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Roberts Realty Investors Inc (AMEX:RPI)
Beneish M-Score
-11.36 (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 signals that the company is a manipulator.

RPI' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 305.06
Current: -11.36

-10000000
305.06

During the past 13 years, the highest Beneish M-Score of Roberts Realty Investors Inc was 305.06. The lowest was -10000000.00. And the median was -3.13.


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 $0.00 Mil.
Revenue was 0.195 + 0.212 + 0.278 + 0.444 = $1.13 Mil.
Gross Profit was 0.08 + 0.088 + 0.149 + 0.295 = $0.61 Mil.
Total Current Assets was $0.93 Mil.
Total Assets was $35.37 Mil.
Property, Plant and Equipment(Net PPE) was $15.06 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.50 Mil.
Selling, General & Admin. Expense(SGA) was $1.63 Mil.
Total Current Liabilities was $0.71 Mil.
Long-Term Debt was $12.98 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 / 1.129)
= / 0
=

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 / 1.129) / (-0.029 / -0.167)
=0.54207263 /
=

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 - (0.93 + 15.055) / 35.365)
=0.4378346 / 0.54799943
=

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 / 1.129
=

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))
=0.03220622 / 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) / (1.626 / 1.129)
= / 1.44021258
=

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) / ((12.978 + 0.712) / 35.365)
=0.22537531 / 0.3871059
=

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 111111
GMI 01.76810.95540.86771.1658-0.0535
AQI 8.16190.03171.54321.36711.85060.5063
SGI 0.33110.89150.77610.69981.07630.0214
DEPI 1.46011.11330.95691.15140.80051.2115
SGAI 4.2370.91911.29181.03161.045853.6232
LVGI 0.0013705.72490.96751.05330.77510.5666
TATA 0.1669-0.1285-0.0578-0.1355-0.11540.0128
M-score -0.11-233.58-2.80-3.31-2.48-12.93

Roberts Realty Investors Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1111111111
GMI 0.82140.75090.75261.01671.18951.36191.8866-0.931-0.0628-0.0571
AQI 1.79572.20741.97711.85060.876640.843828.7290.50630.77580.799
SGI 0.68980.71240.77431.07631.06811.00180.66830.17270.0223-0.1479
DEPI 1.14821.26581.0010.80170.68520.36640.36881.21341.66561.7048
SGAI 1.09541.00830.90321.12531.11711.17871.66996.42549.062445.8018
LVGI 1.01240.66120.67750.77510.7951.20650.69650.56660.57650.5822
TATA -0.1265-0.1044-0.0849-0.1154-0.1547-0.154-0.04530.01350.04630.0584
M-score -3.12-2.73-2.69-2.57-3.0812.928.59-5.14-11.84-11.36
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