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Prologis Inc (NYSE:PLD)
Beneish M-Score
-2.37 (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.

Prologis Inc has a M-score of -2.38 suggests that the company is not a manipulator.

PLD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Max: 6.64
Current: -2.37

-3.51
6.64

During the past 13 years, the highest Beneish M-Score of Prologis Inc was 6.64. The lowest was -3.51. And the median was -2.51.


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 Prologis Inc 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+0.528 * 0.9738+0.404 * 0.9552+0.892 * 1.3224+0.115 * 0.6792
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7398+4.679 * -0.037-0.327 * 0.9554
=-2.38

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $0 Mil.
Revenue was 602.155 + 606.3 + 643.201 + 580.622 = $2,432 Mil.
Gross Profit was 433.564 + 434.426 + 466.197 + 419.003 = $1,753 Mil.
Total Current Assets was $332 Mil.
Total Assets was $30,746 Mil.
Property, Plant and Equipment(Net PPE) was $24,035 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,001 Mil.
Selling, General & Admin. Expense(SGA) was $232 Mil.
Total Current Liabilities was $627 Mil.
Long-Term Debt was $11,139 Mil.
Net Income was 277.079 + 209.73 + 119.995 + 260.65 = $867 Mil.
Non Operating Income was 233.513 + 192.553 + 99.54 + 292.92 = $819 Mil.
Cash Flow from Operations was 311.821 + 266.27 + 313.595 + 293.926 = $1,186 Mil.
Accounts Receivable was $0 Mil.
Revenue was 510.404 + 462.847 + 450.865 + 415.151 = $1,839 Mil.
Gross Profit was 364.69 + 315.552 + 320.441 + 290.385 = $1,291 Mil.
Total Current Assets was $351 Mil.
Total Assets was $31,602 Mil.
Property, Plant and Equipment(Net PPE) was $24,388 Mil.
Depreciation, Depletion and Amortization(DDA) was $681 Mil.
Selling, General & Admin. Expense(SGA) was $238 Mil.
Total Current Liabilities was $537 Mil.
Long-Term Debt was $12,121 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)
=(0 / 2432.278) / (0 / 1839.267)
=0 / 0
=1

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)
=(1291.068 / 1839.267) / (1753.19 / 2432.278)
=0.70194703 / 0.72080165
=0.9738

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 - (332.221 + 24035.212) / 30745.934) / (1 - (351.025 + 24387.611) / 31602.397)
=0.20745836 / 0.21719115
=0.9552

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
=2432.278 / 1839.267
=1.3224

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))
=(680.6 / (680.6 + 24387.611)) / (1000.759 / (1000.759 + 24035.212))
=0.02714992 / 0.03997285
=0.6792

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)
=(232.361 / 2432.278) / (237.505 / 1839.267)
=0.09553225 / 0.12913025
=0.7398

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)
=((11139.415 + 627.441) / 30745.934) / ((12121.305 + 537.432) / 31602.397)
=0.38271259 / 0.40056256
=0.9554

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
=(867.454 - 818.526 - 1185.612) / 30745.934
=-0.037

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.

Prologis Inc has a M-score of -2.38 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.

Prologis Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.45720.84321.06311.07610.36460.88360.85870.80220
GMI 1.16840.99841.05650.99950.98430.9961.03670.98610.9832
AQI 13.15541.00341.0035-0.6192-0.29010.76341.78790.99890.9491
SGI 0.94371.03320.91390.99952.42031.30830.87261.00591.2478
DEPI 0.0291163.57360.60520.81610.90751.09480.9149
SGAI 1.32721.0750.87751.07660.64430.89331.15171.07470.7705
LVGI 1.01121.13120.87280.95870.88481.04730.8650.98681.0139
TATA -0.0212-0.0636-0.0477-0.034-0.0166-0.0298-0.0214-0.0289-0.0299
M-score 2.62-2.95-2.633.97-2.35-2.57-2.48-2.80-3.32

Prologis Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.97581.09171.02110.8052000011
GMI 1.02550.99990.99150.9860.99090.9960.98860.98320.97020.9738
AQI 1.22111.30981.30090.99891.0240.79330.78170.94910.86980.9552
SGI 0.84280.90850.94091.00211.05171.0561.1611.24781.30831.3224
DEPI 1.161.03410.94611.09481.02281.34431.1730.91490.87260.6792
SGAI 1.25061.16881.14771.07870.96960.93060.83960.77050.73770.7398
LVGI 0.95431.00460.98450.98680.93331.0571.03181.01391.10430.9554
TATA -0.0171-0.0247-0.0257-0.0289-0.0286-0.0224-0.0291-0.0301-0.0359-0.037
M-score -2.63-2.49-2.54-2.80-3.45-3.51-3.45-3.32-2.44-2.38
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