Melcor Real Estate Investment Trust (TSX:MR.UN) Beneish M-Score : -3.00 (As of Dec. 15, 2024)

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What is Melcor Real Estate Investment 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 -3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Melcor Real Estate Investment Trust's Beneish M-Score or its related term are showing as below:

TSX:MR.UN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.45 Max: -0.92
Current: -3

During the past 12 years, the highest Beneish M-Score of Melcor Real Estate Investment Trust was -0.92. The lowest was -3.07. And the median was -2.45.

Melcor Real Estate Investment Trust Beneish M-Score Historical Data

The historical data trend for Melcor Real Estate Investment 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.

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Melcor Real Estate Investment Trust Beneish M-Score Chart

Melcor Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.63

-2.42

-2.79

-2.41

-2.45

Melcor Real Estate Investment 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															-2.43	-2.45	-2.61	-2.71	-3.00

Competitive Comparison of Melcor Real Estate Investment Trust's Beneish M-Score

For the REIT - Diversified subindustry, Melcor Real Estate Investment 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.

Melcor Real Estate Investment Trust's Beneish M-Score Distribution in the REITs Industry

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

* The bar in red indicates where Melcor Real Estate Investment Trust's Beneish M-Score falls into.

Melcor Real Estate Investment 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 Melcor Real Estate Investment Trust for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.598

0.528 * 1.0085

0.404 * 0.9576

0.892 * 0.9801

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3852

4.679 * -0.006064

0.327 * 1.0782

-3.00

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was C$1.06 Mil.
Revenue was 17.454 + 17.858 + 18.905 + 18.502 = C$72.72 Mil.
Gross Profit was 10.082 + 10.407 + 10.571 + 10.486 = C$41.55 Mil.
Total Current Assets was C$65.41 Mil.
Total Assets was C$673.19 Mil.
Property, Plant and Equipment(Net PPE) was C$0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.00 Mil.
Selling, General, & Admin. Expense(SGA) was C$4.44 Mil.
Total Current Liabilities was C$263.77 Mil.
Long-Term Debt & Capital Lease Obligation was C$231.86 Mil.
Net Income was -44.798 + 10.514 + 10.352 + -1.616 = C$-25.55 Mil.
Non Operating Income was -48.057 + 5.988 + 6.56 + -4.379 = C$-39.89 Mil.
Cash Flow from Operations was 7.744 + 2.633 + 4.848 + 3.197 = C$18.42 Mil.

Total Receivables was C$1.81 Mil.
Revenue was 18.285 + 18.123 + 18.99 + 18.797 = C$74.20 Mil.
Gross Profit was 10.914 + 10.613 + 10.638 + 10.583 = C$42.75 Mil.
Total Current Assets was C$40.60 Mil.
Total Assets was C$709.49 Mil.
Property, Plant and Equipment(Net PPE) was C$0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.00 Mil.
Selling, General, & Admin. Expense(SGA) was C$3.27 Mil.
Total Current Liabilities was C$77.58 Mil.
Long-Term Debt & Capital Lease Obligation was C$406.91 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)
	=	(1.058 / 72.719)	/	(1.805 / 74.195)
	=	0.014549	/	0.024328
	=	0.598

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)
	=	(42.748 / 74.195)	/	(41.546 / 72.719)
	=	0.576157	/	0.571322
	=	1.0085

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 - (65.414 + 0) / 673.186)	/	(1 - (40.604 + 0) / 709.494)
	=	0.902829	/	0.94277
	=	0.9576

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
	=	72.719	/	74.195
	=	0.9801

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))
	=	(0 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=	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)
	=	(4.441 / 72.719)	/	(3.271 / 74.195)
	=	0.061071	/	0.044087
	=	1.3852

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)
	=	((231.857 + 263.774) / 673.186)	/	((406.914 + 77.575) / 709.494)
	=	0.736247	/	0.682866
	=	1.0782

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
	=	(-25.548 - -39.888	-	18.422)	/	673.186
	=	-0.006064

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.

Melcor Real Estate Investment Trust has a M-score of -3.00 suggests that the company is unlikely to be a manipulator.

Melcor Real Estate Investment Trust Beneish M-Score Related Terms

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Melcor Real Estate Investment Trust Business Description

Industry

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Address

10310 Jasper Avenue, Suite 900, Edmonton, AB, CAN, T5J 1Y8

Website

https://www.melcorreit.ca

Melcor Real Estate Investment Trust is an open-ended real estate investment trust. The company is engaged in acquiring, owning, and managing offices, retail and industrial properties in select target markets in Western Canada. Its objective is to provide stable and growing monthly cash distributions to unitholders by acquiring high-quality properties and diversifying its portfolio.

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