Switch to:
PS Business Parks Inc (NYSE:PSB)
Beneish M-Score
-3.81 (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.

PS Business Parks Inc has a M-score of -3.81 suggests that the company is not a manipulator.

PSB' s 10-Year Beneish M-Score Range
Min: -4.24   Max: 13.63
Current: -3.81

-4.24
13.63

During the past 13 years, the highest Beneish M-Score of PS Business Parks Inc was 13.63. The lowest was -4.24. And the median was -2.78.


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 PS Business Parks 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 * 0.163+0.528 * 1.0185+0.404 * 1.009+0.892 * 1.0185+0.115 * 0.9571
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.6457+4.679 * -0.066-0.327 * 0.9911
=-3.81

* 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 $5.9 Mil.
Revenue was 92.462 + 91.486 + 95.791 + 94.151 = $373.9 Mil.
Gross Profit was 60.716 + 62.196 + 62.689 + 62.616 = $248.2 Mil.
Total Current Assets was $220.9 Mil.
Total Assets was $2,237.4 Mil.
Property, Plant and Equipment(Net PPE) was $1,983.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $108.1 Mil.
Selling, General & Admin. Expense(SGA) was $14.6 Mil.
Total Current Liabilities was $68.6 Mil.
Long-Term Debt was $250.0 Mil.
Net Income was 34.991 + 97.472 + 26.42 + 24.981 = $183.9 Mil.
Non Operating Income was 12.487 + 92.373 + 0 + 0 = $104.9 Mil.
Cash Flow from Operations was 54.263 + 48.813 + 62.448 + 61.182 = $226.7 Mil.
Accounts Receivable was $35.3 Mil.
Revenue was 95.487 + 93.586 + 89.934 + 88.087 = $367.1 Mil.
Gross Profit was 62.043 + 66.76 + 60.033 + 59.367 = $248.2 Mil.
Total Current Assets was $81.0 Mil.
Total Assets was $2,234.2 Mil.
Property, Plant and Equipment(Net PPE) was $2,120.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $110.4 Mil.
Selling, General & Admin. Expense(SGA) was $5.4 Mil.
Total Current Liabilities was $71.0 Mil.
Long-Term Debt was $250.0 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)
=(5.856 / 373.89) / (35.272 / 367.094)
=0.01566236 / 0.09608438
=0.163

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)
=(62.196 / 367.094) / (60.716 / 373.89)
=0.67612927 / 0.66387708
=1.0185

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 - (220.918 + 1983.707) / 2237.372) / (1 - (81.041 + 2120.756) / 2234.205)
=0.01463637 / 0.01450538
=1.009

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
=373.89 / 367.094
=1.0185

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))
=(110.397 / (110.397 + 2120.756)) / (108.149 / (108.149 + 1983.707))
=0.0494798 / 0.05170002
=0.9571

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)
=(14.551 / 373.89) / (5.4 / 367.094)
=0.03891786 / 0.01471013
=2.6457

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)
=((250 + 68.612) / 2237.372) / ((250 + 71.014) / 2234.205)
=0.14240457 / 0.14368153
=0.9911

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
=(183.864 - 104.86 - 226.706) / 2237.372
=-0.066

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.

PS Business Parks Inc has a M-score of -3.81 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.

PS Business Parks Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 10.91850.94421.04721.04220.11691.27651.0650.5163
GMI 1.01311.00470.9981.01011.00941.01880.99040.98591.0285
AQI 6.32250.05110.42670.20651.79812.36430.38489.72160.2384
SGI 1.10291.1181.03810.96391.01951.07651.16451.03651.0473
DEPI 0.059115.64320.95121.11751.2631.22250.78350.96970.984
SGAI 1.09341.0050.98540.79451.52640.86970.84760.57462.4516
LVGI 2.58980.87411.79720.88081.92642.97950.68670.57920.9896
TATA -0.0694-0.0761-0.0822-0.0655-0.0566-0.0405-0.0558-0.0532-0.0656
M-score -1.20-1.46-3.38-3.00-2.72-3.45-2.491.09-3.73

PS Business Parks Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.27671.34470.80980.96941.0655.37930.87930.73360.51630.163
GMI 0.99020.99721.00110.99520.98590.99230.99471.0011.02851.0185
AQI 0.38480.28680.29650.37379.72162.900910.405810.22960.23841.009
SGI 1.16431.13351.09611.06961.03651.04691.05731.06561.04731.0185
DEPI 0.78350.84270.90190.94380.96971.00970.94450.9310.9840.9571
SGAI 0.84770.81940.78960.77910.57460.57020.67160.68262.45162.6457
LVGI 0.68670.57640.68240.80550.57920.75230.75230.75840.98960.9911
TATA -0.0558-0.0541-0.0556-0.0575-0.0532-0.0534-0.0566-0.0563-0.0656-0.066
M-score -2.49-2.44-2.98-2.881.092.261.120.92-3.73-3.81
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK