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D.R. Horton Beneish M-Score

: -1.35 (As of Today)
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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.

Warning Sign:

Beneish M-Score -1.35 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for D.R. Horton's Beneish M-Score or its related term are showing as below:

DHI' s Beneish M-Score Range Over the Past 10 Years
Min: -8.77   Med: -1.82   Max: 12.45
Current: -1.35

During the past 13 years, the highest Beneish M-Score of D.R. Horton was 12.45. The lowest was -8.77. And the median was -1.82.


D.R. Horton Beneish M-Score Historical Data

The historical data trend for D.R. Horton'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.

* Premium members only.

D.R. Horton Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.76 -2.33 -1.73 -2.10 -1.81

D.R. Horton Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.83 -1.81 -1.86 -1.72 -1.35

Competitive Comparison

For the Residential Construction subindustry, D.R. Horton'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.

   

D.R. Horton Beneish M-Score Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where D.R. Horton's Beneish M-Score falls into.



D.R. Horton 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 D.R. Horton 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 * 0.9736+0.528 * 0.8695+0.404 * 1.4159+0.892 * 1.2258+0.115 * 0.7069
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9265+4.679 * 0.1907-0.327 * 1.0409
=-1.35

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $364 Mil.
Revenue was 8788.1 + 7999 + 7053.4 + 8109.3 = $31,950 Mil.
Gross Profit was 2908.8 + 2569.1 + 2147.7 + 2406.1 = $10,032 Mil.
Total Current Assets was $27,554 Mil.
Total Assets was $28,870 Mil.
Property, Plant and Equipment(Net PPE) was $43 Mil.
Depreciation, Depletion and Amortization(DDA) was $71 Mil.
Selling, General, & Admin. Expense(SGA) was $2,795 Mil.
Total Current Liabilities was $3,052 Mil.
Long-Term Debt & Capital Lease Obligation was $6,019 Mil.
Net Income was 1647.8 + 1436.3 + 1141.6 + 1339 = $5,565 Mil.
Non Operating Income was 15.1 + 9.3 + 15.5 + 13.4 = $53 Mil.
Cash Flow from Operations was 271.8 + -660.5 + -174.1 + 568.9 = $6 Mil.
Total Receivables was $305 Mil.
Revenue was 7284.6 + 6446.9 + 5933.4 + 6400.3 = $26,065 Mil.
Gross Profit was 2072 + 1796 + 1600.9 + 1646.8 = $7,116 Mil.
Total Current Assets was $21,004 Mil.
Total Assets was $21,794 Mil.
Property, Plant and Equipment(Net PPE) was $110 Mil.
Depreciation, Depletion and Amortization(DDA) was $87 Mil.
Selling, General, & Admin. Expense(SGA) was $2,461 Mil.
Total Current Liabilities was $2,126 Mil.
Long-Term Debt & Capital Lease Obligation was $4,453 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)
=(364 / 31949.8) / (305 / 26065.2)
=0.01139287 / 0.01170143
=0.9736

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)
=(7115.7 / 26065.2) / (10031.7 / 31949.8)
=0.27299618 / 0.31398319
=0.8695

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 - (27553.6 + 42.7) / 28869.9) / (1 - (21004.4 + 110.1) / 21793.5)
=0.04411515 / 0.03115608
=1.4159

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
=31949.8 / 26065.2
=1.2258

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))
=(86.6 / (86.6 + 110.1)) / (70.5 / (70.5 + 42.7))
=0.44026436 / 0.62279152
=0.7069

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)
=(2794.6 / 31949.8) / (2460.8 / 26065.2)
=0.08746847 / 0.0944094
=0.9265

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)
=((6019.2 + 3052) / 28869.9) / ((4452.8 + 2126) / 21793.5)
=0.31420961 / 0.30186982
=1.0409

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
=(5564.7 - 53.3 - 6.1) / 28869.9
=0.1907

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.

D.R. Horton has a M-score of -1.35 signals that the company is likely to be a manipulator.


D.R. Horton Beneish M-Score Related Terms

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D.R. Horton Business Description

D.R. Horton logo
Address
1341 Horton Circle, Arlington, TX, USA, 76011
D.R. Horton is a leading homebuilder in the United States with operations in 98 markets across 31 states. D.R. Horton mainly builds single-family detached homes (over 90% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are in Arlington, Texas, and it manages six regional segments across the United States.
Executives
Romanowski Paul J officer: EVP and COO 1341 HORTON CIRCLE ARLINGTON TX 76011
Carson Benjamin Sr director PO BOX 3599 BATTLE CREEK MI 49016-3599
Miller Maribess L director 2711 N. HASKELL AVENUE SUITE 2300 DALLAS TX 75204
Odom Aron M. officer: VP, Controller and PAO 1341 HORTON CIRCLE ARLINGTON TX 76011
Murray Michael J officer: EVP and COO 1361 HORTON CIRCLE ARLINGTON TX 76011
Allen Barbara K director 1361 HORTON CIRCLE ARLINGTON TX 76011
Auld David V officer: EVP and COO 1361 HORTON CIRCLE ARLINGTON TX 76011
Buchanan Michael R director 1341 HORTON CIRCLE ARLINGTON TX 76011
Hewatt Michael W director 1361 HORTON CIRCLE ARLINGTON TX 76011
Anderson Bradley S director 1361 HORTON CIRCLE ARLINGTON TX 76011
Dwyer Stacey officer: EVP and Treasurer 301 COMMERCE STREET SUITE 500 FORT WORTH TX 76102
Horton Donald R director, officer: Chairman 1361 HORTON CIRCLE ARLINGTON TX 76011
Wheat Bill W director, officer: EVP and CFO 1361 HORTON CIRCLE ARLINGTON TX 76011
Tomnitz Donald J director, officer: President and CEO 2221 E. LAMAR BLVD. SUITE 790 ARLINGTON TX 76006
Scott Bobby G director 301 COMMERCE STREET SUITE 500 FORT WORTH TX 76102

D.R. Horton Headlines

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