Swire 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 Swire 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 * 2.1426 | + | 0.528 * 0.9624 | + | 0.404 * 0.977 | + | 0.892 * 0.9421 | + | 0.115 * 0.952 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0814 | + | 4.679 * -0.0041 | - | 0.327 * 0.9263 |
| = | -1.52 |
* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.
| This Year (Dec20) TTM: | Last Year (Dec19) TTM: |
Accounts Receivable was $53 Mil.
Revenue was $1,717 Mil.
Gross Profit was $1,279 Mil.
Total Current Assets was $3,605 Mil.
Total Assets was $43,523 Mil.
Property, Plant and Equipment(Net PPE) was $983 Mil.
Depreciation, Depletion and Amortization(DDA) was $53 Mil.
Selling, General, & Admin. Expense(SGA) was $219 Mil.
Total Current Liabilities was $1,365 Mil.
Long-Term Debt & Capital Lease Obligation was $3,335 Mil.
Net Income was $528 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $706 Mil.
|
Accounts Receivable was $26 Mil.
Revenue was $1,822 Mil.
Gross Profit was $1,306 Mil.
Total Current Assets was $2,644 Mil.
Total Assets was $43,291 Mil.
Property, Plant and Equipment(Net PPE) was $1,009 Mil.
Depreciation, Depletion and Amortization(DDA) was $52 Mil.
Selling, General, & Admin. Expense(SGA) was $214 Mil.
Total Current Liabilities was $1,983 Mil.
Long-Term Debt & Capital Lease Obligation was $3,065 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) |
| = | (53.019259794373 / 1716.740412028) | / | (26.266897302838 / 1822.2820167852) |
| = | 0.03088368 | / | 0.01441429 |
| | = | 2.1426 |
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) |
| = | (1306.169517586 / 1822.2820167852) | / | (1278.6542654059 / 1716.740412028) |
| = | 0.71677682 | / | 0.74481515 |
| | = | 0.9624 |
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 - (3605.0516647532 + 983.37181852191) / 43523.136263368) | / | (1 - (2643.9874431418 + 1008.7769876353) / 43290.92190403) |
| = | 0.89457507 | / | 0.91562285 |
| | = | 0.977 |
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 |
| = | 1716.740412028 | / | 1822.2820167852 |
| | = | 0.9421 |
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)) |
| = | (51.8931385739 / (51.8931385739 + 1008.7769876353)) | / | (53.277261058579 / (53.277261058579 + 983.37181852191)) |
| = | 0.04892486 | / | 0.05139373 |
| | = | 0.952 |
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) |
| = | (218.52707078265 / 1716.740412028) | / | (214.49163943879 / 1822.2820167852) |
| = | 0.12729185 | / | 0.11770496 |
| | = | 1.0814 |
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) |
| = | ((3335.0533417614 + 1365.2136895471) / 43523.136263368) | / | ((3064.5140623999 + 1982.5741559357) / 43290.92190403) |
| = | 0.10799468 | / | 0.11658537 |
| | = | 0.9263 |
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 |
| = | (528.38658909429 - 0 | - | 705.50445697184) | / | 43523.136263368 |
| | = | -0.0041 |
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.
Swire Properties has a M-score of -1.52 signals that the company is likely to be a manipulator.
Excel Add-In GURUF
API
My Portfolios
Create New Portfolio
Portfolio Contest
My Gurus
Personalize
My Gurus
0(0%) 10:08PM EDT
Email Alerts
Stock PDF
RSS
Website
Filings
Manual of Stocks™ Web APP
OTCPK:SWPFF has been successfully added to your 
