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.
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D.R. Horton Annual Data
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Trend |
Sep14 |
Sep15 |
Sep16 |
Sep17 |
Sep18 |
Sep19 |
Sep20 |
Sep21 |
Sep22 |
Sep23 |
| Beneish M-Score |
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-1.73 |
-2.11 |
-1.81 |
-1.17 |
-2.38 |
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D.R. Horton 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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-1.53 |
-2.01 |
-2.14 |
-2.38 |
-2.22 |
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 * 0.9364 | + | 0.528 * 1.1726 | + | 0.404 * 0.9511 | + | 0.892 * 1.0666 | + | 0.115 * 0.9376 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0443 | + | 4.679 * 0.034777 | - | 0.327 * 0.8847 |
| = | -2.22 |
* 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 $393 Mil.
Revenue was 7726 + 10504 + 9725.6 + 7972.9 = $35,929 Mil.
Gross Profit was 2006.2 + 2823.3 + 2583.8 + 1976.7 = $9,390 Mil.
Total Current Assets was $32,058 Mil.
Total Assets was $33,382 Mil.
Property, Plant and Equipment(Net PPE) was $43 Mil.
Depreciation, Depletion and Amortization(DDA) was $92 Mil.
Selling, General, & Admin. Expense(SGA) was $3,347 Mil.
Total Current Liabilities was $2,866 Mil.
Long-Term Debt & Capital Lease Obligation was $5,335 Mil.
Net Income was 947.4 + 1509.7 + 1335.1 + 942.2 = $4,734 Mil.
Non Operating Income was 76.3 + 81.2 + 52.2 + 42.2 = $252 Mil.
Cash Flow from Operations was -153.4 + 2043 + 787.5 + 644.5 = $3,322 Mil.
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Total Receivables was $394 Mil.
Revenue was 7257.8 + 9639.4 + 8788.1 + 7999 = $33,684 Mil.
Gross Profit was 1966.5 + 2878.4 + 2908.8 + 2569.1 = $10,323 Mil.
Total Current Assets was $28,998 Mil.
Total Assets was $30,265 Mil.
Property, Plant and Equipment(Net PPE) was $47 Mil.
Depreciation, Depletion and Amortization(DDA) was $82 Mil.
Selling, General, & Admin. Expense(SGA) was $3,005 Mil.
Total Current Liabilities was $2,666 Mil.
Long-Term Debt & Capital Lease Obligation was $5,738 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) |
| = | (393.3 / 35928.5) | / | (393.8 / 33684.3) |
| = | 0.010947 | / | 0.011691 |
| | = | 0.9364 |
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) |
| = | (10322.8 / 33684.3) | / | (9390 / 35928.5) |
| = | 0.306457 | / | 0.261352 |
| | = | 1.1726 |
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 - (32058 + 43.3) / 33381.6) | / | (1 - (28997.5 + 46.6) / 30264.5) |
| = | 0.038353 | / | 0.040324 |
| | = | 0.9511 |
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 |
| = | 35928.5 | / | 33684.3 |
| | = | 1.0666 |
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)) |
| = | (81.8 / (81.8 + 46.6)) | / | (91.8 / (91.8 + 43.3)) |
| = | 0.637072 | / | 0.679497 |
| | = | 0.9376 |
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) |
| = | (3346.9 / 35928.5) | / | (3004.8 / 33684.3) |
| = | 0.093154 | / | 0.089205 |
| | = | 1.0443 |
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) |
| = | ((5334.9 + 2865.8) / 33381.6) | / | ((5738.2 + 2666) / 30264.5) |
| = | 0.245665 | / | 0.277692 |
| | = | 0.8847 |
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 |
| = | (4734.4 - 251.9 | - | 3321.6) | / | 33381.6 |
| | = | 0.034777 |
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 -2.22 suggests that the company is unlikely to be a manipulator.
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