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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.
Good Sign:
Beneish M-Score -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Lennar's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Lennar was -0.02. The lowest was -2.80. And the median was -2.16.
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 Annual Data | |||||||||||||||||||||
Trend | Nov14 | Nov15 | Nov16 | Nov17 | Nov18 | Nov19 | Nov20 | Nov21 | Nov22 | Nov23 | |||||||||||
Beneish M-Score | Get a 7-Day Free Trial | -2.32 | -2.79 | -2.21 | -2.09 | -2.37 |
Lennar Quarterly Data | ||||||||||||||||||||
May19 | Aug19 | Nov19 | Feb20 | May20 | Aug20 | Nov20 | Feb21 | May21 | Aug21 | Nov21 | Feb22 | May22 | Aug22 | Nov22 | Feb23 | May23 | Aug23 | Nov23 | Feb24 | |
Beneish M-Score | Get a 7-Day Free Trial | -2.27 | -2.41 | -2.44 | -2.37 | -2.02 |
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.
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.
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 * 1.4148 | + | 0.528 * 1.1842 | + | 0.404 * 0.9418 | + | 0.892 * 1.0323 | + | 0.115 * 1 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.2083 | + | 4.679 * -0.00845 | - | 0.327 * 0.8337 | |||||||
= | -2.02 |
* 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 (Feb24) TTM: | Last Year (Feb23) TTM: |
Total Receivables was $3,328 Mil. Revenue was 7312.93 + 10968.183 + 8729.603 + 8045.151 = $35,056 Mil. Gross Profit was 1075.215 + 2046.865 + 1603.415 + 1334.665 = $6,060 Mil. Total Current Assets was $31,011 Mil. Total Assets was $38,951 Mil. Property, Plant and Equipment(Net PPE) was $0 Mil. Depreciation, Depletion and Amortization(DDA) was $117 Mil. Selling, General, & Admin. Expense(SGA) was $533 Mil. Total Current Liabilities was $1,565 Mil. Long-Term Debt & Capital Lease Obligation was $4,395 Mil. Net Income was 719.334 + 1361.287 + 1108.996 + 871.694 = $4,061 Mil. Non Operating Income was 12.892 + -126.46 + -14.11 + -51.292 = $-179 Mil. Cash Flow from Operations was 367.867 + 2589.197 + 951.865 + 660.471 = $4,569 Mil. |
Total Receivables was $2,279 Mil. Revenue was 6490.429 + 10174.367 + 8934.431 + 8358.696 = $33,958 Mil. Gross Profit was 956.039 + 1946.132 + 2075.524 + 1973.924 = $6,952 Mil. Total Current Assets was $28,657 Mil. Total Assets was $36,573 Mil. Property, Plant and Equipment(Net PPE) was $0 Mil. Depreciation, Depletion and Amortization(DDA) was $87 Mil. Selling, General, & Admin. Expense(SGA) was $427 Mil. Total Current Liabilities was $1,491 Mil. Long-Term Debt & Capital Lease Obligation was $5,222 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) |
= | (3328.252 / 35055.867) | / | (2278.759 / 33957.923) | |
= | 0.094941 | / | 0.067105 | |
= | 1.4148 |
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) | |
= | (6951.619 / 33957.923) | / | (6060.16 / 35055.867) | |
= | 0.204713 | / | 0.172871 | |
= | 1.1842 |
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 - (31011.456 + 0) / 38951.199) | / | (1 - (28657.081 + 0) / 36573.154) | |
= | 0.203838 | / | 0.216445 | |
= | 0.9418 |
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 | |
= | 35055.867 | / | 33957.923 | |
= | 1.0323 |
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)) |
= | (87.291 / (87.291 + 0)) | / | (116.998 / (116.998 + 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) |
= | (532.553 / 35055.867) | / | (426.943 / 33957.923) | |
= | 0.015192 | / | 0.012573 | |
= | 1.2083 |
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) |
= | ((4394.622 + 1565.464) / 38951.199) | / | ((5221.801 + 1490.808) / 36573.154) | |
= | 0.153014 | / | 0.183539 | |
= | 0.8337 |
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 | |
= | (4061.311 - -178.97 | - | 4569.4) | / | 38951.199 | |
= | -0.00845 |
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 -2.02 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Lennar's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Amy Banse | director | 345 PARK AVENUE, SAN JOSE CA 95110 |
Dacona Smith | director | 5505 BLUE LAGOON DRIVE, MIAMI FL 33126 |
Serena Wolfe | director | ANNALY CAPITAL MANAGEMENT, INC., 1211 AVE. OF THE AMERICAS, NEW YORK NY 10036 |
Jeffrey Joseph Mccall | officer: Senior Vice President | 26 TECHNOLOGY DRIVE, IRVINE CA 92618 |
Diane J Bessette | officer: Vice President and Controller | LENNAR CORPORATION, 700 NW 107 AVE 4TH FLR, MIAMI FL 33172 |
David M Collins | officer: Controller | LENNAR CORPORATION, 700 NW 107 AVENUE STE 400, MIAMI FL 33172 |
Mark Sustana | officer: General Counsel and Secretary | LENNAR CORPORATION, 700 NW 107 AVE 4TH FLR, MIAMI FL 33172 |
Jonathan M Jaffe | director, officer: Vice President | LENNAR CORPORATION, 700 NW 107 AVE 4TH FLR, MIAMI FL 33172 |
Scott D Stowell | director | |
Irving Bolotin | director | LENNAR CORPORATION, 700 NW 107 AVE 4TH FLR, MIAMI FL 33172 |
Armando J Olivera | director | C/O FLUOR CORPORATION, 6700 LAS COLINAS BLVD, IRVING TX 75039 |
Steven L Gerard | director | P.O. BOX 554, MILWAUKEE WI 53201-0554 |
Sherrill W Hudson | director | 201 SOUTH BISCAYNE BOULEVARD, 34TH FLOOR, MIAMI CENTER, MIAMI FL 33131 |
Jeffrey Sonnenfeld | director | 14 WALL ST 13TH FL, NEW YORK NY 10005 |
Theron I Gilliam | director | GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084 |
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