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PS Business Parks Inc (NYSE:PSB)
Beneish M-Score
-3.73 (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 -3.73 suggests that the company is not a manipulator.

PSB' s 10-Year Beneish M-Score Range
Min: -4.24   Max: 13.63
Current: -3.73

-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 -2.36.


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 * 0.5163+0.528 * 1.0285+0.404 * 0.2384+0.892 * 1.0473+0.115 * 0.984
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.4516+4.679 * -0.0656-0.327 * 0.9896
=-3.73

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $2.8 Mil.
Revenue was 91.486 + 95.791 + 94.151 + 95.487 = $376.9 Mil.
Gross Profit was 62.196 + 62.689 + 62.616 + 62.043 = $249.5 Mil.
Total Current Assets was $181.4 Mil.
Total Assets was $2,227.1 Mil.
Property, Plant and Equipment(Net PPE) was $2,007.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $110.4 Mil.
Selling, General & Admin. Expense(SGA) was $13.6 Mil.
Total Current Liabilities was $68.9 Mil.
Long-Term Debt was $250.0 Mil.
Net Income was 97.472 + 26.42 + 24.981 + 25.098 = $174.0 Mil.
Non Operating Income was 92.373 + 0 + 0 + 0 = $92.4 Mil.
Cash Flow from Operations was 48.813 + 62.448 + 61.182 + 55.328 = $227.8 Mil.
Accounts Receivable was $5.2 Mil.
Revenue was 93.586 + 89.934 + 88.087 + 88.278 = $359.9 Mil.
Gross Profit was 66.76 + 60.033 + 59.367 + 58.894 = $245.1 Mil.
Total Current Assets was $62.6 Mil.
Total Assets was $2,238.6 Mil.
Property, Plant and Equipment(Net PPE) was $2,015.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $108.9 Mil.
Selling, General & Admin. Expense(SGA) was $5.3 Mil.
Total Current Liabilities was $73.9 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)
=(2.838 / 376.915) / (5.248 / 359.885)
=0.00752955 / 0.01458244
=0.5163

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)
=(62.689 / 359.885) / (62.196 / 376.915)
=0.68092307 / 0.6620697
=1.0285

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 - (181.355 + 2007.713) / 2227.114) / (1 - (62.632 + 2015.517) / 2238.559)
=0.01708309 / 0.0716577
=0.2384

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
=376.915 / 359.885
=1.0473

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))
=(108.917 / (108.917 + 2015.517)) / (110.357 / (110.357 + 2007.713))
=0.05126871 / 0.05210262
=0.984

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)
=(13.639 / 376.915) / (5.312 / 359.885)
=0.03618588 / 0.01476027
=2.4516

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 + 68.905) / 2227.114) / ((250 + 73.919) / 2238.559)
=0.14319204 / 0.14469978
=0.9896

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
=(173.971 - 92.373 - 227.771) / 2227.114
=-0.0656

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 -3.73 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.18351.27671.34470.80980.96941.0655.37930.87930.73360.5163
GMI 1.00330.99020.99721.00110.99520.98590.99230.99471.0011.0285
AQI 0.81480.38480.28680.29650.37379.72162.900910.405810.22960.2384
SGI 1.13091.16431.13351.09611.06961.03651.04691.05731.06561.0473
DEPI 1.08750.78350.84270.90190.94380.96971.00970.94450.9310.984
SGAI 1.35610.84770.81940.78960.77910.57460.57020.67160.68262.4516
LVGI 1.55860.68670.57640.68240.80550.57920.75230.75230.75840.9896
TATA -0.0487-0.0558-0.0541-0.0556-0.0575-0.0532-0.0534-0.0566-0.0563-0.0656
M-score -2.73-2.49-2.44-2.98-2.881.092.261.120.92-3.73
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