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Essex Property Trust Beneish M-Score

: -2.68 (As of Today)
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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.

Essex Property Trust has a M-score of -2.68 suggests that the company is not a manipulator.

NYSE:ESS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.7   Max: 10.47
Current: -2.68

-3.7
10.47

During the past 13 years, the highest Beneish M-Score of Essex Property Trust was 10.47. The lowest was -3.70. And the median was -2.52.


Essex Property Trust Beneish M-Score Historical Data

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

* Premium members only.

Essex Property Trust Annual Data

Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.04 -2.44 -2.61 -2.63 -2.73

Essex Property Trust Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 -2.67 -2.67 -2.68 -2.73 -2.68

Competitive Comparison
* 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.


Essex Property Trust Beneish M-Score Distribution

* The bar in red indicates where Essex Property Trust's Beneish M-Score falls into.



Essex Property Trust 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 Essex Property Trust 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+0.528 * 1.0015+0.404 * 0.9959+0.892 * 1.0242+0.115 * 1.16
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1156+4.679 * -0.0455-0.327 * 1.024
=-2.68

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

This Year (Mar19) TTM:Last Year (Mar18) TTM:
Accounts Receivable was USD 0 Mil.
Revenue was 356.223 + 353.158 + 350.917 + 348.723 = USD 1,409 Mil.
Gross Profit was 249.754 + 246.959 + 245.381 + 246.795 = USD 989 Mil.
Total Current Assets was USD 242 Mil.
Total Assets was USD 12,578 Mil.
Property, Plant and Equipment(Net PPE) was USD 77 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 481 Mil.
Selling, General, & Admin. Expense(SGA) was USD 52 Mil.
Total Current Liabilities was USD 375 Mil.
Long-Term Debt & Capital Lease Obligation was USD 5,815 Mil.
Net Income was 118.858 + 117.82 + 80.975 + 100.44 = USD 418 Mil.
Non Operating Income was 51.16 + 67.378 + 18.941 + 39.453 = USD 177 Mil.
Cash Flow from Operations was 255.759 + 145.417 + 257.616 + 155.163 = USD 814 Mil.
Accounts Receivable was USD 0 Mil.
Revenue was 347.255 + 345.064 + 344.369 + 339.062 = USD 1,376 Mil.
Gross Profit was 244.522 + 241.437 + 240.232 + 240.797 = USD 967 Mil.
Total Current Assets was USD 270 Mil.
Total Assets was USD 12,643 Mil.
Property, Plant and Equipment(Net PPE) was USD 0 Mil.
(DDA) was USD 472 Mil.
Selling, General, & Admin. Expense(SGA) was USD 46 Mil.
Total Current Liabilities was USD 357 Mil.
Long-Term Debt & Capital Lease Obligation was USD 5,719 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(0 / 1409.021) / (0 / 1375.75)
=0 / 0
=1

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)
=(966.988 / 1375.75) / (988.889 / 1409.021)
=0.70288061 / 0.70182701
=1.0015

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 - (242.163 + 76.996) / 12578.001) / (1 - (269.65 + 0) / 12642.667)
=0.97462562 / 0.97867143
=0.9959

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
=1409.021 / 1375.75
=1.0242

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))
=(472.483 / (472.483 + 0)) / (481.347 / (481.347 + 76.996))
=1 / 0.8620991
=1.16

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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)
=(52.097 / 1409.021) / (45.597 / 1375.75)
=0.0369739 / 0.03314338
=1.1156

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)
=((5814.811 + 374.997) / 12578.001) / ((5718.97 + 356.902) / 12642.667)
=0.49211381 / 0.48058467
=1.024

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
=(418.093 - 176.932 - 813.955) / 12578.001
=-0.0455

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.

Essex Property Trust has a M-score of -2.68 suggests that the company will not be a manipulator.


Essex Property Trust Beneish M-Score Headlines

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