London & Associated Properties (LSE:LAS) Beneish M-Score : -2.45 (As of Jun. 01, 2024)

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What is London & Associated Properties 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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for London & Associated Properties's Beneish M-Score or its related term are showing as below:

LSE:LAS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22 Med: -2.6 Max: -2.45
Current: -2.45

During the past 13 years, the highest Beneish M-Score of London & Associated Properties was -2.45. The lowest was -3.22. And the median was -2.60.

London & Associated Properties Beneish M-Score Historical Data

The historical data trend for London & Associated Properties'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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London & Associated Properties Beneish M-Score Chart

London & Associated Properties Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.22

-2.55

-2.46

-3.19

-2.45

London & Associated Properties Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.46	-	-3.19	-	-2.45

Competitive Comparison of London & Associated Properties's Beneish M-Score

For the Real Estate Services subindustry, London & Associated Properties'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.

London & Associated Properties's Beneish M-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, London & Associated Properties's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where London & Associated Properties's Beneish M-Score falls into.

London & Associated 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 London & Associated Properties 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 * 1.7653

0.528 * 1

0.404 * 1.2571

0.892 * 0.5305

0.115 * 0.8776

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.078758

0.327 * 0.9262

-2.45

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £7.41 Mil.
Revenue was £53.18 Mil.
Gross Profit was £53.18 Mil.
Total Current Assets was £27.14 Mil.
Total Assets was £97.64 Mil.
Property, Plant and Equipment(Net PPE) was £20.75 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.76 Mil.
Selling, General, & Admin. Expense(SGA) was £0.00 Mil.
Total Current Liabilities was £32.84 Mil.
Long-Term Debt & Capital Lease Obligation was £14.87 Mil.
Net Income was £-3.86 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £3.83 Mil.

Total Receivables was £7.92 Mil.
Revenue was £100.24 Mil.
Gross Profit was £100.24 Mil.
Total Current Assets was £52.24 Mil.
Total Assets was £118.92 Mil.
Property, Plant and Equipment(Net PPE) was £18.48 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.36 Mil.
Selling, General, & Admin. Expense(SGA) was £0.00 Mil.
Total Current Liabilities was £43.79 Mil.
Long-Term Debt & Capital Lease Obligation was £18.95 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)
	=	(7.413 / 53.183)	/	(7.915 / 100.243)
	=	0.139387	/	0.078958
	=	1.7653

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)
	=	(100.243 / 100.243)	/	(53.183 / 53.183)
	=	1	/	1
	=	1

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 - (27.138 + 20.753) / 97.641)	/	(1 - (52.244 + 18.48) / 118.924)
	=	0.50952	/	0.405301
	=	1.2571

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
	=	53.183	/	100.243
	=	0.5305

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))
	=	(1.362 / (1.362 + 18.48))	/	(1.761 / (1.761 + 20.753))
	=	0.068642	/	0.078218
	=	0.8776

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)
	=	(0 / 53.183)	/	(0 / 100.243)
	=	0	/	0
	=	1

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)
	=	((14.873 + 32.84) / 97.641)	/	((18.952 + 43.789) / 118.924)
	=	0.488657	/	0.527572
	=	0.9262

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
	=	(-3.861 - 0	-	3.829)	/	97.641
	=	-0.078758

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.

London & Associated Properties has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.

London & Associated Properties Beneish M-Score Related Terms

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London & Associated Properties (LSE:LAS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » London & Associated Properties PLC (LSE:LAS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

12 Little Portland Street, 2nd Floor, London, GBR, W1W 8BJ

Website

https://www.lap.co.uk

London & Associated Properties PLC is a property investment company specializing in retail. It directly owns a portfolio of shopping centres and other retail property. The company also invests in joint ventures with institutional co-owners. Its business segments include LAP operations, Bisichi operations, and Dragon operations. LAP is focused on property activities but it also holds and manages investments. Bisichi is a coal mining company with operations in South Africa and also holds investment property in the UK and derives income from property rentals. Dragon Retail Property segment is a property investment company and derives its income from property rentals. All the operations function through UK region.

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