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PS Business Parks Inc (NYSE:PSB)
Beneish M-Score
-3.03 (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 -3.03 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: -3.03

-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 -2.86.


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 * 0.4975+0.528 * 0.9783+0.404 * 1.1072+0.892 * 1.0201+0.115 * 1.0116
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0479+4.679 * -0.0665-0.327 * 0.4531
=-3.03

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $2.3 Mil.
Revenue was 96.218 + 95.973 + 94.68 + 93.452 = $380.3 Mil.
Gross Profit was 66.468 + 64.079 + 65.707 + 63.004 = $259.3 Mil.
Total Current Assets was $35.5 Mil.
Total Assets was $1,982.1 Mil.
Property, Plant and Equipment(Net PPE) was $1,898.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $102.4 Mil.
Selling, General & Admin. Expense(SGA) was $15.7 Mil.
Total Current Liabilities was $74.3 Mil.
Long-Term Debt was $54.0 Mil.
Net Income was 29.68 + 28.544 + 29.001 + 40.19 = $127.4 Mil.
Non Operating Income was 0 + 0 + 0 + 15.748 = $15.7 Mil.
Cash Flow from Operations was 61.341 + 55.473 + 59.457 + 67.17 = $243.4 Mil.
Accounts Receivable was $4.5 Mil.
Revenue was 93.081 + 92.462 + 91.486 + 95.791 = $372.8 Mil.
Gross Profit was 63.024 + 60.716 + 62.196 + 62.689 = $248.6 Mil.
Total Current Assets was $232.9 Mil.
Total Assets was $2,239.6 Mil.
Property, Plant and Equipment(Net PPE) was $1,957.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $106.9 Mil.
Selling, General & Admin. Expense(SGA) was $14.7 Mil.
Total Current Liabilities was $70.0 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)
=(2.303 / 380.323) / (4.538 / 372.82)
=0.00605538 / 0.01217209
=0.4975

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)
=(248.625 / 372.82) / (259.258 / 380.323)
=0.66687678 / 0.68167847
=0.9783

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 - (35.549 + 1898.473) / 1982.082) / (1 - (232.931 + 1957.64) / 2239.619)
=0.02424723 / 0.02190015
=1.1072

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
=380.323 / 372.82
=1.0201

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))
=(106.879 / (106.879 + 1957.64)) / (102.391 / (102.391 + 1898.473))
=0.05176944 / 0.05117339
=1.0116

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)
=(15.698 / 380.323) / (14.685 / 372.82)
=0.04127544 / 0.03938898
=1.0479

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)
=((54 + 74.335) / 1982.082) / ((250 + 70.014) / 2239.619)
=0.06474757 / 0.1428877
=0.4531

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
=(127.415 - 15.748 - 243.441) / 1982.082
=-0.0665

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 -3.03 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 10.9185011.04220.11691.27651.0650.51630.794
GMI 1.01311.00470.9981.01011.00941.01880.99040.98591.02850.98
AQI 6.32250.05110.42670.20651.79812.36430.38489.72160.38030.6831
SGI 1.10291.1181.03810.96391.01951.07651.16451.03651.04730.9914
DEPI 0.059115.64320.95121.11751.2631.22250.78350.96970.97351.0153
SGAI 1.09341.0050.98540.79451.52640.86970.84760.57462.45161.0045
LVGI 2.58980.87411.79720.88081.92642.97950.68670.57920.98961.0413
TATA -0.0694-0.0761-0.0812-0.0655-0.0566-0.0405-0.0558-0.0532-0.0656-0.0621
M-score -1.20-1.46-4.24-3.05-2.72-3.45-2.491.09-3.67-3.12

PS Business Parks Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 5.37930.87930.73360.51630.1631.01661.08220.7940.51710.4975
GMI 0.99230.99471.0011.02851.01851.01050.99780.980.97890.9783
AQI 2.900910.405810.22960.38031.0090.37610.23050.68311.33361.1072
SGI 1.04691.05731.06561.04731.01850.99910.97750.99141.00881.0201
DEPI 1.00970.94450.9310.97350.95711.02151.03061.01530.9991.0116
SGAI 0.57020.67160.68262.45162.64572.29912.22731.00450.94131.0479
LVGI 0.75230.75230.75840.98960.99110.9970.99071.04131.04450.4531
TATA -0.0534-0.0566-0.0563-0.0656-0.066-0.0636-0.0658-0.0621-0.0601-0.0665
M-score 2.261.120.92-3.67-3.81-3.23-3.25-3.12-3.08-3.03
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