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Prologis Inc (NYSE:PLD)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

PLD' s 10-Year Beneish M-Score Range
Min: -3.13   Max: 11.09
Current: -2.49

-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 -2.51.


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 * 1.0807+0.528 * 1.0003+0.404 * 1.3098+0.892 * 0.9178+0.115 * 1.0341
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.157+4.679 * -0.0247-0.327 * 1.0046
=-2.49

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $124 Mil.
Revenue was 460.089 + 434.682 + 416.746 + 430.185 = $1,742 Mil.
Gross Profit was 322.676 + 300.002 + 295.739 + 299.25 = $1,218 Mil.
Total Current Assets was $391 Mil.
Total Assets was $24,132 Mil.
Property, Plant and Equipment(Net PPE) was $17,133 Mil.
Depreciation, Depletion and Amortization(DDA) was $649 Mil.
Selling, General & Admin. Expense(SGA) was $242 Mil.
Total Current Liabilities was $616 Mil.
Long-Term Debt was $8,529 Mil.
Net Income was 81.18 + 6.801 + 61.192 + -5.399 = $144 Mil.
Non Operating Income was 123.306 + 21.258 + 42.861 + -34.882 = $153 Mil.
Cash Flow from Operations was 233.623 + 72.243 + 152.741 + 128.68 = $587 Mil.
Accounts Receivable was $125 Mil.
Revenue was 410.693 + 479.971 + 494.916 + 512.105 = $1,898 Mil.
Gross Profit was 275.85 + 329.708 + 355.962 + 365.555 = $1,327 Mil.
Total Current Assets was $537 Mil.
Total Assets was $24,038 Mil.
Property, Plant and Equipment(Net PPE) was $18,476 Mil.
Depreciation, Depletion and Amortization(DDA) was $725 Mil.
Selling, General & Admin. Expense(SGA) was $228 Mil.
Total Current Liabilities was $651 Mil.
Long-Term Debt was $8,417 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)
=(123.961 / 1741.702) / (124.98 / 1897.685)
=0.07117234 / 0.06585919
=1.0807

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)
=(300.002 / 1897.685) / (322.676 / 1741.702)
=0.69931258 / 0.69912476
=1.0003

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 - (391.388 + 17133.057) / 24131.562) / (1 - (537.046 + 18475.956) / 24037.568)
=0.27379566 / 0.20902972
=1.3098

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
=1741.702 / 1897.685
=0.9178

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))
=(724.7 / (724.7 + 18475.956)) / (649.021 / (649.021 + 17133.057))
=0.0377435 / 0.0364986
=1.0341

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)
=(241.679 / 1741.702) / (227.6 / 1897.685)
=0.13876025 / 0.11993561
=1.157

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)
=((8529.453 + 615.849) / 24131.562) / ((8417.31 + 651.081) / 24037.568)
=0.37897679 / 0.37725909
=1.0046

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
=(143.774 - 152.543 - 587.287) / 24131.562
=-0.0247

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 -2.49 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 01.45720.84321.06311.07610.36460.88360.8587
GMI 01.16840.99841.05650.99950.98430.9961.0367
AQI 16.414413.15540.09180.31235.25710.17910.76341.7879
SGI 0.97170.94371.03320.91390.99952.42031.30830.8726
DEPI 0.0260.02941.5920.91430.026338.47350.81610.9075
SGAI 1.24921.32721.0750.87751.07660.64430.89331.1517
LVGI 01.01121.13120.87280.95870.88481.04730.865
TATA -0.0191-0.0212-0.0636-0.0477-0.034-0.0161-0.0289-0.0214
M-score 2.362.621.35-2.9211.162.20-2.56-2.48

Prologis Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.34560.35450.32320.83270.7630.77610.83120.87450.97571.0807
GMI 0.97820.99430.99580.99561.011.02351.03121.03721.02581.0003
AQI 0.68240.80651.07930.76341.45781.63331.56741.78791.22111.3098
SGI 2.77172.40011.70481.38831.11850.95850.91220.85690.84290.9178
DEPI 1.08740.39470.59890.81610.75370.82560.89960.90751.161.0341
SGAI 0.62990.61820.75370.87910.9271.10081.13891.17291.25051.157
LVGI 0.91591.04220.95571.04730.88750.82250.85660.8650.95431.0046
TATA -0.0149-0.0165-0.0202-0.0289-0.0368-0.0368-0.0292-0.0217-0.0171-0.0247
M-score -1.61-2.00-2.53-2.54-2.55-2.61-2.59-2.48-2.63-2.49
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