American Homes 4 Rent Beneish M-Score Historical Data
The historical data trend for American Homes 4 Rent's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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American Homes 4 Rent Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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|
|
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-1.56 |
-2.52 |
-2.74 |
-2.97 |
-2.78 |
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American Homes 4 Rent Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.97 |
-2.98 |
-2.53 |
-2.61 |
-2.78 |
Competitive Comparison
For the REIT - Residential subindustry, American Homes 4 Rent's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Homes 4 Rent Beneish M-Score Distribution
For the REITs industry and Real Estate sector, American Homes 4 Rent's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where American Homes 4 Rent's Beneish M-Score falls into.
American Homes 4 Rent Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 American Homes 4 Rent 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 * 0.8034 | + | 0.528 * 0.9985 | + | 0.404 * 1.0014 | + | 0.892 * 1.0893 | + | 0.115 * 0.9919 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0065 | + | 4.679 * -0.044233 | - | 0.327 * 0.958 |
| = | -2.78 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $44 Mil.
Revenue was 408.657 + 421.697 + 395.548 + 397.703 = $1,624 Mil.
Gross Profit was 234.748 + 223.871 + 222.329 + 219.835 = $901 Mil.
Total Current Assets was $266 Mil.
Total Assets was $12,688 Mil.
Property, Plant and Equipment(Net PPE) was $17 Mil.
Depreciation, Depletion and Amortization(DDA) was $457 Mil.
Selling, General, & Admin. Expense(SGA) was $75 Mil.
Total Current Liabilities was $506 Mil.
Long-Term Debt & Capital Lease Obligation was $4,390 Mil.
Net Income was 80.103 + 77.599 + 101.515 + 120.951 = $380 Mil.
Non Operating Income was 25.538 + 31.801 + 61.065 + 84.318 = $203 Mil.
Cash Flow from Operations was 115.315 + 207.698 + 215.209 + 200.467 = $739 Mil.
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Total Receivables was $50 Mil.
Revenue was 380.926 + 391.627 + 361.876 + 356.105 = $1,491 Mil.
Gross Profit was 215.656 + 209.823 + 203.838 + 196.428 = $826 Mil.
Total Current Assets was $268 Mil.
Total Assets was $12,175 Mil.
Property, Plant and Equipment(Net PPE) was $19 Mil.
Depreciation, Depletion and Amortization(DDA) was $427 Mil.
Selling, General, & Admin. Expense(SGA) was $68 Mil.
Total Current Liabilities was $497 Mil.
Long-Term Debt & Capital Lease Obligation was $4,407 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (43.876 / 1623.605) | / | (50.135 / 1490.534) |
| = | 0.027024 | / | 0.033636 |
| | = | 0.8034 |
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) |
| = | (825.745 / 1490.534) | / | (900.783 / 1623.605) |
| = | 0.553993 | / | 0.554804 |
| | = | 0.9985 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (265.737 + 16.623) / 12688.19) | / | (1 - (268.095 + 19.129) / 12175.059) |
| = | 0.977746 | / | 0.976409 |
| | = | 1.0014 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 1623.605 | / | 1490.534 |
| | = | 1.0893 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (426.531 / (426.531 + 19.129)) | / | (456.55 / (456.55 + 16.623)) |
| = | 0.957077 | / | 0.964869 |
| | = | 0.9919 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (74.615 / 1623.605) | / | (68.057 / 1490.534) |
| = | 0.045956 | / | 0.045659 |
| | = | 1.0065 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((4389.935 + 506.364) / 12688.19) | / | ((4406.753 + 497.292) / 12175.059) |
| = | 0.385894 | / | 0.402794 |
| | = | 0.958 |
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 |
| = | (380.168 - 202.722 | - | 738.689) | / | 12688.19 |
| | = | -0.044233 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
American Homes 4 Rent has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.
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