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Prologis Inc (NYSE:PLD)
Beneish M-Score
-3.45 (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 -3.45 suggests that the company is not a manipulator.

PLD' s 10-Year Beneish M-Score Range
Min: -3.45   Max: 11.09
Current: -3.45

-3.45
11.09

During the past 13 years, the highest Beneish M-Score of Prologis Inc was 11.09. The lowest was -3.45. And the median was -2.49.


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 * 0+0.528 * 0.9909+0.404 * 1.024+0.892 * 1.0517+0.115 * 1.0228
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9696+4.679 * -0.0286-0.327 * 0.9333
=-3.45

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $0 Mil.
Revenue was 462.847 + 450.865 + 415.151 + 460.089 = $1,789 Mil.
Gross Profit was 315.552 + 320.441 + 290.385 + 322.676 = $1,249 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 $241 Mil.
Total Current Liabilities was $460 Mil.
Long-Term Debt was $8,641 Mil.
Net Income was 346.876 + 410.287 + 137.915 + 81.18 = $976 Mil.
Non Operating Income was 333.434 + 418.363 + 114.287 + 123.306 = $989 Mil.
Cash Flow from Operations was 81.532 + 253.744 + 144.921 + 233.623 = $714 Mil.
Accounts Receivable was $115 Mil.
Revenue was 434.682 + 416.746 + 430.185 + 419.474 = $1,701 Mil.
Gross Profit was 300.002 + 295.739 + 299.25 + 281.887 = $1,177 Mil.
Total Current Assets was $314 Mil.
Total Assets was $24,655 Mil.
Property, Plant and Equipment(Net PPE) was $18,341 Mil.
Depreciation, Depletion and Amortization(DDA) was $647 Mil.
Selling, General & Admin. Expense(SGA) was $236 Mil.
Total Current Liabilities was $573 Mil.
Long-Term Debt was $8,871 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 / 1788.952) / (114.88 / 1701.087)
=0 / 0.06753329
=0

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)
=(320.441 / 1701.087) / (315.552 / 1788.952)
=0.69183881 / 0.69820431
=0.9909

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 - (192.013 + 18923.021) / 25460.821) / (1 - (313.516 + 18340.747) / 24655.148)
=0.24923733 / 0.24339278
=1.024

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
=1788.952 / 1701.087
=1.0517

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))
=(646.856 / (646.856 + 18340.747)) / (651.989 / (651.989 + 18923.021))
=0.03406728 / 0.03330721
=1.0228

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)
=(240.853 / 1788.952) / (236.213 / 1701.087)
=0.13463357 / 0.13886003
=0.9696

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)
=((8641.421 + 459.845) / 25460.821) / ((8870.635 + 572.754) / 24655.148)
=0.35746161 / 0.38301895
=0.9333

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
=(976.258 - 989.39 - 713.82) / 25460.821
=-0.0286

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 -3.45 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.45720.84321.06311.07610.36460.88360.85870.8022
GMI 1.16840.99841.05650.99950.98430.9961.03670.9861
AQI 13.15540.09180.312-21.7666-0.29010.76341.78790.9989
SGI 0.94371.03320.91390.99952.42031.30830.87261.0059
DEPI 0.02941.5920.91431.67170.60520.81610.90751.0948
SGAI 1.32721.0750.87751.07660.64430.89331.15171.0747
LVGI 1.01121.13120.87280.95870.88481.04730.8650.9868
TATA -0.0212-0.0636-0.0477-0.034-0.0161-0.0289-0.0214-0.0289
M-score 2.621.35-2.92-11.69-2.35-2.56-2.48-2.80

Prologis Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.83270.7590.76820.82240.86480.97581.09171.02110.80520
GMI 0.99561.01031.02381.03151.03751.02550.99990.99150.9860.9909
AQI 0.76341.45781.63331.56741.78791.22111.30981.30090.99891.024
SGI 1.38831.12450.96830.9220.86650.84280.90850.94091.00211.0517
DEPI 0.81610.75370.82560.89960.90751.161.03410.94611.09481.0228
SGAI 0.87910.92211.08961.12681.15991.25061.16881.14771.07870.9696
LVGI 1.04730.88750.82250.85660.8650.95431.00460.98450.98680.9333
TATA -0.0289-0.0374-0.0373-0.0298-0.0223-0.0171-0.0247-0.0257-0.0289-0.0286
M-score -2.54-2.55-2.61-2.59-2.48-2.63-2.49-2.54-2.80-3.45
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