / 0.02661117
=0.8714

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)
=((5283.742 + 815.382) / 11258.576) / ((6292.4 + 684.122) / 13121.778)
=0.54173139 / 0.53167505
=1.0189

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
=(487.562 - 435.184 - 540.377) / 11258.576
=-0.0433

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 1.20921.08540.88510.88830.99771.09990.85380.8211.2360.8449
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 0.75860.81540.86111.01941.2361.02041.04350.94040.8449
GMI 0.98290.98780.99450.99180.98120.96790.95130.93650.9474
AQI 0.83370.88440.9191.12950.9950.98621.05230.99111.4086
SGI 1.26421.23951.17961.11821.07361.10321.1591.21211.1655
DEPI 0.86510.85240.93020.98231.4221.32531.21851.14470.673
SGAI 1.07621.05360.99910.99140.98640.98031.06471.08380.8714
LVGI 0.95870.92861.01861.08070.96060.96980.97470.96151.0189
TATA -0.0149-0.0133-0.0276-0.0222-0.0335-0.0393-0.0401-0.0414-0.0433
M-score -2.63-2.55-2.63-2.44-2.30-2.52-2.47-2.56-2.56
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