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The Howard Hughes Beneish M-Score

: -1.66 (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 -1.66 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for The Howard Hughes's Beneish M-Score or its related term are showing as below:

HHC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06   Med: -2.46   Max: 30.85
Current: -1.66

During the past 13 years, the highest Beneish M-Score of The Howard Hughes was 30.85. The lowest was -3.06. And the median was -2.46.


The Howard Hughes Beneish M-Score Historical Data

The historical data trend for The Howard Hughes'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.

The Howard Hughes Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.51 -2.94 -2.26 -1.94 -1.72

The Howard Hughes 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 -2.48 -2.44 -1.72 -1.63 -1.66

Competitive Comparison

For the Real Estate - Diversified subindustry, The Howard Hughes'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.

   

The Howard Hughes Beneish M-Score Distribution

For the Real Estate industry and Real Estate sector, The Howard Hughes's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where The Howard Hughes's Beneish M-Score falls into.



The Howard Hughes 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 The Howard Hughes 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 * 0.6438+0.528 * 0.9987+0.404 * 1.0309+0.892 * 1.9604+0.115 * 0.9742
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4598+4.679 * 0.0452-0.327 * 1.0629
=-1.66

* 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 $628 Mil.
Revenue was 276.708 + 210.226 + 805.676 + 219.188 = $1,512 Mil.
Gross Profit was 126.766 + 90.623 + 280.833 + 86.787 = $585 Mil.
Total Current Assets was $1,647 Mil.
Total Assets was $9,508 Mil.
Property, Plant and Equipment(Net PPE) was $47 Mil.
Depreciation, Depletion and Amortization(DDA) was $204 Mil.
Selling, General, & Admin. Expense(SGA) was $81 Mil.
Total Current Liabilities was $899 Mil.
Long-Term Debt & Capital Lease Obligation was $4,851 Mil.
Net Income was 21.564 + 2.122 + 113.8 + 4.053 = $142 Mil.
Non Operating Income was -2.437 + 17.621 + -33.533 + 29.716 = $11 Mil.
Cash Flow from Operations was 5.533 + -100.76 + -243.558 + 39.535 = $-299 Mil.
Total Receivables was $498 Mil.
Revenue was 212.457 + 190.58 + 213.701 + 154.44 = $771 Mil.
Gross Profit was 89.205 + 47.372 + 99.62 + 61.822 = $298 Mil.
Total Current Assets was $1,833 Mil.
Total Assets was $9,309 Mil.
Property, Plant and Equipment(Net PPE) was $55 Mil.
Depreciation, Depletion and Amortization(DDA) was $208 Mil.
Selling, General, & Admin. Expense(SGA) was $90 Mil.
Total Current Liabilities was $779 Mil.
Long-Term Debt & Capital Lease Obligation was $4,517 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)
=(628.36 / 1511.798) / (497.891 / 771.178)
=0.41563754 / 0.64562397
=0.6438

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)
=(298.019 / 771.178) / (585.009 / 1511.798)
=0.38644645 / 0.38696241
=0.9987

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 - (1647.438 + 46.83) / 9508.08) / (1 - (1833.39 + 54.566) / 9309.069)
=0.82180756 / 0.79719175
=1.0309

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
=1511.798 / 771.178
=1.9604

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))
=(207.974 / (207.974 + 54.566)) / (203.774 / (203.774 + 46.83))
=0.79216119 / 0.81313147
=0.9742

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)
=(81.293 / 1511.798) / (90.188 / 771.178)
=0.0537724 / 0.11694836
=0.4598

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)
=((4850.891 + 899.075) / 9508.08) / ((4517.436 + 779.273) / 9309.069)
=0.60474523 / 0.56898375
=1.0629

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
=(141.539 - 11.367 - -299.25) / 9508.08
=0.0452

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.

The Howard Hughes has a M-score of -1.66 signals that the company is likely to be a manipulator.


The Howard Hughes Beneish M-Score Related Terms

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The Howard Hughes Business Description

The Howard Hughes logo
Traded in Other Exchanges
Address
9950 Woodloch Forest Drive, Suite 1100, 11th Floor, The Woodlands, TX, USA, 77380
The Howard Hughes Corp is a real estate company that develops master-planned communities (MPCs) and is involved in other strategic real estate development opportunities across the United States. The company operates in four segments: Operating Assets, MPCs, Seaport, and Strategic Developments. Operating Assets manages real estate that generates recurring cash flows; MPC develops residential land and sells improved acreage to homebuilders; Seaport encompasses renovated buildings, including restaurants, outdoor bars, and event venues; and Strategic Developments is involved in seeking, planning, and investing in real estate opportunities and development rights. Among those segments, Operating Assets and MPC are the company's most profitable divisions.
Executives
Olea Carlos A. officer: CHIEF FINANCIAL OFFICER 9950 WOODLOCH FOREST DRIVE SUITE 1100 THE WOODLANDS TX 77381
O'reilly David R. director, officer: Director and CEO 390 N. ORANGE AVENUE STE. 2400 ORLANDO FL 32801
Striph David Michael officer: EVP, Head of Operations ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Fitchitt Greg officer: President, Columbia ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Orrock Kevin officer: President, Summerlin ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Johnstone Douglas officer: Regional President, Hawaii ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FOOR DALLAS TX 75240
Carman James officer: President, Houston Region ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FOOR DALLAS TX 75240
Melton Heath officer: PRESIDENT, PHOENIX REGION 9950 WOODLOCH FOREST DRIVE SUITE 1100 THE WOODLANDS TX 77381
Loeffler Correne S officer: Chief Financial Officer 1401 ENCLAVE PARKWAY SUITE 600 HOUSTON TX 77077
Williams Anthony director 9950 WOODLOCH FOREST DRIVE, SUITE 1100 THE WOODLANDS TX 77380
Cross L Jay officer: President 233 SOUTH WACKER DRIVE SUITE 4600 CHICAGO IL 60606
Tighe Mary Ann director 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Kaplan Beth J director 1716 LOCUST STREET DES MOINES IA 50309
Slosser Michael officer: EVP - Hospitality ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Treacy Simon Joseph officer: President, Hawaii ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240

The Howard Hughes Headlines

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