REXI has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 -2.41 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Resource America, Inc. was 3.81. The lowest was -4.39. And the median was -2.23.
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 * 1.1169||+||0.528 * 1.08||+||0.404 * 0.9818||+||0.892 * 0.7931||+||0.115 * 2.2191|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0925||+||4.679 * -0.0116||-||0.327 * 0.8693|
|This Year (Sep13) TTM:||Last Year (Sep12) TTM:|
|Accounts Receivable was $33.6 Mil.|
Revenue was 43.025 + 33.485 + 43.327 + 15.705 = $135.5 Mil.
Gross Profit was 28.225 + 23.114 + 31.314 + 6.739 = $89.4 Mil.
Total Current Assets was $257.3 Mil.
Total Assets was $2,443.5 Mil.
Property, Plant and Equipment(Net PPE) was $5.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.0 Mil.
Selling, General & Admin. Expense(SGA) was $9.1 Mil.
Total Current Liabilities was $30.7 Mil.
Long-Term Debt was $1,442.8 Mil.
Net Income was 3.442 + 1.113 + 0.496 + -1.447 = $3.6 Mil.
Non Operating Income was 16.897 + 0.114 + -0.259 + -0.108 = $16.6 Mil.
Cash Flow from Operations was 56.783 + -83.193 + 45.146 + -3.38 = $15.4 Mil.
|Accounts Receivable was $38.0 Mil.
Revenue was 123.672 + 13.784 + 14.78 + 18.664 = $170.9 Mil.
Gross Profit was 111.976 + 3.286 + 2.764 + 3.705 = $121.7 Mil.
Total Current Assets was $237.4 Mil.
Total Assets was $2,644.3 Mil.
Property, Plant and Equipment(Net PPE) was $2.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.9 Mil.
Selling, General & Admin. Expense(SGA) was $10.5 Mil.
Total Current Liabilities was $27.4 Mil.
Long-Term Debt was $1,806.9 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(33.636 / 135.542)||/||(37.972 / 170.9)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(23.114 / 170.9)||/||(28.225 / 135.542)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (257.291 + 4.955) / 2443.511)||/||(1 - (237.397 + 2.732) / 2644.263)|
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.
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))|
|=||(4.875 / (4.875 + 2.732))||/||(2.012 / (2.012 + 4.955))|
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)|
|=||(9.063 / 135.542)||/||(10.46 / 170.9)|
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)|
|=||((1442.81 + 30.65) / 2443.511)||/||((1806.943 + 27.391) / 2644.263)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(3.604 - 16.644||-||15.356)||/||2443.511|
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 -2.41 suggests that the company will not be a manipulator.
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
Resource America, Inc. Annual Data
Resource America, Inc. Quarterly Data