Switch to:
Roberts Realty Investors Inc (AMEX:RPI)
Beneish M-Score
-1.96 (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 -1.96 signals that the company is a manipulator.

RPI' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 304.51
Current: -1.96

-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 -2.97.


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 * 0.9611+0.404 * 0.7758+0.892 * 1.2174+0.115 * 1.6656
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9871+4.679 * 0.0463-0.327 * 0.5765
=-1.96

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $0.00 Mil.
Revenue was 0.006 + -0.288 + 0.115 + 0.195 = $0.03 Mil.
Gross Profit was -0.017 + -0.328 + -0.001 + 0.08 = $-0.27 Mil.
Total Current Assets was $3.21 Mil.
Total Assets was $27.48 Mil.
Property, Plant and Equipment(Net PPE) was $24.04 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.26 Mil.
Selling, General & Admin. Expense(SGA) was $1.85 Mil.
Total Current Liabilities was $0.41 Mil.
Long-Term Debt was $5.59 Mil.
Net Income was -0.62 + 0.54 + -0.869 + -0.566 = $-1.52 Mil.
Non Operating Income was -0.052 + -0.042 + -0.06 + -0.03 = $-0.18 Mil.
Cash Flow from Operations was -0.773 + -0.912 + -0.519 + -0.4 = $-2.60 Mil.
Accounts Receivable was $0.00 Mil.
Revenue was 0.004 + -0.457 + 0.242 + 0.234 = $0.02 Mil.
Gross Profit was -0.075 + -0.442 + 0.167 + 0.14 = $-0.21 Mil.
Total Current Assets was $1.41 Mil.
Total Assets was $35.94 Mil.
Property, Plant and Equipment(Net PPE) was $34.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.61 Mil.
Selling, General & Admin. Expense(SGA) was $1.54 Mil.
Total Current Liabilities was $0.60 Mil.
Long-Term Debt was $13.00 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 / 0.028) / (0 / 0.023)
=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)
=(-0.328 / 0.023) / (-0.017 / 0.028)
=-9.13043478 / -9.5
=0.9611

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 - (3.214 + 24.04) / 27.483) / (1 - (1.406 + 34.147) / 35.939)
=0.00833242 / 0.01074042
=0.7758

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
=0.028 / 0.023
=1.2174

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))
=(0.61 / (0.61 + 34.147)) / (0.256 / (0.256 + 24.04))
=0.01755042 / 0.01053671
=1.6656

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)
=(1.847 / 0.028) / (1.537 / 0.023)
=65.96428571 / 66.82608696
=0.9871

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)
=((5.585 + 0.411) / 27.483) / ((12.998 + 0.602) / 35.939)
=0.21817123 / 0.37841899
=0.5765

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
=(-1.515 - -0.184 - -2.604) / 27.483
=0.0463

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 -1.96 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1111111111
GMI 1.17091.33021.34991.138521.5246-0.0639-0.0616-0.0673-0.00230.9611
AQI 0.10751.79572.20741.977125.40060.876640.843828.7290.03690.7758
SGI 0.84440.85020.9060.90930.19620.0202-0.0151-0.14560.10531.2174
DEPI 1.00650.8730.83540.53980.60040.71890.40330.42551.62041.6656
SGAI 0.98381.01780.94581.07395.059351.345849.089242.723411.79270.9871
LVGI 0.88491.01240.66120.67750.60580.7951.20650.69651.0910.5765
TATA -0.1355-0.1265-0.1044-0.0942-0.116-0.1553-0.1545-0.03350.01340.0463
M-score -3.48-2.73-2.28-2.4916.34-13.323.02-0.16-5.95-1.96
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)
Free 7-day Trial
FEEDBACK
Email Hide