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Prologis Inc (NYSE:PLD)
Beneish M-Score
-2.41 (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 -2.41 suggests that the company is not a manipulator.

PLD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.54   Max: 5.03
Current: -2.41

-3.54
5.03

During the past 13 years, the highest Beneish M-Score of Prologis Inc was 5.03. The lowest was -3.54. And the median was -2.58.


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 * 0.9832+0.404 * 0.938+0.892 * 1.2478+0.115 * 0.9149
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7705+4.679 * -0.0301-0.327 * 1.0166
=-2.41

* 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 $0 Mil.
Revenue was 643.201 + 580.622 + 510.404 + 462.847 = $2,197 Mil.
Gross Profit was 466.197 + 419.003 + 364.69 + 315.552 = $1,565 Mil.
Total Current Assets was $264 Mil.
Total Assets was $31,395 Mil.
Property, Plant and Equipment(Net PPE) was $24,247 Mil.
Depreciation, Depletion and Amortization(DDA) was $880 Mil.
Selling, General & Admin. Expense(SGA) was $238 Mil.
Total Current Liabilities was $713 Mil.
Long-Term Debt was $11,627 Mil.
Net Income was 119.995 + 260.65 + 141.918 + 346.876 = $869 Mil.
Non Operating Income was 99.54 + 292.92 + 124.818 + 333.434 = $851 Mil.
Cash Flow from Operations was 313.595 + 293.926 + 274.357 + 81.532 = $963 Mil.
Accounts Receivable was $0 Mil.
Revenue was 450.865 + 415.151 + 460.089 + 434.682 = $1,761 Mil.
Gross Profit was 320.441 + 290.385 + 322.676 + 300.002 = $1,234 Mil.
Total Current Assets was $351 Mil.
Total Assets was $25,775 Mil.
Property, Plant and Equipment(Net PPE) was $19,399 Mil.
Depreciation, Depletion and Amortization(DDA) was $642 Mil.
Selling, General & Admin. Expense(SGA) was $248 Mil.
Total Current Liabilities was $628 Mil.
Long-Term Debt was $9,337 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 / 2197.074) / (0 / 1760.787)
=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)
=(419.003 / 1760.787) / (466.197 / 2197.074)
=0.70054129 / 0.71251219
=0.9832

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 - (264.08 + 24247.084) / 31394.767) / (1 - (350.692 + 19399.364) / 25775.001)
=0.21925957 / 0.23375149
=0.938

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
=2197.074 / 1760.787
=1.2478

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))
=(642.461 / (642.461 + 19399.364)) / (880.373 / (880.373 + 24247.084))
=0.03205601 / 0.0350363
=0.9149

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)
=(238.199 / 2197.074) / (247.768 / 1760.787)
=0.10841647 / 0.14071435
=0.7705

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)
=((11626.831 + 712.725) / 31394.767) / ((9336.977 + 627.999) / 25775.001)
=0.39304499 / 0.38661399
=1.0166

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
=(869.439 - 850.712 - 963.41) / 31394.767
=-0.0301

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 -2.41 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 1.45720.84321.08960.27841.48280.83830.706701
GMI 1.16840.99841.05360.98480.99780.99891.03770.98610.9832
AQI 13.15541.00341.00740.24760.72260.76341.79881.00460.938
SGI 0.94371.03320.89171.35851.69231.37890.89291.00591.2478
DEPI 0.0291132.63491.17890.81610.90751.09480.9149
SGAI 1.32721.0750.90011.04960.69480.84751.12561.07470.7705
LVGI 1.01121.13120.87280.90510.93731.04730.85810.99211.0166
TATA -0.0212-0.0636-0.0474-0.064-0.0161-0.0289-0.0214-0.0289-0.0299
M-score 2.62-2.95-2.630.22-1.51-2.53-2.59-3.53-2.41

Prologis Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.79730.7090.94891.0610.990400001
GMI 1.03911.03771.02570.99980.99070.98610.99070.99570.98840.9832
AQI 1.56741.79881.22111.30981.30091.00461.0240.79330.78170.938
SGI 0.9510.88990.86670.93480.97011.00591.04911.04831.14771.2478
DEPI 0.89960.90751.161.03410.94611.09481.02281.34431.1730.9149
SGAI 1.09251.12931.21621.13591.11321.07470.97190.93750.84930.7705
LVGI 0.85660.85810.95431.00460.98450.99210.93331.0571.03181.0166
TATA -0.0292-0.0209-0.0163-0.0239-0.0248-0.029-0.0286-0.0225-0.0291-0.0301
M-score -2.58-2.59-2.62-2.49-2.54-3.54-3.46-3.52-3.46-2.41
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