Annaly Capital Management (FRA:AAYA) Beneish M-Score: -1.00 (As of Jul. 02, 2026)


FRA:AAYA Annaly Capital Management Inc FRA:AAYA
24 GF Score
Price €19.58
! 8 Warning Signs
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What is Annaly Capital Management Beneish M-Score?

Annaly Capital Management FRA:AAYA -0.71% 24 Beneish M-Score is -1.00 as of Jul. 02, 2026. GuruFocus rates FRA:AAYA with a GF Score™ of 24/100. The stock has 8 warning signs investors should review. Among 763 REITs companies, Annaly Capital Management ranks worse than 91.48% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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.

Warning Sign:

Beneish M-Score -1 higher than -1.78, which implies that the company might have manipulated its financial results.

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

FRA:AAYA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84   Med: -1.33   Max: 4.14
Current: -1

During the past 13 years, the highest Beneish M-Score of Annaly Capital Management was 4.14. The lowest was -2.84. And the median was -1.33.

FRA:AAYA
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Annaly Capital Management Inc FRA:AAYA
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Annaly Capital Management 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 Annaly Capital Management 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 * 0.7607+0.528 * 1+0.404 * 1+0.892 * 2.4861+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4208+4.679 * 0.01964-0.327 * 1.0697
=-1.21

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €1,469 Mil.
Revenue was 287.385 + 906.439 + 754.514 + 96.089 = €2,044 Mil.
Gross Profit was 287.385 + 906.439 + 754.514 + 96.089 = €2,044 Mil.
Total Current Assets was €0 Mil.
Total Assets was €119,835 Mil.
Property, Plant and Equipment(Net PPE) was €0 Mil.
Depreciation, Depletion and Amortization(DDA) was €30 Mil.
Selling, General, & Admin. Expense(SGA) was €175 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €28,721 Mil.
Net Income was 244.494 + 865.524 + 709.243 + 49.505 = €1,869 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was -1212.249 + 550.269 + 20.528 + 156.702 = €-485 Mil.
 Total Receivables was €777 Mil.
Revenue was 165.795 + 503.721 + 108.243 + 44.582 = €822 Mil.
Gross Profit was 165.795 + 503.721 + 108.243 + 44.582 = €822 Mil.
Total Current Assets was €0 Mil.
Total Assets was €97,232 Mil.
Property, Plant and Equipment(Net PPE) was €0 Mil.
Depreciation, Depletion and Amortization(DDA) was €30 Mil.
Selling, General, & Admin. Expense(SGA) was €168 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €21,784 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)
=(1468.577 / 2044.427) / (776.509 / 822.341)
=0.718332 / 0.944266
=0.7607

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)
=(822.341 / 822.341) / (2044.427 / 2044.427)
=1 / 1
=1

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 - (0 + 0) / 119835.016) / (1 - (0 + 0) / 97231.695)
=1 / 1
=1

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
=2044.427 / 822.341
=2.4861

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))
=(30.32 / (30.32 + 0)) / (29.621 / (29.621 + 0))
=1 / 1
=1

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)
=(175.455 / 2044.427) / (167.731 / 822.341)
=0.085821 / 0.203968
=0.4208

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)
=((28720.971 + 0) / 119835.016) / ((21784.181 + 0) / 97231.695)
=0.239671 / 0.224044
=1.0697

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
=(1868.766 - 0 - -484.75) / 119835.016
=0.01964

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.

Annaly Capital Management has a M-score of -1.21 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.00 mean?
Annaly Capital Management (FRA:AAYA) has a Beneish M-Score of -1.00 as of Jul. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Annaly Capital Management and its competitors. According to the industry distribution chart, Annaly Capital Management ranks #698 out of 763 companies in the REITs industry, placing it in the top 91.5%.
Is Annaly Capital Management's Beneish M-Score too high?
Annaly Capital Management's current Beneish M-Score is -1.00. Based on the distribution chart, Annaly Capital Management ranks #698 out of 763 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Annaly Capital Management has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Annaly Capital Management's Beneish M-Score compare to AGNC and STWD?
According to the REITs industry distribution chart, Annaly Capital Management ranks #698 out of 763 companies for Beneish M-Score. This places Annaly Capital Management in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a REITs company?
A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Annaly Capital Management and its competitors. Annaly Capital Management's current Beneish M-Score is -1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Annaly Capital Management stock overvalued right now?
Annaly Capital Management (FRA:AAYA) has a current Beneish M-Score of -1.00. The current Beneish M-Score is -1.00. Annaly Capital Management's overall GF Score™ is 24/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Annaly Capital Management (FRA:AAYA), the current Beneish M-Score is -1.00 as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Annaly Capital Management Business Description

Industry Real EstateREITs
Address 1211 Avenue of the Americas, New York, NY, USA, 10036
Annaly Capital Management Inc is an American mortgage real estate investment trust. Its business objective is to generate net income for distribution to its stockholders and optimize its returns through prudent management of its diversified investment strategies. The company's reportable operating segments are: the Agency segment, which invests in Agency mortgage-backed securities collateralized by residential mortgages; the Residential Credit segment, which invests in non-Agency residential whole loans and securitized products within the residential and commercial markets; the Mortgage Servicing Rights segment; and Corporate & Other. Maximum revenue for the company is generated from its Agency segment.
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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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