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Prologis Inc (NYSE:PLD)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

PLD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.54   Max: 5.08
Current: -2.45

-3.54
5.08

During the past 13 years, the highest Beneish M-Score of Prologis Inc was 5.08. The lowest was -3.54. And the median was -2.54.


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 * 0.9664+0.404 * 0.8698+0.892 * 1.3083+0.115 * 0.8726
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7533+4.679 * -0.0359-0.327 * 1.1043
=-2.45

* 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 $0 Mil.
Revenue was 606.3 + 643.201 + 580.622 + 510.404 = $2,341 Mil.
Gross Profit was 434.426 + 466.197 + 419.003 + 364.69 = $1,684 Mil.
Total Current Assets was $370 Mil.
Total Assets was $31,376 Mil.
Property, Plant and Equipment(Net PPE) was $24,205 Mil.
Depreciation, Depletion and Amortization(DDA) was $961 Mil.
Selling, General & Admin. Expense(SGA) was $232 Mil.
Total Current Liabilities was $699 Mil.
Long-Term Debt was $11,687 Mil.
Net Income was 209.73 + 119.995 + 260.65 + 141.918 = $732 Mil.
Non Operating Income was 192.553 + 99.54 + 292.92 + 124.818 = $710 Mil.
Cash Flow from Operations was 266.27 + 313.595 + 293.926 + 274.357 = $1,148 Mil.
Accounts Receivable was $0 Mil.
Revenue was 462.847 + 450.865 + 415.151 + 460.089 = $1,789 Mil.
Gross Profit was 310.57 + 320.441 + 290.385 + 322.676 = $1,244 Mil.
Total Current Assets was $192 Mil.
Total Assets was $25,461 Mil.
Property, Plant and Equipment(Net PPE) was $18,923 Mil.
Depreciation, Depletion and Amortization(DDA) was $652 Mil.
Selling, General & Admin. Expense(SGA) was $236 Mil.
Total Current Liabilities was $460 Mil.
Long-Term Debt was $8,641 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 / 2340.527) / (0 / 1788.952)
=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)
=(1244.072 / 1788.952) / (1684.316 / 2340.527)
=0.69541944 / 0.71963109
=0.9664

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 - (369.737 + 24204.537) / 31375.748) / (1 - (192.013 + 18923.021) / 25460.821)
=0.21677488 / 0.24923733
=0.8698

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
=2340.527 / 1788.952
=1.3083

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))
=(651.989 / (651.989 + 18923.021)) / (960.565 / (960.565 + 24204.537))
=0.03330721 / 0.03817052
=0.8726

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)
=(232.454 / 2340.527) / (235.871 / 1788.952)
=0.09931695 / 0.1318487
=0.7533

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)
=((11687.171 + 698.678) / 31375.748) / ((8641.421 + 459.845) / 25460.821)
=0.39475868 / 0.35746161
=1.1043

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
=(732.293 - 709.831 - 1148.148) / 31375.748
=-0.0359

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 -2.45 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 1.49880.81591.0960.37841.03680.88360.723101
GMI 1.01121.14931.0570.99950.98430.9961.03670.98610.9832
AQI 13.15541.00341.00740.24760.72260.76341.79881.00460.938
SGI 0.91751.06780.88640.99952.42031.30830.87261.00591.2478
DEPI 0.0291163.57360.60520.81610.90751.09480.9149
SGAI 1.35391.0490.90461.07660.64430.89331.15171.07470.7705
LVGI 1.01121.13120.87280.90510.93731.04730.85810.99211.0166
TATA -0.0212-0.0637-0.0477-0.0168-0.0166-0.0298-0.0214-0.0289-0.0299
M-score 2.55-2.86-2.633.78-1.34-2.57-2.60-3.53-2.41

Prologis Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.7090.94891.0610.9904000011
GMI 1.03771.02570.99980.99070.98610.99470.99960.99180.98630.9664
AQI 1.79881.22111.30981.30091.00461.0240.79330.78170.9380.8698
SGI 0.88990.86670.93480.97011.00591.04911.04831.14771.24781.3083
DEPI 0.90751.161.03410.94611.09481.02281.34431.1730.91490.8726
SGAI 1.12931.21621.13591.11321.07470.95180.91780.83160.75440.7533
LVGI 0.85810.95431.00460.98450.99210.93331.0571.03181.01661.1043
TATA -0.0209-0.0163-0.0239-0.0248-0.029-0.0287-0.0225-0.0292-0.0301-0.0359
M-score -2.59-2.62-2.49-2.54-3.54-3.45-3.51-3.46-2.41-2.45
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