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PS Business Parks Inc (NYSE:PSB)
Beneish M-Score
-3.08 (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 -3.08 suggests that the company is not a manipulator.

PSB' s Beneish M-Score Range Over the Past 10 Years
Min: -4.24   Max: 4.11
Current: -3.08

-4.24
4.11

During the past 13 years, the highest Beneish M-Score of PS Business Parks Inc was 4.11. The lowest was -4.24. And the median was -2.84.


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 * 0.5171+0.528 * 0.9789+0.404 * 1.3336+0.892 * 1.0088+0.115 * 0.999
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9413+4.679 * -0.0601-0.327 * 1.0445
=-3.08

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $3.1 Mil.
Revenue was 95.973 + 94.68 + 93.452 + 93.081 = $377.2 Mil.
Gross Profit was 64.079 + 65.707 + 63.004 + 63.024 = $255.8 Mil.
Total Current Assets was $227.7 Mil.
Total Assets was $2,179.5 Mil.
Property, Plant and Equipment(Net PPE) was $1,909.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $104.2 Mil.
Selling, General & Admin. Expense(SGA) was $13.8 Mil.
Total Current Liabilities was $74.2 Mil.
Long-Term Debt was $250.0 Mil.
Net Income was 28.544 + 29.001 + 40.19 + 26.293 = $124.0 Mil.
Non Operating Income was 0 + 0 + 15.748 + 0 = $15.7 Mil.
Cash Flow from Operations was 55.473 + 59.457 + 67.17 + 57.182 = $239.3 Mil.
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.



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)
=(3.055 / 377.186) / (5.856 / 373.89)
=0.00809945 / 0.01566236
=0.5171

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)
=(248.217 / 373.89) / (255.814 / 377.186)
=0.66387708 / 0.67821711
=0.9789

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 - (227.683 + 1909.263) / 2179.487) / (1 - (220.918 + 1983.707) / 2237.372)
=0.01951881 / 0.01463637
=1.3336

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
=377.186 / 373.89
=1.0088

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))
=(108.149 / (108.149 + 1983.707)) / (104.202 / (104.202 + 1909.263))
=0.05170002 / 0.05175258
=0.999

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)
=(13.818 / 377.186) / (14.551 / 373.89)
=0.03663445 / 0.03891786
=0.9413

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 + 74.194) / 2179.487) / ((250 + 68.612) / 2237.372)
=0.14874785 / 0.14240457
=1.0445

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
=(124.028 - 15.748 - 239.282) / 2179.487
=-0.0601

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 -3.08 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 10.9185011.03420.11771.27811.0650.51630.794
GMI 1.01261.00471.00061.00741.0121.01670.98980.98591.02850.98
AQI 6.32250.05110.42670.20651.79812.36430.38489.72160.38030.6831
SGI 1.10261.1181.04690.95581.02741.06961.16311.03651.04730.9914
DEPI 0.059115.60640.95341.11751.26731.21830.78350.96970.97351.0153
SGAI 1.09371.0050.97720.80121.51470.87540.84860.57462.45161.0045
LVGI 2.58980.87411.79720.88081.92642.97950.68670.57920.98961.0413
TATA -0.069-0.0761-0.0812-0.0655-0.0571-0.041-0.0558-0.0532-0.0656-0.0621
M-score -1.20-1.47-4.23-3.06-2.72-3.46-2.491.09-3.67-3.12

PS Business Parks Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.0655.37930.87930.73360.51630.1631.01661.08220.7940.5171
GMI 0.98590.99230.99471.0011.02851.01851.01050.99780.980.9789
AQI 9.72162.900910.405810.22960.38031.0090.37610.23050.68311.3336
SGI 1.03651.04691.05731.06561.04731.01850.99910.97750.99141.0088
DEPI 0.96971.00970.94450.9310.97350.95711.02151.03061.01530.999
SGAI 0.57460.57020.67160.68262.45162.64572.29912.22731.00450.9413
LVGI 0.57920.75230.75230.75840.98960.99110.9970.99071.04131.0445
TATA -0.0532-0.0534-0.0566-0.0563-0.0656-0.066-0.0636-0.0658-0.0621-0.0601
M-score 1.092.261.120.92-3.67-3.81-3.23-3.25-3.12-3.08
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