DLRPK.PFD (Digital Realty Trust) Beneish M-Score : -2.69 (As of Dec. 11, 2024)

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What is Digital Realty Trust 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.

Good Sign:

Beneish M-Score -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DLRpK.PFD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.5 Max: -1.86
Current: -2.69

During the past 13 years, the highest Beneish M-Score of Digital Realty Trust was -1.86. The lowest was -3.02. And the median was -2.50.

Digital Realty Trust Beneish M-Score Historical Data

The historical data trend for Digital Realty Trust'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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Digital Realty Trust Beneish M-Score Chart

Digital Realty Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.70

-1.87

-2.55

-2.23

-2.32

Digital Realty Trust Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.16	-2.32	-2.47	-2.57	-2.69

Competitive Comparison of Digital Realty Trust's Beneish M-Score

For the REIT - Specialty subindustry, Digital Realty Trust'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.

Digital Realty Trust's Beneish M-Score Distribution in the REITs Industry

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

* The bar in red indicates where Digital Realty Trust's Beneish M-Score falls into.

Digital Realty Trust 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 Digital Realty Trust 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 * 0.9354

0.528 * 0.9819

0.404 * 0.9825

0.892 * 1.0278

0.115 * 0.9769

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0102

4.679 * -0.037759

0.327 * 0.9297

-2.69

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $1,274.46 Mil.
Revenue was 1431.214 + 1356.749 + 1331.143 + 1369.639 = $5,488.75 Mil.
Gross Profit was 774.853 + 749.473 + 738.354 + 722.483 = $2,985.16 Mil.
Total Current Assets was $3,450.07 Mil.
Total Assets was $45,295.39 Mil.
Property, Plant and Equipment(Net PPE) was $1,228.51 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,736.92 Mil.
Selling, General, & Admin. Expense(SGA) was $470.01 Mil.
Total Current Liabilities was $4,351.48 Mil.
Long-Term Debt & Capital Lease Obligation was $16,543.53 Mil.
Net Income was 51.193 + 80.22 + 281.508 + 28.31 = $441.23 Mil.
Non Operating Income was -16.116 + 0.152 + 238.579 + -25.377 = $197.24 Mil.
Cash Flow from Operations was 566.515 + 573.212 + 352.275 + 462.305 = $1,954.31 Mil.

Total Receivables was $1,325.73 Mil.
Revenue was 1402.432 + 1366.267 + 1338.723 + 1233.107 = $5,340.53 Mil.
Gross Profit was 718.32 + 715.468 + 722.719 + 695.506 = $2,852.01 Mil.
Total Current Assets was $2,387.78 Mil.
Total Assets was $41,932.52 Mil.
Property, Plant and Equipment(Net PPE) was $1,274.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,704.51 Mil.
Selling, General, & Admin. Expense(SGA) was $452.69 Mil.
Total Current Liabilities was $4,231.41 Mil.
Long-Term Debt & Capital Lease Obligation was $16,575.51 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)
	=	(1274.46 / 5488.745)	/	(1325.725 / 5340.529)
	=	0.232195	/	0.248239
	=	0.9354

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)
	=	(2852.013 / 5340.529)	/	(2985.163 / 5488.745)
	=	0.534032	/	0.54387
	=	0.9819

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 - (3450.065 + 1228.507) / 45295.391)	/	(1 - (2387.775 + 1274.41) / 41932.517)
	=	0.89671	/	0.912665
	=	0.9825

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
	=	5488.745	/	5340.529
	=	1.0278

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))
	=	(1704.514 / (1704.514 + 1274.41))	/	(1736.917 / (1736.917 + 1228.507))
	=	0.572191	/	0.585723
	=	0.9769

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)
	=	(470.006 / 5488.745)	/	(452.688 / 5340.529)
	=	0.085631	/	0.084765
	=	1.0102

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)
	=	((16543.528 + 4351.481) / 45295.391)	/	((16575.506 + 4231.405) / 41932.517)
	=	0.461305	/	0.4962
	=	0.9297

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
	=	(441.231 - 197.238	-	1954.307)	/	45295.391
	=	-0.037759

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.

Digital Realty Trust has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.

Digital Realty Trust Beneish M-Score Related Terms

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Digital Realty Trust Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Digital Realty Trust Inc (NYSE:DLRpK.PFD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

DLRpL.PFD:USA DLRpJ.PFD:USA DLR:USA DLR:Mexico 0I9F:UK FQI:Germany FQI:Germany D1LR34:Brazil

Address

5707 Southwest Parkway, Building 1, Suite 275, Austin, TX, USA, 78735

Website

https://www.digitalrealty.com

Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. The company operates as a real estate investment trust.