Macerich Beneish M Score


USD 12.52  0.04  0.32%   

This module uses fundamental data of Macerich to approximate the value of its Beneish M Score. Macerich M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Macerich Piotroski F Score and Macerich Altman Z Score analysis.
The current year Total Debt is expected to grow to about 5.5 B, whereas Issuance Repayment of Debt Securities is forecasted to decline to (1.5 B). Macerich Interest Coverage is projected to increase slightly based on the last few years of reporting. The past year's Interest Coverage was at 0.65. The current year Calculated Tax Rate is expected to grow to 90.90, whereas Long Term Debt to Equity is forecasted to decline to 1.43.
At this time, it appears that Macerich is an unlikely manipulator. The earnings manipulation may begin if Macerich's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Macerich executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Macerich's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.03Focus
Asset Quality0.22Focus
Expense Coverage1.04Focus
Gross Margin Strengs0.96Focus
Accruals Factor1.04Focus
Depreciation Resistance1.04Focus
Net Sales Growth1.0Focus
Financial Leverage Condition1.08Focus

Macerich Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Macerich's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense31.2 M30.1 M
Sufficiently Up
Slightly volatile
Revenues846.4 M847.4 M
Slightly Down
Very volatile
Trade and Non Trade Receivables216.5 M211.4 M
Fairly Up
Slightly volatile
Property Plant and Equipment Net6.5 B6.4 B
Fairly Up
Operating Income181.9 M125.4 M
Way Up
Net Cash Flow from Operations346.9 M286.4 M
Fairly Up
Very volatile
Current Liabilities416.1 M313.8 M
Significantly Up
Total Liabilities5.3 B5.3 B
Slightly Up
Investments1.5 B1.3 B
Significantly Up
Slightly volatile
Gross Margin55.6157.9855
Sufficiently Down
Depreciation Amortization and Accretion318.8 M324.4 M
Fairly Down
Very volatile
Total Debt5.5 B4.7 B
Fairly Up
Slightly volatile
Current Assets340.3 M378.3 M
Moderately Down
Very volatile
Total Assets8.4 B8.3 B
Slightly Up
Very volatile

Macerich Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Macerich's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Macerich in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Macerich's degree of accounting gimmicks and manipulations.

About Macerich Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

219.56 Million

Macerich Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 265.44 Million

Macerich Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Macerich. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Trade and Non Trade Receivables194.81 M208.67 M150.19 M240.81 M211.36 M216.52 M
Revenues993.66 M960.35 M927.46 M786.03 M847.44 M846.38 M
Total Assets9.61 B9.03 B8.85 B9.18 B8.35 B8.37 B
Current Assets255.76 M272.79 M258.25 M721.85 M378.33 M340.25 M
Property Plant and Equipment Net7.11 B6.79 B6.79 B6.81 B6.39 B6.52 B
Depreciation Amortization and Accretion341.27 M334.68 M337.67 M326.06 M324.4 M318.75 M
Selling General and Administrative Expense28.24 M24.16 M22.63 M30.34 M30.06 M31.2 M
Total Liabilities5.92 B6.08 B6.22 B6.93 B5.3 B5.32 B
Current Liabilities384.11 M362.44 M316.62 M367.42 M313.83 M416.06 M
Total Debt5.17 B5.36 B5.6 B6.26 B4.73 B5.52 B
Operating Income234.68 M208.38 M206.15 M88.09 M125.37 M181.95 M
Net Cash Flow from Operations386.39 M344.31 M355.16 M124.84 M286.37 M346.92 M
Investments1.71 B1.49 B1.52 B1.34 B1.32 B1.46 B
Gross Margin60.2260.3363.5258.9357.9955.61

About Macerich Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Macerich Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Macerich using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Macerich Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Macerich is a fully integrated, self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. A recognized leader in sustainability, Macerich has achieved the 1 GRESB ranking in the North American Retail Sector for five straight years . Macerich operates under REITRetail classification in the United States and is traded on New York Stock Exchange. It employs 6 people.

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Additionally, see Macerich Piotroski F Score and Macerich Altman Z Score analysis. Note that the Macerich information on this page should be used as a complementary analysis to other Macerich's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try CEO Directory module to screen CEOs from public companies around the world.

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Is Macerich's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Macerich. If investors know Macerich will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Macerich listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Macerich is measured differently than its book value, which is the value of Macerich that is recorded on the company's balance sheet. Investors also form their own opinion of Macerich's value that differs from its market value or its book value, called intrinsic value, which is Macerich's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Macerich's market value can be influenced by many factors that don't directly affect Macerich's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Macerich's value and its price as these two are different measures arrived at by different means. Investors typically determine Macerich value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Macerich's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.