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GuruFocus has detected 4 Warning Signs with Macerich Co $MAC.
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Macerich Co (NYSE:MAC)
Beneish M-Score
-2.62 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Macerich Co has a M-score of -2.62 suggests that the company is not a manipulator.

MAC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Max: 11.4
Current: -2.62

-3.63
11.4

During the past 13 years, the highest Beneish M-Score of Macerich Co was 11.40. The lowest was -3.63. And the median was -2.55.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Macerich Co 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 * 1.1804+0.528 * 1.0367+0.404 * 0.9767+0.892 * 0.8421+0.115 * 1.1801
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1075+4.679 * -0.0327-0.327 * 1.0895
=-2.62

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $113 Mil.
Revenue was 247.045 + 272 + 253.367 + 259.904 = $1,032 Mil.
Gross Profit was 142.631 + 171.082 + 153.772 + 161.695 = $629 Mil.
Total Current Assets was $255 Mil.
Total Assets was $9,712 Mil.
Property, Plant and Equipment(Net PPE) was $7,207 Mil.
Depreciation, Depletion and Amortization(DDA) was $341 Mil.
Selling, General & Admin. Expense(SGA) was $28 Mil.
Total Current Liabilities was $381 Mil.
Long-Term Debt was $4,902 Mil.
Net Income was 69.243 + 37.128 + 13.73 + 45.222 = $165 Mil.
Non Operating Income was 61.531 + 4.827 + -5.782 + 22.319 = $83 Mil.
Cash Flow from Operations was 102.704 + 98.447 + 111.378 + 87.812 = $400 Mil.
Accounts Receivable was $113 Mil.
Revenue was 256 + 320.758 + 326.262 + 322.794 = $1,226 Mil.
Gross Profit was 148.776 + 206.813 + 210.3 + 208.678 = $775 Mil.
Total Current Assets was $262 Mil.
Total Assets was $10,211 Mil.
Property, Plant and Equipment(Net PPE) was $7,527 Mil.
Depreciation, Depletion and Amortization(DDA) was $424 Mil.
Selling, General & Admin. Expense(SGA) was $30 Mil.
Total Current Liabilities was $440 Mil.
Long-Term Debt was $4,659 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(112.52 / 1032.316) / (113.188 / 1225.814)
=0.10899763 / 0.09233701
=1.1804

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)
=(774.567 / 1225.814) / (629.18 / 1032.316)
=0.63187971 / 0.60948392
=1.0367

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (254.83 + 7206.598) / 9712.064) / (1 - (261.926 + 7526.652) / 10211.345)
=0.23173612 / 0.23726228
=0.9767

4. SGI = Sales Growth Index

Ratio of sales 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
=1032.316 / 1225.814
=0.8421

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(423.591 / (423.591 + 7526.652)) / (340.754 / (340.754 + 7206.598))
=0.05328026 / 0.04514882
=1.1801

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(28.051 / 1032.316) / (30.077 / 1225.814)
=0.02717288 / 0.02453635
=1.1075

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4902.408 + 380.61) / 9712.064) / ((4658.968 + 439.572) / 10211.345)
=0.5439645 / 0.49930151
=1.0895

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
=(165.323 - 82.895 - 400.341) / 9712.064
=-0.0327

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Macerich Co has a M-score of -2.62 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Macerich Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.19480.81830.87291.06261.18470.80550.75861.2361.39031.1868
GMI 1.44491.16561.02181.04070.99480.96980.98290.98120.94741.0382
AQI 0.54681.35811.03470.94961.14870.83650.83370.9951.3431.2116
SGI 0.98151.08780.90950.8840.96841.18061.26421.07361.16550.8083
DEPI 1.06360.85890.92491.0661.02071.05570.86511.4220.6731.105
SGAI 1.24970.9151.72590.90311.05290.81891.07620.98640.87141.1686
LVGI 1.17451.0110.3631.80061.12531.0010.95870.96061.01721.0015
TATA -0.0483-0.0289-0.0213-0.0333-0.0467-0.0339-0.0149-0.0335-0.0434-0.0363
M-score -2.58-2.48-2.68-2.92-2.55-2.70-2.63-2.30-2.09-2.56

Macerich Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.2361.02041.04350.94041.39030.94290.98671.21971.18681.1804
GMI 0.98120.96790.95130.93650.94740.95870.98861.02341.03821.0367
AQI 0.9950.98621.05230.99111.3431.70271.49921.47771.21160.9767
SGI 1.07361.10321.1591.21211.16551.05760.94740.84480.80830.8421
DEPI 1.4221.32531.21851.14470.6730.66380.75690.85831.1051.1801
SGAI 0.98640.98031.06471.08380.87140.91870.95511.03781.16861.1075
LVGI 0.96060.96980.97470.96151.01720.92520.9670.95881.00151.0895
TATA -0.0335-0.0393-0.0401-0.0414-0.0434-0.0448-0.0426-0.0408-0.0363-0.0327
M-score -2.30-2.52-2.47-2.56-2.09-2.43-2.55-2.41-2.56-2.62
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