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Resource America Inc (NAS:REXI)
Beneish M-Score
-2.76 (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 -2.75 suggests that the company is not a manipulator.

REXI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.39   Max: 3.83
Current: -2.76

-4.39
3.83

During the past 13 years, the highest Beneish M-Score of Resource America Inc was 3.83. The lowest was -4.39. 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 * 0.7253+0.528 * 1.0575+0.404 * 1.2012+0.892 * 1.0706+0.115 * 1.1025
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.138+4.679 * -0.0306-0.327 * 1.1066
=-2.75

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $26.2 Mil.
Revenue was 40.677 + 45.996 + 42.189 + 42.824 = $171.7 Mil.
Gross Profit was 25.651 + 30.302 + 27.121 + 27.305 = $110.4 Mil.
Total Current Assets was $174.0 Mil.
Total Assets was $2,944.0 Mil.
Property, Plant and Equipment(Net PPE) was $5.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.0 Mil.
Selling, General & Admin. Expense(SGA) was $14.3 Mil.
Total Current Liabilities was $24.8 Mil.
Long-Term Debt was $1,902.1 Mil.
Net Income was -1.1 + -1.652 + 0.337 + 1.744 = $-0.7 Mil.
Non Operating Income was 5.012 + 6.426 + 16.363 + 7.986 = $35.8 Mil.
Cash Flow from Operations was 34.938 + 113.37 + -125.861 + 31.075 = $53.5 Mil.
Accounts Receivable was $33.7 Mil.
Revenue was 41.504 + 42.335 + 42.616 + 33.911 = $160.4 Mil.
Gross Profit was 29.183 + 30.328 + 29.249 + 20.272 = $109.0 Mil.
Total Current Assets was $597.9 Mil.
Total Assets was $2,763.1 Mil.
Property, Plant and Equipment(Net PPE) was $5.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.1 Mil.
Selling, General & Admin. Expense(SGA) was $11.8 Mil.
Total Current Liabilities was $22.7 Mil.
Long-Term Debt was $1,611.7 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)
=(26.158 / 171.686) / (33.688 / 160.366)
=0.15235954 / 0.21006947
=0.7253

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)
=(30.302 / 160.366) / (25.651 / 171.686)
=0.67989474 / 0.64291206
=1.0575

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 - (174.046 + 5.533) / 2943.994) / (1 - (597.898 + 5.177) / 2763.102)
=0.93900157 / 0.78173987
=1.2012

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
=171.686 / 160.366
=1.0706

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))
=(2.147 / (2.147 + 5.177)) / (2.004 / (2.004 + 5.533))
=0.29314582 / 0.26588828
=1.1025

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)
=(14.34 / 171.686) / (11.77 / 160.366)
=0.08352457 / 0.07339461
=1.138

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)
=((1902.136 + 24.846) / 2943.994) / ((1611.692 + 22.722) / 2763.102)
=0.65454685 / 0.59151418
=1.1066

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
=(-0.671 - 35.787 - 53.522) / 2943.994
=-0.0306

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 -2.75 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

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Dec13Dec14
DSRI 2.050.65032.21790.73952.17041.46290.42230.68560.9210.8931
GMI 0.79270.82410.86181.42491.08791.14330.50710.89731.0640.9764
AQI 0.84681.37170.88331.45050.83980.76971.56741.02230.9181.0881
SGI 1.86681.59971.68191.23010.68960.82521.88141.02380.89961.101
DEPI 0.39390.2741.08160.88010.66090.72640.78921.08292.39090.9686
SGAI 0.47540.72960.7231.10081.29591.09410.47210.88681.09120.9834
LVGI 1.84280.90691.62341.01750.77140.71931.73840.89230.84931.0315
TATA 0.02140.1257-0.0872-0.08050.1149-0.176-0.0148-0.01870.0344-0.0507
M-score -1.07-1.63-1.43-2.52-1.18-3.01-2.50-2.82-2.29-2.71

Resource America Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.45731.11690.87781.48481.53180.84650.89310.71060.71920.7253
GMI 0.82411.081.10971.18391.19970.970.97640.97671.0111.0575
AQI 1.38370.98181.16770.94990.98670.87571.08811.04421.05831.2012
SGI 1.44570.79310.91550.77890.74881.18311.1011.10331.06561.0706
DEPI 1.64982.21911.771.67881.62420.98510.96861.12281.10431.1025
SGAI 0.58071.09251.14211.5221.74111.09770.98340.90571.00681.138
LVGI 2.72250.86932.34910.9220.9530.98091.03151.02921.07041.1066
TATA 0.0073-0.01160.03450.0031-0.00670.0002-0.05070.0256-0.0334-0.0306
M-score -2.90-2.41-2.76-2.13-2.19-2.54-2.71-2.51-2.82-2.75
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