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Innovative Industrial Properties Beneish M-Score

: -5.02 (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.

Innovative Industrial Properties has a M-score of -5.02 suggests that the company is not a manipulator.

NYSE:IIPR' s Beneish M-Score Range Over the Past 10 Years
Min: -5.02   Max: 12.34
Current: -5.02

-5.02
12.34

During the past 3 years, the highest Beneish M-Score of Innovative Industrial Properties was 12.34. The lowest was -5.02. And the median was -2.42.


Innovative Industrial Properties 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.

Innovative Industrial Properties Annual Data
Dec16 Dec17 Dec18
Beneish M-Score 0.00 0.00 -1.45

Innovative Industrial Properties Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 12.34 -1.45 -3.39 -5.02

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.


Innovative Industrial Properties Beneish M-Score Distribution

* The bar in red indicates where Innovative Industrial Properties's Beneish M-Score falls into.



Innovative Industrial Properties 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 Innovative Industrial Properties 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 * 1.009+0.404 * 1.1049+0.892 * 2.4346+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6373+4.679 * -0.0358-0.327 * 12.4986
=-5.02

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

This Year (Jun19) TTM:Last Year (Jun18) TTM:
Accounts Receivable was $0.00 Mil.
Revenue was 8.617 + 6.823 + 4.783 + 3.926 = $24.15 Mil.
Gross Profit was 8.28 + 6.576 + 4.703 + 3.716 = $23.28 Mil.
Total Current Assets was $186.16 Mil.
Total Assets was $430.72 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.45 Mil.
Selling, General, & Admin. Expense(SGA) was $7.94 Mil.
Total Current Liabilities was $30.87 Mil.
Long-Term Debt & Capital Lease Obligation was $133.67 Mil.
Net Income was 3.412 + 3.303 + 2.666 + 1.832 = $11.21 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 8.459 + 6.158 + 6.142 + 5.857 = $26.62 Mil.
Accounts Receivable was $0.00 Mil.
Revenue was 3.314 + 2.764 + 2.282 + 1.559 = $9.92 Mil.
Gross Profit was 3.246 + 2.677 + 2.228 + 1.495 = $9.65 Mil.
Total Current Assets was $78.60 Mil.
Total Assets was $161.70 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
(DDA) was $1.59 Mil.
Selling, General, & Admin. Expense(SGA) was $5.11 Mil.
Total Current Liabilities was $4.94 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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 / 24.149) / (0 / 9.919)
=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)
=(9.646 / 9.919) / (23.275 / 24.149)
=0.97247706 / 0.96380803
=1.009

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 - (186.163 + 0) / 430.721) / (1 - (78.604 + 0) / 161.699)
=0.5677875 / 0.51388691
=1.1049

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
=24.149 / 9.919
=2.4346

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))
=(1.591 / (1.591 + 0)) / (4.45 / (4.45 + 0))
=1 / 1
=1

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)
=(7.935 / 24.149) / (5.114 / 9.919)
=0.32858503 / 0.51557617
=0.6373

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)
=((133.668 + 30.865) / 430.721) / ((0 + 4.942) / 161.699)
=0.38199438 / 0.03056296
=12.4986

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
=(11.213 - 0 - 26.616) / 430.721
=-0.0358

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.

Innovative Industrial Properties has a M-score of -5.02 suggests that the company will not be a manipulator.


Innovative Industrial Properties Beneish M-Score Headlines

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