Real Estate (ASX:RNC) Beneish M-Score : 0.00 (As of Jun. 20, 2024)

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What is Real Estate Beneish M-Score?

The zones of discrimination for M-Score is as such:

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.

The historical rank and industry rank for Real Estate's Beneish M-Score or its related term are showing as below:

During the past 8 years, the highest Beneish M-Score of Real Estate was 0.00. The lowest was 0.00. And the median was 0.00.

Real Estate Beneish M-Score Historical Data

The historical data trend for Real Estate'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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Real Estate Beneish M-Score Chart

Real Estate Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Beneish M-Score

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2.79

-2.00

-1.18

-2.66

Real Estate Semi-Annual Data
	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13
Beneish M-Score	Get a 7-Day Free Trial													-	-1.18	-	-2.66	-

Competitive Comparison of Real Estate's Beneish M-Score

For the Real Estate Services subindustry, Real Estate'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.

Real Estate's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Real Estate's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Real Estate's Beneish M-Score falls into.

Real Estate 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 Real Estate for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.4458

0.528 * 1.0014

0.404 * 1.0102

0.892 * 0.6386

0.115 * 1.1316

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4969

4.679 * -0.045966

0.327 * 0.9514

-2.66

This Year (Jun13) TTM:

Last Year (Jun12) TTM:

Total Receivables was A$0.53 Mil.
Revenue was A$27.63 Mil.
Gross Profit was A$27.23 Mil.
Total Current Assets was A$3.75 Mil.
Total Assets was A$42.36 Mil.
Property, Plant and Equipment(Net PPE) was A$0.49 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.80 Mil.
Selling, General, & Admin. Expense(SGA) was A$19.06 Mil.
Total Current Liabilities was A$9.95 Mil.
Long-Term Debt & Capital Lease Obligation was A$13.43 Mil.
Net Income was A$1.52 Mil.
Gross Profit was A$0.00 Mil.
Cash Flow from Operations was A$3.47 Mil.

Total Receivables was A$0.57 Mil.
Revenue was A$43.26 Mil.
Gross Profit was A$42.70 Mil.
Total Current Assets was A$4.33 Mil.
Total Assets was A$43.16 Mil.
Property, Plant and Equipment(Net PPE) was A$0.38 Mil.
Depreciation, Depletion and Amortization(DDA) was A$3.06 Mil.
Selling, General, & Admin. Expense(SGA) was A$19.94 Mil.
Total Current Liabilities was A$11.66 Mil.
Long-Term Debt & Capital Lease Obligation was A$13.38 Mil.

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)
	=	(0.529 / 27.626)	/	(0.573 / 43.262)
	=	0.019149	/	0.013245
	=	1.4458

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)
	=	(42.701 / 43.262)	/	(27.23 / 27.626)
	=	0.987032	/	0.985666
	=	1.0014

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 - (3.749 + 0.49) / 42.357)	/	(1 - (4.328 + 0.382) / 43.159)
	=	0.899922	/	0.890869
	=	1.0102

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
	=	27.626	/	43.262
	=	0.6386

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))
	=	(3.057 / (3.057 + 0.382))	/	(1.795 / (1.795 + 0.49))
	=	0.888921	/	0.785558
	=	1.1316

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)
	=	(19.061 / 27.626)	/	(19.941 / 43.262)
	=	0.689966	/	0.460936
	=	1.4969

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)
	=	((13.425 + 9.954) / 42.357)	/	((13.375 + 11.663) / 43.159)
	=	0.551951	/	0.580134
	=	0.9514

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
	=	(1.518 - 0	-	3.465)	/	42.357
	=	-0.045966

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.

Real Estate has a M-score of -2.66 suggests that the company is unlikely to be a manipulator.

Real Estate Beneish M-Score Related Terms

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Real Estate (ASX:RNC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Real Estate Corp Ltd (ASX:RNC) » Definitions » Beneish M-Score

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Address

Website

http://www.run.com.au

Run Corp Limited (RNC) is a specialist residential property management company that operates over 20,000 residential properties under management in Melbourne, Sydney, and Brisbane. During the fiscal year 2008, the company launched a new service, branded Agentplus, providing real estate agents with a packaged back-office solution.

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