LGI Homes Beneish M-Score Historical Data
The historical data trend for LGI Homes'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.
LGI Homes Beneish M-Score Chart
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LGI Homes Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-1.61 |
-1.09 |
-1.79 |
-2.28 |
-1.46 |
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LGI Homes Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.28 |
-2.58 |
-2.14 |
-2.05 |
-1.46 |
Competitive Comparison of LGI Homes's Beneish M-Score
For the Residential Construction subindustry, LGI Homes'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.
LGI Homes's Beneish M-Score Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, LGI Homes's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where LGI Homes's Beneish M-Score falls into.
LGI Homes 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 LGI Homes 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 * 1.6056 | + | 0.528 * 1.2206 | + | 0.404 * 1.1051 | + | 0.892 * 1.0235 | + | 0.115 * 0.9073 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1768 | + | 4.679 * 0.066815 | - | 0.327 * 0.9608 |
| = | -1.46 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $41 Mil.
Revenue was 608.414 + 617.539 + 645.27 + 487.357 = $2,359 Mil.
Gross Profit was 142.629 + 158.805 + 141.937 + 98.816 = $542 Mil.
Total Current Assets was $3,198 Mil.
Total Assets was $3,408 Mil.
Property, Plant and Equipment(Net PPE) was $46 Mil.
Depreciation, Depletion and Amortization(DDA) was $2 Mil.
Selling, General, & Admin. Expense(SGA) was $309 Mil.
Total Current Liabilities was $235 Mil.
Long-Term Debt & Capital Lease Obligation was $1,253 Mil.
Net Income was 52.089 + 67.042 + 53.134 + 26.962 = $199 Mil.
Non Operating Income was 8.706 + 7.173 + 6.323 + 6.297 = $28 Mil.
Cash Flow from Operations was -34.293 + -115.51 + 15.235 + 77.6 = $-57 Mil.
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Total Receivables was $25 Mil.
Revenue was 488.262 + 547.074 + 723.069 + 546.05 = $2,304 Mil.
Gross Profit was 101.035 + 155.799 + 231.359 + 158.407 = $647 Mil.
Total Current Assets was $2,955 Mil.
Total Assets was $3,125 Mil.
Property, Plant and Equipment(Net PPE) was $33 Mil.
Depreciation, Depletion and Amortization(DDA) was $2 Mil.
Selling, General, & Admin. Expense(SGA) was $256 Mil.
Total Current Liabilities was $299 Mil.
Long-Term Debt & Capital Lease Obligation was $1,122 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) |
| = | (41.319 / 2358.58) | / | (25.143 / 2304.455) |
| = | 0.017519 | / | 0.010911 |
| | = | 1.6056 |
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) |
| = | (646.6 / 2304.455) | / | (542.187 / 2358.58) |
| = | 0.280587 | / | 0.229879 |
| | = | 1.2206 |
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 - (3197.945 + 45.522) / 3407.851) | / | (1 - (2955.437 + 32.997) / 3124.828) |
| = | 0.048237 | / | 0.043648 |
| | = | 1.1051 |
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 |
| = | 2358.58 | / | 2304.455 |
| | = | 1.0235 |
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)) |
| = | (1.576 / (1.576 + 32.997)) | / | (2.408 / (2.408 + 45.522)) |
| = | 0.045585 | / | 0.05024 |
| | = | 0.9073 |
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) |
| = | (308.932 / 2358.58) | / | (256.493 / 2304.455) |
| = | 0.130982 | / | 0.111303 |
| | = | 1.1768 |
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) |
| = | ((1253.279 + 235.484) / 3407.851) | / | ((1122.183 + 298.7) / 3124.828) |
| = | 0.436863 | / | 0.454708 |
| | = | 0.9608 |
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 |
| = | (199.227 - 28.499 | - | -56.968) | / | 3407.851 |
| | = | 0.066815 |
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.
LGI Homes has a M-score of -1.46 signals that the company is likely to be a manipulator.
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