Inland Real Estate (Inland Real Estate) Beneish M-Score

: -2.89 (As of Today)

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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 Inland Real Estate's Beneish M-Score or its related term are showing as below:

IRCPRA.PFD' s Beneish M-Score Range Over the Past 10 Years
Min: -10.3 Med: -2.58 Max: 2.25
Current: -2.89

During the past 13 years, the highest Beneish M-Score of Inland Real Estate was 2.25. The lowest was -10.30. And the median was -2.58.

Inland Real Estate Beneish M-Score Historical Data

The historical data trend for Inland 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.

* Premium members only.

Inland Real Estate Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Beneish M-Score

-10.30

0.92

-2.29

-2.56

-2.89

Inland Real Estate Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
Beneish M-Score																-2.56	-2.71	-2.70	-2.78	-2.89

Competitive Comparison

For the REIT - Retail subindustry, Inland 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.

Inland Real Estate Beneish M-Score Distribution

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

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

Inland 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 Inland 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 * 0.9512

0.528 * 0.9837

0.404 * 0.9121

0.892 * 0.9958

0.115 * 1.0537

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2362

4.679 * -0.058364

0.327 * 1.0235

-2.89

This Year (Dec15) TTM:

Last Year (Dec14) TTM:

Total Receivables was $36.20 Mil.
Revenue was 50.553 + 48.244 + 49.336 + 55.767 = $203.90 Mil.
Gross Profit was 43.089 + 41.73 + 42.884 + 46.847 = $174.55 Mil.
Total Current Assets was $45.72 Mil.
Total Assets was $1,521.50 Mil.
Property, Plant and Equipment(Net PPE) was $1,180.30 Mil.
Depreciation, Depletion and Amortization(DDA) was $68.33 Mil.
Selling, General, & Admin. Expense(SGA) was $28.59 Mil.
Total Current Liabilities was $69.15 Mil.
Long-Term Debt & Capital Lease Obligation was $849.09 Mil.
Net Income was 1.656 + 12.274 + 8.661 + 2.94 = $25.53 Mil.
Non Operating Income was 3.747 + 9.326 + 1.771 + 2.136 = $16.98 Mil.
Cash Flow from Operations was 23.273 + 24.07 + 29.27 + 20.739 = $97.35 Mil.

Total Receivables was $38.21 Mil.
Revenue was 50.638 + 48.21 + 48.807 + 57.106 = $204.76 Mil.
Gross Profit was 43.387 + 42.083 + 42.227 + 44.732 = $172.43 Mil.
Total Current Assets was $56.60 Mil.
Total Assets was $1,572.95 Mil.
Property, Plant and Equipment(Net PPE) was $1,181.46 Mil.
Depreciation, Depletion and Amortization(DDA) was $72.30 Mil.
Selling, General, & Admin. Expense(SGA) was $23.23 Mil.
Total Current Liabilities was $61.61 Mil.
Long-Term Debt & Capital Lease Obligation was $865.88 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)
	=	(36.195 / 203.9)	/	(38.211 / 204.761)
	=	0.177513	/	0.186613
	=	0.9512

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)
	=	(172.429 / 204.761)	/	(174.55 / 203.9)
	=	0.842099	/	0.856057
	=	0.9837

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 - (45.718 + 1180.303) / 1521.5)	/	(1 - (56.596 + 1181.463) / 1572.951)
	=	0.194202	/	0.212907
	=	0.9121

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
	=	203.9	/	204.761
	=	0.9958

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))
	=	(72.295 / (72.295 + 1181.463))	/	(68.327 / (68.327 + 1180.303))
	=	0.057663	/	0.054722
	=	1.0537

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)
	=	(28.591 / 203.9)	/	(23.225 / 204.761)
	=	0.140221	/	0.113425
	=	1.2362

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)
	=	((849.09 + 69.154) / 1521.5)	/	((865.877 + 61.608) / 1572.951)
	=	0.603512	/	0.589646
	=	1.0235

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
	=	(25.531 - 16.98	-	97.352)	/	1521.5
	=	-0.058364

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.

Inland Real Estate has a M-score of -2.89 suggests that the company is unlikely to be a manipulator.

Inland Real Estate Beneish M-Score Related Terms

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Inland Real Estate (Inland Real Estate) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Inland Real Estate Corp (NYSE:IRCPRA.PFD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.inlandrealestate.com

Inland Real Estate Corp was formed on May 12, 1994. It is a publicly held real estate investment trust ("REIT") that owns, operates and develops open-air neighborhood, community and power shopping centers and single-tenant retail properties located in Midwest markets. Approximately fifty-nine percent of its total retail portfolio gross leasable area is located in the Chicago Metropolitan Statistical Area, with its second largest market concentration being approximately seventeen percent in the Minneapolis-St. Paul MSA. Tenants at the Company's retail properties primarily provide "everyday" goods and services to consumers. The primary drivers of its internal income growth are rental rate increases over expiring rates on new and renewal leases and cost savings from operational efficiencies. The Company's business is competitive. It competes with other property owners on the basis of location, rental rates, operating expenses, visibility, quality of the property, volume of traffic, strength and name recognition of other tenants at each location and other factors. These competitive factors affect the level of occupancy and rental rates that it is able to achieve at its investment properties. In addition, the Company's tenants compete against other forms of retailing such as catalog companies and e-commerce websites that offer similar retail products. The Company competes with other real estate companies, and at its current investment properties, it competes with other owners of similar properties for tenants. Inland Real Estate's properties are also subject to various federal, state and local regulatory requirements, such as state and local fire and life safety requirements.