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Taylor Morrison Home (Taylor Morrison Home) Beneish M-Score

: -2.41 (As of Today)
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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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Taylor Morrison Home's Beneish M-Score or its related term are showing as below:

TMHC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95   Med: -2.35   Max: -1.77
Current: -2.41

During the past 13 years, the highest Beneish M-Score of Taylor Morrison Home was -1.77. The lowest was -2.95. And the median was -2.35.


Taylor Morrison Home Beneish M-Score Historical Data

The historical data trend for Taylor Morrison Home'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.

Taylor Morrison Home Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.74 -2.28 -1.97 -2.21 -2.41

Taylor Morrison Home Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.21 -2.39 -2.52 -2.58 -2.41

Competitive Comparison

For the Residential Construction subindustry, Taylor Morrison Home'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.


Taylor Morrison Home Beneish M-Score Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Morrison Home's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Taylor Morrison Home's Beneish M-Score falls into.



Taylor Morrison Home 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 Taylor Morrison Home 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 * 1.0684+0.528 * 1.0583+0.404 * 1.0379+0.892 * 0.9019+0.115 * 1.042
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2045+4.679 * 0.004828-0.327 * 0.8155
=-2.41

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $185 Mil.
Revenue was 2019.865 + 1675.545 + 2060.564 + 1661.857 = $7,418 Mil.
Gross Profit was 492.104 + 391.718 + 499.685 + 399.566 = $1,783 Mil.
Total Current Assets was $7,021 Mil.
Total Assets was $8,672 Mil.
Property, Plant and Equipment(Net PPE) was $574 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General, & Admin. Expense(SGA) was $699 Mil.
Total Current Liabilities was $805 Mil.
Long-Term Debt & Capital Lease Obligation was $2,102 Mil.
Net Income was 172.585 + 170.691 + 234.602 + 191.051 = $769 Mil.
Non Operating Income was -79.202 + -1.303 + -5.363 + 6.763 = $-79 Mil.
Cash Flow from Operations was 255.608 + -56.55 + 259.662 + 347.449 = $806 Mil.
Total Receivables was $192 Mil.
Revenue was 2492.126 + 2034.644 + 1995.023 + 1703.124 = $8,225 Mil.
Gross Profit was 599.818 + 557.94 + 541.48 + 393.128 = $2,092 Mil.
Total Current Assets was $6,901 Mil.
Total Assets was $8,471 Mil.
Property, Plant and Equipment(Net PPE) was $556 Mil.
Depreciation, Depletion and Amortization(DDA) was $34 Mil.
Selling, General, & Admin. Expense(SGA) was $643 Mil.
Total Current Liabilities was $898 Mil.
Long-Term Debt & Capital Lease Obligation was $2,584 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)
=(184.518 / 7417.831) / (191.504 / 8224.917)
=0.024875 / 0.023283
=1.0684

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)
=(2092.366 / 8224.917) / (1783.073 / 7417.831)
=0.254394 / 0.240377
=1.0583

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 - (7021.333 + 573.541) / 8672.087) / (1 - (6900.771 + 556.2) / 8470.724)
=0.124216 / 0.119677
=1.0379

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
=7417.831 / 8224.917
=0.9019

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))
=(33.839 / (33.839 + 556.2)) / (33.406 / (33.406 + 573.541))
=0.05735 / 0.055039
=1.042

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)
=(698.707 / 7417.831) / (643.213 / 8224.917)
=0.094193 / 0.078203
=1.2045

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)
=((2102.101 + 805.099) / 8672.087) / ((2584.035 + 898.137) / 8470.724)
=0.335236 / 0.411083
=0.8155

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
=(768.929 - -79.105 - 806.169) / 8672.087
=0.004828

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.

Taylor Morrison Home has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.


Taylor Morrison Home Beneish M-Score Related Terms

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Taylor Morrison Home (Taylor Morrison Home) Business Description

Traded in Other Exchanges
Address
4900 N. Scottsdale Road, Suite 2000, Scottsdale, AZ, USA, 85251
Taylor Morrison Home is an American residential construction company that builds single-family homes and communities throughout California, Arizona, Texas, Illinois, Colorado, Florida, Georgia, and North Carolina. Taylor Morrison also reports via a mortgage operations segment that provides financing services for its homebuyers. It constructs various types of single-family homes, from entry-level to luxury move-up homes, as well as active adult communities. The majority of the company's revenue is derived from its construction projects, with the West and central operating regions leading the way.
Executives
William H Lyon director C/O TAYLOR MORRISON HOME CORP., 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Sheryl Palmer officer: President and CEO 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Darrell Sherman officer: EVP, CLO & Secretary 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Joseph Terracciano officer: Chief Accounting Officer 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Curtis Vanhyfte officer: Interim CFO 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Louis Steffens officer: EVP and CFO 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
David C Merritt director CHARTER COMMUNICATIONS INC, 12405 POWERSCOURT DRIVE, ST LOUIS MO 63131
Denise Warren director 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94065
C. David Cone officer: Vice President and CFO 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Christopher J. Yip director 301 COMMERCE STREET, FORT WORTH TX 76102
Gary H Hunt director C/O WILLIAM LYON HOMES, 4695 MACARTHUR COURT, 8TH FLOOR, NEWPORT BEACH CA 92660
Peter R. Lane director 1500 SOLANA BOULEVARD, BUILDING 4, SUITE 4500, SOUTHLAKE TX 76092
Jeffry L. Flake director C/O 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Andi Owen director 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Tpg Group Holdings (sbs) Advisors, Inc. 10 percent owner C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102