Lennar Beneish M-Score Historical Data
The historical data trend for Lennar'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.
Lennar Beneish M-Score Chart
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Lennar Annual Data
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Trend |
Nov14 |
Nov15 |
Nov16 |
Nov17 |
Nov18 |
Nov19 |
Nov20 |
Nov21 |
Nov22 |
Nov23 |
| Beneish M-Score |
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-2.32 |
-2.79 |
-2.21 |
-1.62 |
-2.37 |
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Lennar Quarterly Data
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Nov19 |
Feb20 |
May20 |
Aug20 |
Nov20 |
Feb21 |
May21 |
Aug21 |
Nov21 |
Feb22 |
May22 |
Aug22 |
Nov22 |
Feb23 |
May23 |
Aug23 |
Nov23 |
Feb24 |
May24 |
Aug24 |
| Beneish M-Score |
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-2.44 |
-2.37 |
0.38 |
0.63 |
0.86 |
Competitive Comparison of Lennar's Beneish M-Score
For the Residential Construction subindustry, Lennar'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.
Lennar's Beneish M-Score Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Lennar's Beneish M-Score falls into.
Lennar 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 Lennar 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 * 1.2112 | + | 0.528 * 1.0632 | + | 0.404 * 0.9638 | + | 0.892 * 1.0904 | + | 0.115 * 27.398 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.2678 | + | 4.679 * 0.001079 | - | 0.327 * 0.8505 |
| = | 0.86 |
* 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 (Aug24) TTM: | Last Year (Aug23) TTM: |
Total Receivables was $3,513 Mil.
Revenue was 9416.042 + 8765.592 + 7312.93 + 10968.183 = $36,463 Mil.
Gross Profit was 1472.246 + 1395.38 + 1075.215 + 2046.865 = $5,990 Mil.
Total Current Assets was $28,504 Mil.
Total Assets was $39,741 Mil.
Property, Plant and Equipment(Net PPE) was $3,013 Mil.
Depreciation, Depletion and Amortization(DDA) was $114 Mil.
Selling, General, & Admin. Expense(SGA) was $615 Mil.
Total Current Liabilities was $1,788 Mil.
Long-Term Debt & Capital Lease Obligation was $3,809 Mil.
Net Income was 1162.674 + 954.311 + 719.334 + 1361.287 = $4,198 Mil.
Non Operating Income was 227.559 + 22.659 + 12.892 + -126.46 = $137 Mil.
Cash Flow from Operations was 819.248 + 241.759 + 367.867 + 2589.197 = $4,018 Mil.
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Total Receivables was $2,660 Mil.
Revenue was 8729.603 + 8045.151 + 6490.429 + 10174.367 = $33,440 Mil.
Gross Profit was 1603.415 + 1334.665 + 956.039 + 1946.132 = $5,840 Mil.
Total Current Assets was $29,400 Mil.
Total Assets was $37,438 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $110 Mil.
Selling, General, & Admin. Expense(SGA) was $445 Mil.
Total Current Liabilities was $1,722 Mil.
Long-Term Debt & Capital Lease Obligation was $4,478 Mil.
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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) |
| = | (3512.627 / 36462.747) | / | (2659.729 / 33439.55) |
| = | 0.096335 | / | 0.079538 |
| | = | 1.2112 |
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) |
| = | (5840.251 / 33439.55) | / | (5989.706 / 36462.747) |
| = | 0.174651 | / | 0.164269 |
| | = | 1.0632 |
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 - (28504.37 + 3012.981) / 39740.982) | / | (1 - (29399.858 + 0) / 37438.125) |
| = | 0.206931 | / | 0.214708 |
| | = | 0.9638 |
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 |
| = | 36462.747 | / | 33439.55 |
| | = | 1.0904 |
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)) |
| = | (110.3 / (110.3 + 0)) | / | (114.137 / (114.137 + 3012.981)) |
| = | 1 | / | 0.036499 |
| | = | 27.398 |
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) |
| = | (615.311 / 36462.747) | / | (445.075 / 33439.55) |
| = | 0.016875 | / | 0.01331 |
| | = | 1.2678 |
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) |
| = | ((3808.672 + 1788.117) / 39740.982) | / | ((4477.759 + 1721.53) / 37438.125) |
| = | 0.140832 | / | 0.165588 |
| | = | 0.8505 |
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 |
| = | (4197.606 - 136.65 | - | 4018.071) | / | 39740.982 |
| | = | 0.001079 |
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.
Lennar has a M-score of 0.86 signals that the company is likely to be a manipulator.
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