Meritage Homes Beneish M-Score Historical Data
The historical data trend for Meritage 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.
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Meritage 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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6.15 |
-2.94 |
-1.26 |
-1.56 |
-1.83 |
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Meritage 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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-1.56 |
-0.63 |
-1.32 |
-0.98 |
-1.83 |
Competitive Comparison
For the Residential Construction subindustry, Meritage 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.
Meritage Homes Beneish M-Score Distribution
For the Homebuilding & Construction industry and Consumer Cyclical sector, Meritage Homes's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Meritage Homes's Beneish M-Score falls into.
Meritage 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 Meritage 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 * 1.2741 | + | 0.528 * 1.1566 | + | 0.404 * 1.1601 | + | 0.892 * 0.9745 | + | 0.115 * 1.1449 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.2257 | + | 4.679 * 0.052909 | - | 0.327 * 0.8663 |
| = | -1.83 |
* 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 $267 Mil.
Revenue was 1662.823 + 1621.671 + 1567.815 + 1285.298 = $6,138 Mil.
Gross Profit was 422.075 + 435.523 + 374.6 + 286.824 = $1,519 Mil.
Total Current Assets was $6,021 Mil.
Total Assets was $6,353 Mil.
Property, Plant and Equipment(Net PPE) was $49 Mil.
Depreciation, Depletion and Amortization(DDA) was $25 Mil.
Selling, General, & Admin. Expense(SGA) was $617 Mil.
Total Current Liabilities was $642 Mil.
Long-Term Debt & Capital Lease Obligation was $1,062 Mil.
Net Income was 198.851 + 221.76 + 186.836 + 131.301 = $739 Mil.
Non Operating Income was 12.911 + 12.424 + 12.862 + 8.844 = $47 Mil.
Cash Flow from Operations was -104.52 + 104.207 + 231.413 + 124.472 = $356 Mil.
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Total Receivables was $215 Mil.
Revenue was 2000.666 + 1585.667 + 1419.041 + 1292.78 = $6,298 Mil.
Gross Profit was 505.759 + 455.892 + 449.468 + 391.776 = $1,803 Mil.
Total Current Assets was $5,512 Mil.
Total Assets was $5,772 Mil.
Property, Plant and Equipment(Net PPE) was $39 Mil.
Depreciation, Depletion and Amortization(DDA) was $25 Mil.
Selling, General, & Admin. Expense(SGA) was $516 Mil.
Total Current Liabilities was $613 Mil.
Long-Term Debt & Capital Lease Obligation was $1,173 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) |
| = | (266.972 / 6137.607) | / | (215.019 / 6298.154) |
| = | 0.043498 | / | 0.03414 |
| | = | 1.2741 |
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) |
| = | (1802.895 / 6298.154) | / | (1519.022 / 6137.607) |
| = | 0.286258 | / | 0.247494 |
| | = | 1.1566 |
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 - (6020.854 + 48.953) / 6353.134) | / | (1 - (5511.572 + 38.635) / 5772.101) |
| = | 0.044596 | / | 0.038443 |
| | = | 1.1601 |
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 |
| = | 6137.607 | / | 6298.154 |
| | = | 0.9745 |
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)) |
| = | (24.748 / (24.748 + 38.635)) | / | (25.334 / (25.334 + 48.953)) |
| = | 0.390452 | / | 0.341029 |
| | = | 1.1449 |
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) |
| = | (616.633 / 6137.607) | / | (516.25 / 6298.154) |
| = | 0.100468 | / | 0.081968 |
| | = | 1.2257 |
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) |
| = | ((1062.255 + 641.619) / 6353.134) | / | ((1173.429 + 613.486) / 5772.101) |
| = | 0.268194 | / | 0.309578 |
| | = | 0.8663 |
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 |
| = | (738.748 - 47.041 | - | 355.572) | / | 6353.134 |
| | = | 0.052909 |
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.
Meritage Homes has a M-score of -1.83 suggests that the company is unlikely to be a manipulator.
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