Glimcher 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 Glimcher Realty Trust 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 * 0.8772 | + | 0.528 * 1 | + | 0.404 * 0.8036 | + | 0.892 * 1.2625 | + | 0.115 * 0.942 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * -0.9244 | + | 4.679 * -0.057124 | - | 0.327 * 1.0548 |
| = | -2.40 |
* 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 (Sep14) TTM: | Last Year (Sep13) TTM: |
Total Receivables was €26.3 Mil.
Revenue was 60.469 + 56.961 + 52.586 + 60.195 = €230.2 Mil.
Gross Profit was 60.469 + 56.961 + 52.586 + 60.195 = €230.2 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €2,020.3 Mil.
Property, Plant and Equipment(Net PPE) was €1,852.1 Mil.
Depreciation, Depletion and Amortization(DDA) was €93.7 Mil.
Selling, General, & Admin. Expense(SGA) was €22.0 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,424.3 Mil.
Net Income was 10.945 + 0.214 + -1.192 + -31.481 = €-21.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.0 Mil.
Cash Flow from Operations was 27.009 + 27.484 + 18.73 + 20.669 = €93.9 Mil.
|
Total Receivables was €23.8 Mil.
Revenue was 55.316 + 58.438 + 52.505 + 16.086 = €182.3 Mil.
Gross Profit was 55.316 + 58.438 + 52.505 + 16.086 = €182.3 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €1,957.8 Mil.
Property, Plant and Equipment(Net PPE) was €1,755.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €83.4 Mil.
Selling, General, & Admin. Expense(SGA) was €-18.8 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,308.6 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) |
| = | (26.323 / 230.211) | / | (23.77 / 182.345) |
| = | 0.114343 | / | 0.130357 |
| | = | 0.8772 |
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) |
| = | (182.345 / 182.345) | / | (230.211 / 230.211) |
| = | 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 + 1852.064) / 2020.274) | / | (1 - (0 + 1754.996) / 1957.846) |
| = | 0.083261 | / | 0.103609 |
| | = | 0.8036 |
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 |
| = | 230.211 | / | 182.345 |
| | = | 1.2625 |
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)) |
| = | (83.408 / (83.408 + 1754.996)) | / | (93.716 / (93.716 + 1852.064)) |
| = | 0.04537 | / | 0.048164 |
| | = | 0.942 |
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) |
| = | (21.98 / 230.211) | / | (-18.834 / 182.345) |
| = | 0.095478 | / | -0.103288 |
| | = | -0.9244 |
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) |
| = | ((1424.29 + 0) / 2020.274) | / | ((1308.623 + 0) / 1957.846) |
| = | 0.704998 | / | 0.668399 |
| | = | 1.0548 |
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 |
| = | (-21.514 - 0 | - | 93.892) | / | 2020.274 |
| | = | -0.057124 |
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.
Glimcher Realty Trust has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.
Glimcher Realty Trust (FRA:GRY) Business Description
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Glimcher Realty Trust is a self-administered and self-managed Maryland real estate investment trust which was formed on September 1, 1993. The Company and its affiliates are engaged in owning, leasing, acquiring, developing and operating a portfolio of retail properties consisting of regional and super regional malls and community shopping centers. At December 31, 2013, the Company owned material interests in and managed 28 properties - 25 wholly-owned and 3 partially owned through joint ventures which are located in 15 states. The Properties contain an aggregate of approximately 19.3 million square feet of gross leasable area of which approximately 95.6% was occupied at December 31, 2013. The Malls provide a range of shopping alternatives to serve the needs of customers in all market segments. The Company's Malls are in various formats such as enclosed regional malls, open-air retail centers, and outlet centers. Malls are generally anchored by multiple department stores such as Belk's, The Bon-Ton, Boscov's, Dick's Sporting Goods, Dillard's, Elder-Beerman, Herberger's, JCPenney, Kohl's, Macy's, Saks, Sears, and Von Maur. Mall stores, most of which are national retailers, include Abercrombie & Fitch, American Eagle Outfitters, Apple, Bath & Body Works, Express, Finish Line, Foot Locker, Forever 21, H&M, Hallmark, Kay Jewelers, The Limited, lululemon athletica, Pacific Sunwear, and Victoria's Secret. The Malls also have additional restaurants and retail businesses, such as Benihana, Cheesecake Factory, P.F. Chang's, and Red Lobster, located along the perimeter of the parking areas. The Company's Community Centers are designed to attract local and regional area customers and are typically anchored by a combination of discount department stores or supermarkets which attract shoppers to each center's smaller shops. The tenants at the Company's Community Centers typically offer day-to-day necessities and value-oriented merchandise. Many of the Community Centers have retail businesses or restaurants located along the perimeter of the parking areas. There are numerous shopping facilities that compete with the Company's Properties in attracting retailers to lease space.
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