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Prologis Inc (NYSE:PLD)
Beneish M-Score
-2.54 (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 -2.54 suggests that the company is not a manipulator.

PLD' s 10-Year Beneish M-Score Range
Min: -3.13   Max: 11.09
Current: -2.54

-3.13
11.09

During the past 13 years, the highest Beneish M-Score of Prologis Inc was 11.09. The lowest was -3.13. And the median was -2.48.


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 * 1.0211+0.528 * 0.9915+0.404 * 1.3009+0.892 * 0.9409+0.115 * 0.9461
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1477+4.679 * -0.0257-0.327 * 0.9845
=-2.54

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $132 Mil.
Revenue was 415.151 + 460.089 + 434.682 + 416.746 = $1,727 Mil.
Gross Profit was 290.385 + 322.676 + 300.002 + 295.739 = $1,209 Mil.
Total Current Assets was $444 Mil.
Total Assets was $24,072 Mil.
Property, Plant and Equipment(Net PPE) was $16,771 Mil.
Depreciation, Depletion and Amortization(DDA) was $639 Mil.
Selling, General & Admin. Expense(SGA) was $245 Mil.
Total Current Liabilities was $557 Mil.
Long-Term Debt was $8,823 Mil.
Net Income was 137.915 + 81.18 + 6.801 + 61.192 = $287 Mil.
Non Operating Income was 114.287 + 123.306 + 21.258 + 42.861 = $302 Mil.
Cash Flow from Operations was 144.921 + 233.623 + 72.243 + 152.741 = $604 Mil.
Accounts Receivable was $138 Mil.
Revenue was 430.185 + 419.474 + 490.616 + 494.916 = $1,835 Mil.
Gross Profit was 299.25 + 281.887 + 336.788 + 355.962 = $1,274 Mil.
Total Current Assets was $302 Mil.
Total Assets was $24,790 Mil.
Property, Plant and Equipment(Net PPE) was $19,060 Mil.
Depreciation, Depletion and Amortization(DDA) was $686 Mil.
Selling, General & Admin. Expense(SGA) was $227 Mil.
Total Current Liabilities was $692 Mil.
Long-Term Debt was $9,119 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)
=(132.464 / 1726.668) / (137.879 / 1835.191)
=0.07671654 / 0.0751306
=1.0211

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)
=(322.676 / 1835.191) / (290.385 / 1726.668)
=0.6941441 / 0.70007784
=0.9915

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 - (444.343 + 16770.837) / 24072.103) / (1 - (302.06 + 19059.538) / 24789.543)
=0.28484935 / 0.21896108
=1.3009

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
=1726.668 / 1835.191
=0.9409

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))
=(685.646 / (685.646 + 19059.538)) / (638.981 / (638.981 + 16770.837))
=0.03472472 / 0.03670234
=0.9461

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)
=(244.848 / 1726.668) / (226.748 / 1835.191)
=0.14180375 / 0.12355553
=1.1477

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)
=((8822.952 + 556.965) / 24072.103) / ((9119.317 + 692.241) / 24789.543)
=0.38965923 / 0.39579423
=0.9845

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
=(287.088 - 301.712 - 603.528) / 24072.103
=-0.0257

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 -2.54 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.45720.84321.06311.07610.36460.88360.8587
GMI 1.16840.99841.05650.99950.98430.9961.0367
AQI 13.15540.09180.312-21.7666-0.29010.76341.7879
SGI 0.94371.03320.91390.99952.42031.30830.8726
DEPI 0.02941.5920.91431.67170.60520.81610.9075
SGAI 1.32721.0750.87751.07660.64430.89331.1517
LVGI 1.01121.13120.87280.95870.88481.04730.865
TATA -0.0212-0.0636-0.0477-0.034-0.0161-0.0289-0.0214
M-score 2.621.35-2.92-11.69-2.35-2.56-2.48

Prologis Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.35450.49290.83270.7590.76820.82240.86480.97581.09171.0211
GMI 0.99430.99580.99561.01031.02381.03151.03751.02550.99990.9915
AQI 0.80651.07930.76341.45781.63331.56741.78791.22111.30981.3009
SGI 2.40011.70481.38831.12450.96830.9220.86650.84280.90850.9409
DEPI 0.39470.59890.81610.75370.82560.89960.90751.161.03410.9461
SGAI 0.61820.75370.87910.92211.08961.12681.15991.25061.16881.1477
LVGI 1.04220.95571.04730.88750.82250.85660.8650.95431.00460.9845
TATA -0.0165-0.0202-0.0289-0.0374-0.0373-0.0298-0.0223-0.0171-0.0247-0.0257
M-score -2.00-2.37-2.54-2.55-2.61-2.59-2.48-2.63-2.49-2.54
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