Switch to:
Resource America Inc (NAS:REXI)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

REXI' s 10-Year Beneish M-Score Range
Min: -4.39   Max: 3.83
Current: -2.52

-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 * 0.7369+0.528 * 0.9945+0.404 * 1.0442+0.892 * 1.0639+0.115 * 1.1228
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9393+4.679 * 0.024-0.327 * 1.0292
=-2.52

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 0.337 + 1.744 + 1.516 + 2.718 = $6.3 Mil.
Non Operating Income was 16.363 + 26.271 + -1.776 + 2.908 = $43.8 Mil.
Cash Flow from Operations was -125.861 + 31.052 + 46.931 + -64.027 = $-111.9 Mil.
Accounts Receivable was $35.1 Mil.
Revenue was 42.616 + 33.911 + 43.025 + 33.485 = $153.0 Mil.
Gross Profit was 29.249 + 20.272 + 28.225 + 23.114 = $100.9 Mil.
Total Current Assets was $335.6 Mil.
Total Assets was $2,509.9 Mil.
Property, Plant and Equipment(Net PPE) was $5.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.2 Mil.
Selling, General & Admin. Expense(SGA) was $11.3 Mil.
Total Current Liabilities was $25.8 Mil.
Long-Term Debt was $1,522.8 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)
=(27.501 / 162.817) / (35.078 / 153.037)
=0.16890742 / 0.22921254
=0.7369

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)
=(1.585 / 153.037) / (27.121 / 162.817)
=0.65905631 / 0.66271949
=0.9945

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 - (297.337 + 5.739) / 3102.307) / (1 - (335.553 + 5.566) / 2509.891)
=0.90230625 / 0.86409011
=1.0442

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
=162.817 / 153.037
=1.0639

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))
=(2.178 / (2.178 + 5.566)) / (1.918 / (1.918 + 5.739))
=0.28125 / 0.25048975
=1.1228

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)
=(11.261 / 162.817) / (11.269 / 153.037)
=0.06916354 / 0.07363579
=0.9393

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)
=((1946.106 + 23.796) / 3102.307) / ((1522.767 + 25.81) / 2509.891)
=0.63497971 / 0.61698974
=1.0292

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
=(6.315 - 43.766 - -111.905) / 3102.307
=0.024

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 -2.52 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.71830.48680.45731.11690.87781.48481.43620.7540.92610.7369
GMI 0.8780.850.82411.081.10971.18391.16350.92250.99320.9945
AQI 1.20481.48831.38370.98181.16770.94990.98670.87571.08811.0442
SGI 0.99421.20291.44570.79310.91550.77890.79871.32841.06181.0639
DEPI 1.68361.71181.64982.21911.771.67881.62420.98510.96861.1228
SGAI 0.87390.72690.58071.09251.14211.5221.63240.97761.01980.9393
LVGI 0.77012.21272.72250.86932.34910.9220.9530.98091.03151.0292
TATA -0.218-0.03370.0073-0.01160.03450.0031-0.00380.0051-0.05240.024
M-score -3.57-3.08-2.90-2.41-2.76-2.13-2.22-2.47-2.72-2.52
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK