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Resource America Inc (NAS:REXI)
Beneish M-Score
-4.55 (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.

Resource America Inc has a M-score of -4.55 suggests that the company is not a manipulator.

REXI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.55   Max: 3.84
Current: -4.55

-4.55
3.84

During the past 13 years, the highest Beneish M-Score of Resource America Inc was 3.84. The lowest was -4.55. And the median was -2.23.


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 Resource America 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 * 1.8058+0.528 * 2.6846+0.404 * 0.8376+0.892 * 0.5137+0.115 * 0.8576
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.01+4.679 * -0.6516-0.327 * 0.3534
=-4.55

* 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 $25.5 Mil.
Revenue was 25.968 + -29.007 + 40.677 + 45.996 = $83.6 Mil.
Gross Profit was 10.878 + -46.185 + 25.651 + 30.302 = $20.6 Mil.
Total Current Assets was $44.9 Mil.
Total Assets was $204.6 Mil.
Property, Plant and Equipment(Net PPE) was $5.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.1 Mil.
Selling, General & Admin. Expense(SGA) was $17.4 Mil.
Total Current Liabilities was $25.3 Mil.
Long-Term Debt was $20.6 Mil.
Net Income was 3.037 + 8.605 + -1.1 + -1.652 = $8.9 Mil.
Non Operating Income was 0.693 + -31.279 + 5.012 + 6.426 = $-19.1 Mil.
Cash Flow from Operations was 2.714 + 10.331 + 34.938 + 113.37 = $161.4 Mil.
Accounts Receivable was $27.5 Mil.
Revenue was 42.189 + 17.104 + 50.409 + 53.115 = $162.8 Mil.
Gross Profit was 27.121 + 1.585 + 38.088 + 41.108 = $107.9 Mil.
Total Current Assets was $297.3 Mil.
Total Assets was $3,102.3 Mil.
Property, Plant and Equipment(Net PPE) was $5.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.9 Mil.
Selling, General & Admin. Expense(SGA) was $11.3 Mil.
Total Current Liabilities was $23.8 Mil.
Long-Term Debt was $1,946.1 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)
=(25.509 / 83.634) / (27.501 / 162.817)
=0.30500753 / 0.16890742
=1.8058

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)
=(107.902 / 162.817) / (20.646 / 83.634)
=0.66271949 / 0.24686132
=2.6846

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 - (44.901 + 5.061) / 204.586) / (1 - (297.337 + 5.739) / 3102.307)
=0.75578974 / 0.90230625
=0.8376

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
=83.634 / 162.817
=0.5137

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))
=(1.918 / (1.918 + 5.739)) / (2.088 / (2.088 + 5.061))
=0.25048975 / 0.29206882
=0.8576

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)
=(17.411 / 83.634) / (11.261 / 162.817)
=0.20818088 / 0.06916354
=3.01

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)
=((20.597 + 25.313) / 204.586) / ((1946.106 + 23.796) / 3102.307)
=0.22440441 / 0.63497971
=0.3534

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
=(8.89 - -19.148 - 161.353) / 204.586
=-0.6516

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.

Resource America Inc has a M-score of -4.55 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.

Resource America Inc Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Dec13Dec14Dec15
DSRI 0.68112.30020.74572.15781.47140.86051.04840.29560.89311.638
GMI 0.86270.88381.43021.07721.15461.08131.26510.35390.97641.856
AQI 1.37170.88331.45050.83980.76971.30580.88751.26931.08810.7865
SGI 1.52741.62171.21990.69360.82040.96940.74912.38611.1010.5899
DEPI 0.33561.08160.88010.66090.72640.82331.0382.39090.96861.0056
SGAI 0.67810.75871.0891.28841.10050.91621.21190.41140.98342.413
LVGI 0.90691.62341.01750.77140.71931.40140.40912.29781.03150.398
TATA 0.13820.0739-0.09750.1107-0.1787-0.0436-0.17050.0344-0.0507-0.1094
M-score -1.57-0.64-2.60-1.21-3.01-2.81-3.20-2.13-2.71-2.45

Resource America Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.32130.7270.88970.99341.64431.8058
GMI 0.44470.90960.97471.25021.85922.6846
AQI 1.16770.87571.08811.20120.78650.8376
SGI 2.50091.37771.10530.78170.58760.5137
DEPI 1.770.98510.96861.10251.00560.8576
SGAI 0.41810.94260.97971.55872.42223.01
LVGI 2.34910.98091.03151.10660.3980.3534
TATA 0.03440.0068-0.0507-0.0368-0.1094-0.6516
M-score -2.08-2.45-2.71-2.76-2.45-4.55
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