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Rouse Properties Inc (NYSE:RSE)
Beneish M-Score
0.00 (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.

Rouse Properties Inc has a M-score of signals that the company is a manipulator.

During the past 7 years, the highest Beneish M-Score of Rouse Properties Inc was -2.77. The lowest was -3.46. And the median was -2.92.


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 Rouse Properties 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 (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $43.4 Mil.
Revenue was 80.632 + 84.861 + 73.553 + 72.409 = $311.5 Mil.
Gross Profit was 53.742 + 57.902 + 48.458 + 46.128 = $206.2 Mil.
Total Current Assets was $128.7 Mil.
Total Assets was $2,523.6 Mil.
Property, Plant and Equipment(Net PPE) was $2,350.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $108.3 Mil.
Selling, General & Admin. Expense(SGA) was $28.4 Mil.
Total Current Liabilities was $1,863.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -10.082 + -0.719 + -1.302 + -0.688 = $-12.8 Mil.
Non Operating Income was 0 + 2.031 + -0.067 + 4.04 = $6.0 Mil.
Cash Flow from Operations was 14.645 + 14.963 + 20.743 + 22.99 = $73.3 Mil.
Accounts Receivable was $34.5 Mil.
Revenue was 74.561 + 81.714 + 74.783 + 67.79 = $298.8 Mil.
Gross Profit was 46.827 + 53.801 + 46.463 + 41.958 = $189.0 Mil.
Total Current Assets was $203.4 Mil.
Total Assets was $2,227.4 Mil.
Property, Plant and Equipment(Net PPE) was $2,023.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $114.6 Mil.
Selling, General & Admin. Expense(SGA) was $30.0 Mil.
Total Current Liabilities was $1,659.0 Mil.
Long-Term Debt was $0.0 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)
=(43.434 / 311.455) / (34.471 / 298.848)
=0.13945514 / 0.11534626
=

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)
=(189.049 / 298.848) / (206.23 / 311.455)
=0.63259249 / 0.66215023
=

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 - (128.677 + 2350.34) / 2523.557) / (1 - (203.441 + 2023.911) / 2227.352)
=0.01764969 / 0
=

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
=311.455 / 298.848
=

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))
=(114.555 / (114.555 + 2023.911)) / (108.303 / (108.303 + 2350.34))
=0.05356877 / 0.04404991
=

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)
=(28.365 / 311.455) / (29.964 / 298.848)
=0.09107255 / 0.10026502
=

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)
=((0 + 1863.918) / 2523.557) / ((0 + 1658.969) / 2227.352)
=0.73860745 / 0.74481672
=

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
=(-12.791 - 6.004 - 73.341) / 2523.557
=-0.0365

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.

Rouse Properties 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.

Rouse Properties Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.4845
GMI 1.0273
AQI 0
SGI 0.9964
DEPI 0.9127
SGAI 1.5936
LVGI 0.9856
TATA -0.0561
M-score -2.80

Rouse Properties Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.09791.0887
GMI 0.89631.094
AQI 0.16510
SGI 1.15381.0881
DEPI 1.11281.0306
SGAI 0.99590.9872
LVGI 1.04371.0099
TATA -0.063-0.0481
M-score -2.94-2.90
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