GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Office Properties Income Trust (NAS:OPI) » Definitions » Beneish M-Score

OPI (Office Propertiesome Trust) Beneish M-Score : -2.47 (As of Dec. 12, 2024)


View and export this data going back to 2009. Start your Free Trial

What is Office Propertiesome Trust Beneish M-Score?

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.

Good Sign:

Beneish M-Score -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OPI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9   Med: -2.51   Max: -2.13
Current: -2.47

During the past 13 years, the highest Beneish M-Score of Office Propertiesome Trust was -2.13. The lowest was -2.90. And the median was -2.51.


Office Propertiesome Trust Beneish M-Score Historical Data

The historical data trend for Office Propertiesome Trust'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.

Office Propertiesome Trust Beneish M-Score Chart

Office Propertiesome Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.39 -2.50 -2.64 -2.76 -2.44

Office Propertiesome Trust Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial 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 -2.53 -2.44 -2.38 -2.42 -2.47

Competitive Comparison of Office Propertiesome Trust's Beneish M-Score

For the REIT - Office subindustry, Office Propertiesome Trust'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.


Office Propertiesome Trust's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Office Propertiesome Trust's Beneish M-Score distribution charts can be found below:

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



Office Propertiesome 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 Office Propertiesome 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 * 1.2049+0.528 * 1.0266+0.404 * 0.96+0.892 * 0.9807+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9297+4.679 * -0.039297-0.327 * 0.9696
=-2.47

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $146.6 Mil.
Revenue was 120.62 + 123.686 + 139.435 + 133.773 = $517.5 Mil.
Gross Profit was 103.693 + 108.959 + 123.726 + 116.433 = $452.8 Mil.
Total Current Assets was $308.6 Mil.
Total Assets was $3,726.0 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $189.9 Mil.
Selling, General, & Admin. Expense(SGA) was $21.2 Mil.
Total Current Liabilities was $115.2 Mil.
Long-Term Debt & Capital Lease Obligation was $2,332.1 Mil.
Net Income was -58.414 + 76.171 + -5.184 + -37.151 = $-24.6 Mil.
Non Operating Income was -33.865 + 94.002 + -3.042 + -9.288 = $47.8 Mil.
Cash Flow from Operations was -17.057 + 31.867 + 26.632 + 32.593 = $74.0 Mil.
Total Receivables was $124.0 Mil.
Revenue was 133.361 + 133.997 + 132.422 + 127.922 = $527.7 Mil.
Gross Profit was 119.104 + 118.096 + 117.089 + 119.72 = $474.0 Mil.
Total Current Assets was $180.6 Mil.
Total Assets was $4,045.0 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $199.0 Mil.
Selling, General, & Admin. Expense(SGA) was $23.2 Mil.
Total Current Liabilities was $362.2 Mil.
Long-Term Debt & Capital Lease Obligation was $2,378.2 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)
=(146.58 / 517.514) / (124.043 / 527.702)
=0.283239 / 0.235063
=1.2049

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)
=(474.009 / 527.702) / (452.811 / 517.514)
=0.898251 / 0.874973
=1.0266

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 - (308.63 + 0) / 3725.951) / (1 - (180.613 + 0) / 4044.99)
=0.917167 / 0.955349
=0.96

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
=517.514 / 527.702
=0.9807

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))
=(199.004 / (199.004 + 0)) / (189.94 / (189.94 + 0))
=1 / 1
=1

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)
=(21.162 / 517.514) / (23.211 / 527.702)
=0.040892 / 0.043985
=0.9297

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)
=((2332.117 + 115.248) / 3725.951) / ((2378.184 + 362.173) / 4044.99)
=0.656843 / 0.677469
=0.9696

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
=(-24.578 - 47.807 - 74.035) / 3725.951
=-0.039297

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.

Office Propertiesome Trust has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.


Office Propertiesome Trust Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Office Propertiesome Trust's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Office Propertiesome Trust Business Description

Traded in Other Exchanges
Address
255 Washington Street, Two Newton Place, Suite 300, Newton, MA, USA, 02458-1634
Office Properties Income Trust is a United States-based real estate investment trust. Its property portfolio is mainly composed of single-tenant office buildings, as well as multitenant properties, which are leased to parties of high credit quality characteristics. Its largest tenant is the U.S. government, followed by other smaller government entities and corporations. The company's properties are spread across the United States. The company has only one segment which is direct ownership of real estate properties.
Executives
Brian E. Donley officer: CFO and Treasurer C/O THE RMR GROUP LLC,, TWO NEWTON PL., 255 WASHINGTON ST., NEWTON MA 02458
Mark A. Talley director C/O THE RMR GROUP LLC, TWO NEWTON PALCE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Jennifer B Clark director
Christopher J. Bilotto officer: Vice President C/O THE RMR GROUP LLC, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Matthew C. Brown officer: CFO and Treasurer C/O OFFICE PROPERTIES INCOME TRUST, TWO NEWTON PLACE, 255 WASHINGTON STREET, NEWTON MA 02458
Donna D. Fraiche director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
William A. Lamkin director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Jeffrey C. Leer officer: CFO and Treasurer C/O FIVE STAR SENIOR LIVING INC., 400 CENTRE STREET, NEWTON MA 02458
Elena Poptodorova director TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Reit Commonwealth 10 percent owner TWO NORTH RIVERSIDE PLAZA, SUITE 2000, CHICAGO IL 60606
Mark Lawrence Kleifges officer: Treasurer and CFO C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
David M Blackman officer: Treasurer and CFO C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Barry M. Portnoy director, 10 percent owner C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
John L Harrington director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Adam D. Portnoy director, 10 percent owner, officer: President C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458