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Roberts Realty Investors Inc (AMEX:RPI)
Beneish M-Score
6.61 (As of Today)

Warning Sign:

Beneish M-Score 6.61 higher than -2.22, which implies that it might have manipulated its financial results.

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.

Roberts Realty Investors Inc has a M-score of signals that the company is a manipulator.

RPI' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 304.51
Current: 6.61

-10000000
304.51

During the past 13 years, the highest Beneish M-Score of Roberts Realty Investors Inc was 304.51. The lowest was -10000000.00. And the median was -2.99.


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 Roberts Realty Investors 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $0.00 Mil.
Revenue was 0 + 0.006 + -0.288 + 0.115 = $-0.17 Mil.
Gross Profit was -0.029 + -0.017 + -0.328 + -0.001 = $-0.38 Mil.
Total Current Assets was $2.24 Mil.
Total Assets was $26.71 Mil.
Property, Plant and Equipment(Net PPE) was $12.78 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.25 Mil.
Selling, General & Admin. Expense(SGA) was $1.94 Mil.
Total Current Liabilities was $0.46 Mil.
Long-Term Debt was $5.57 Mil.
Net Income was -0.645 + -0.62 + 0.54 + -0.869 = $-1.59 Mil.
Non Operating Income was -0.052 + -0.052 + -0.042 + -0.06 = $-0.21 Mil.
Cash Flow from Operations was -0.745 + -0.773 + -0.912 + -0.519 = $-2.95 Mil.
Accounts Receivable was $ Mil.
Revenue was 0 + 0.004 + -0.457 + 0.242 = $ Mil.
Gross Profit was + + + = $ Mil.
Total Current Assets was $ Mil.
Total Assets was $ Mil.
Property, Plant and Equipment(Net PPE) was $ Mil.
Depreciation, Depletion and Amortization(DDA) was $ Mil.
Selling, General & Admin. Expense(SGA) was $ Mil.
Total Current Liabilities was $ Mil.
Long-Term Debt was $ 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)
=(0 / -0.167) / ( / -0.211)
= /
=

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)
=(-0.017 / -0.211) / (-0.029 / -0.167)
= /
=

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 - (2.24 + 12.776) / 26.711) / (1 - ( + 15.055) / )
=0.4378346 /
=

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
=-0.167 / -0.211
=

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))
=(0.501 / (0.501 + 15.055)) / (0.246 / (0.246 + 12.776))
= / 0.01889111
=

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)
=(1.944 / -0.167) / ( / -0.211)
= /
=

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)
=((5.565 + 0.455) / 26.711) / (( + ) / )
=0.22537531 /
=

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
=(-1.594 - -0.206 - -2.949) / 26.711
=0.0584

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.

Roberts Realty Investors Inc has a M-score of signals that the company is likely to 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.

Roberts Realty Investors Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1111111
GMI 01.81690.97560.76611.3456-0.04161.2033
AQI 0.39130.306712.60811.31260.107525.40060.0369
SGI 0.30471.05910.75540.75920.84440.01032.2308
DEPI 1.98230.79831.35290.9021.00510.59951.6178
SGAI 4.11660.83591.36521.20550.9158100.85260.556
LVGI 0.46071.81680.98220.88610.88490.60581.091
TATA -0.01780.1669-0.1286-0.0576-0.1355-0.11610.0128
M-score -4.20-1.761.36-2.97-3.38-11.69-1.49

Roberts Realty Investors Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1111111111
GMI 1.33021.34991.138521.5246-0.0639-0.0616-0.0673-0.003111
AQI 1.79572.20741.977125.40060.876640.843828.7290.03690.775840.7651
SGI 0.85020.9060.90930.19620.0202-0.1991-0.3442-0.6842-7.2609-7.2609
DEPI 0.83110.79370.50090.60040.71890.40330.42551.62041.66560.929
SGAI 1.01780.94581.07395.059351.345849.089242.723411.22111
LVGI 1.01240.66120.67750.60580.7951.20650.69651.0910.57650.5956
TATA -0.1265-0.1044-0.0942-0.116-0.1553-0.1546-0.03360.01330.04620.0584
M-score -2.74-2.28-2.5016.34-13.322.86-0.34-6.56-9.516.61
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