Vornado Beneish M Score

VNO
 Stock
  

USD 22.01  0.89  3.89%   

This module uses fundamental data of Vornado Realty to approximate the value of its Beneish M Score. Vornado Realty 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. Also, please take a look at Vornado Realty Piotroski F Score and Vornado Realty Altman Z Score analysis.
  
Vornado Realty Long Term Debt to Equity is quite stable at the moment as compared to the past year. The company's current value of Long Term Debt to Equity is estimated at 1.66. Debt to Equity Ratio is expected to rise to 1.66 this year, although the value of Total Debt will most likely fall to about 8.7 B. Vornado Realty Return on Investment is quite stable at the moment as compared to the past year. The company's current value of Return on Investment is estimated at 1.58. Cash Flow Per Share is expected to rise to 4.56 this year, although the value of Calculated Tax Rate will most likely fall to (19.42) .
At this time, it appears that Vornado Realty Trust is a possible manipulator. The earnings manipulation may begin if Vornado Realty'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 Vornado Realty 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 Vornado Realty'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.
52.68
Beneish M Score - Possible Manipulator
Elasticity of Receivables0.63Focus
Asset Quality137.47Focus
Expense Coverage0.7Focus
Gross Margin Strengs1.18Focus
Accruals Factor0.7Focus
Depreciation Resistance1.03Focus
Net Sales Growth1.38Focus
Financial Leverage Condition0.91Focus

Vornado Realty 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 Vornado Realty'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 Expense156.5 M161.4 M
Sufficiently Down
Increasing
Stable
Revenues2.2 B1.6 B
Significantly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables882.3 MB
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net12.1 B13.3 B
Moderately Down
Increasing
Slightly volatile
Operating Income227.2 M221.3 M
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations867 M761.8 M
Fairly Up
Decreasing
Stable
Current Liabilities529.8 M613.5 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities13.4 B11 B
Fairly Up
Decreasing
Slightly volatile
Investments1.8 B1.9 B
Sufficiently Down
Decreasing
Slightly volatile
Gross Margin58.849.8295
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion472.7 M535.7 M
Fairly Down
Increasing
Slightly volatile
Total Debt8.7 B9.6 B
Significantly Down
Increasing
Slightly volatile
Current Assets1.8 BB
Fairly Down
Increasing
Stable
Total Assets20.3 B17.3 B
Fairly Up
Decreasing
Slightly volatile

Vornado Realty Trust 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 Vornado Realty's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Vornado Realty in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Vornado Realty's degree of accounting gimmicks and manipulations.

About Vornado Realty 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

699.06 Million

Vornado Realty Operating Expenses is quite stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 699.06 Million

Vornado Realty 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 Vornado Realty. 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)
Revenues2.08 B2.16 B1.92 B1.53 B1.59 B2.19 B
Total Assets17.4 B17.18 B18.29 B16.22 B17.27 B20.31 B
Current Assets2.16 B942.42 M1.74 B1.81 B2.01 B1.79 B
Total Liabilities13.06 B12.72 B11.55 B9.69 B11.03 B13.39 B
Current Liabilities415.79 M430.98 M838.34 M427.2 M613.5 M529.81 M
Operating Income607.37 M582.96 M299.55 M(22.79 M)221.34 M227.17 M
Net Cash Flow from Operations860.14 M802.64 M662.54 M424.24 M761.81 M866.95 M
Gross Margin57.4655.4752.3148.3649.8358.8

About Vornado Realty Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Vornado Realty Trust's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Vornado Realty using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Vornado Realty Trust 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.
Vornados portfolio is concentrated in the nations key market New York City along with the premier asset in both Chicago and San Francisco. The company owns and manages over 23 million square feet of LEED certified buildings and received the Energy Star Partner of the Year Award, Sustained Excellence 2019. Vornado Realty operates under REITOffice classification in the United States and is traded on New York Stock Exchange. It employs 3224 people.

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Also, please take a look at Vornado Realty Piotroski F Score and Vornado Realty Altman Z Score analysis. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

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Is Vornado Realty'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 Vornado Realty. If investors know Vornado 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 Vornado Realty 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 Vornado Realty Trust is measured differently than its book value, which is the value of Vornado that is recorded on the company's balance sheet. Investors also form their own opinion of Vornado Realty's value that differs from its market value or its book value, called intrinsic value, which is Vornado Realty'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 Vornado Realty's market value can be influenced by many factors that don't directly affect Vornado Realty'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 Vornado Realty's value and its price as these two are different measures arrived at by different means. Investors typically determine Vornado Realty value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vornado Realty'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.