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Roberts Realty Investors, Inc. (AMEX:RPI)
Beneish M-Score
-3.42 (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.

Roberts Realty Investors, Inc. has a M-score of -3.42 suggests that the company is not a manipulator.

RPI' s 10-Year Beneish M-Score Range
Min: -3.89   Max: 16.34
Current: -3.42

-3.89
16.34

During the past 13 years, the highest Beneish M-Score of Roberts Realty Investors, Inc. was 16.34. The lowest was -3.89. And the median was -3.00.


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 * 1+0.528 * -0.0412+0.404 * 0.0369+0.892 * 0.9474+0.115 * 1.6204
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3153+4.679 * 0.0135-0.327 * 1.091
=-3.42

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $0.00 Mil.
Revenue was -0.288 + 0.115 + 0.195 + 0.212 = $0.23 Mil.
Gross Profit was -0.328 + -0.001 + 0.08 + 0.088 = $-0.16 Mil.
Total Current Assets was $4.10 Mil.
Total Assets was $28.34 Mil.
Property, Plant and Equipment(Net PPE) was $23.95 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.32 Mil.
Selling, General & Admin. Expense(SGA) was $1.83 Mil.
Total Current Liabilities was $0.48 Mil.
Long-Term Debt was $5.60 Mil.
Net Income was 0.54 + -0.869 + -0.566 + 0.378 = $-0.52 Mil.
Non Operating Income was -0.042 + -0.06 + -0.03 + 1.204 = $1.07 Mil.
Cash Flow from Operations was -0.912 + -0.519 + -0.4 + -0.141 = $-1.97 Mil.
Accounts Receivable was $0.00 Mil.
Revenue was -0.457 + 0.242 + 0.234 + 0.228 = $0.25 Mil.
Gross Profit was -0.442 + 0.167 + 0.14 + 0.142 = $0.01 Mil.
Total Current Assets was $0.64 Mil.
Total Assets was $42.44 Mil.
Property, Plant and Equipment(Net PPE) was $30.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.65 Mil.
Selling, General & Admin. Expense(SGA) was $1.47 Mil.
Total Current Liabilities was $0.44 Mil.
Long-Term Debt was $7.91 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 / 0.234) / (0 / 0.247)
=0 / 0
=1

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)
=(-0.001 / 0.247) / (-0.328 / 0.234)
=0.02834008 / -0.68803419
=-0.0412

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 - (4.097 + 23.95) / 28.335) / (1 - (0.639 + 30.107) / 42.44)
=0.01016411 / 0.27554194
=0.0369

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
=0.234 / 0.247
=0.9474

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))
=(0.649 / (0.649 + 30.107)) / (0.316 / (0.316 + 23.95))
=0.02110157 / 0.01302234
=1.6204

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)
=(1.833 / 0.234) / (1.471 / 0.247)
=7.83333333 / 5.95546559
=1.3153

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)
=((5.6 + 0.479) / 28.335) / ((7.91 + 0.436) / 42.44)
=0.21454032 / 0.1966541
=1.091

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
=(-0.517 - 1.072 - -1.972) / 28.335
=0.0135

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 -3.42 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.

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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1111111111
GMI 0.90071.17091.33021.34991.138521.5246-2.8688-1.0089-0.1451-0.0412
AQI 1.16820.10751.79572.20741.977125.40060.876640.843828.7290.0369
SGI 0.57390.84440.85020.9060.90930.19620.20250.18110.06620.9474
DEPI 1.71721.00650.8730.83540.53980.60040.71890.40330.42551.6204
SGAI 1.51610.98381.01780.94581.07395.05935.13565.880514.52741.3153
LVGI 1.19870.88491.01240.66120.67750.60580.7951.20650.69651.091
TATA -0.13-0.1355-0.1265-0.1044-0.0942-0.116-0.1552-0.1544-0.03340.0135
M-score -3.52-3.48-2.73-2.28-2.4916.34-6.6910.134.84-3.42
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