NVR Beneish M-Score Historical Data
The historical data trend for NVR'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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NVR Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.22 |
-2.69 |
-2.48 |
-2.40 |
-1.90 |
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NVR Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.40 |
-2.52 |
-2.58 |
-2.44 |
-1.90 |
Competitive Comparison
For the Residential Construction subindustry, NVR'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.
NVR Beneish M-Score Distribution
For the Homebuilding & Construction industry and Consumer Cyclical sector, NVR's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where NVR's Beneish M-Score falls into.
NVR 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 NVR 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 * 1.5374 | + | 0.528 * 1.0477 | + | 0.404 * 1.1641 | + | 0.892 * 0.9048 | + | 0.115 * 1.1154 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.202 | + | 4.679 * 0.013507 | - | 0.327 * 0.8905 |
| = | -1.90 |
* 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 $29 Mil.
Revenue was 2437.349 + 2574.092 + 2342.153 + 2181.295 = $9,535 Mil.
Gross Profit was 624.381 + 671.918 + 614.007 + 573.385 = $2,484 Mil.
Total Current Assets was $5,994 Mil.
Total Assets was $6,602 Mil.
Property, Plant and Equipment(Net PPE) was $100 Mil.
Depreciation, Depletion and Amortization(DDA) was $17 Mil.
Selling, General, & Admin. Expense(SGA) was $680 Mil.
Total Current Liabilities was $1,223 Mil.
Long-Term Debt & Capital Lease Obligation was $1,014 Mil.
Net Income was 410.075 + 433.157 + 404.027 + 344.352 = $1,592 Mil.
Non Operating Income was 1.189 + 1.169 + 1.102 + 0.989 = $4 Mil.
Cash Flow from Operations was 495.706 + 658.083 + 28.682 + 315.522 = $1,498 Mil.
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Total Receivables was $21 Mil.
Revenue was 2715.752 + 2780.337 + 2661.715 + 2380.483 = $10,538 Mil.
Gross Profit was 722.03 + 687.88 + 736.988 + 729.118 = $2,876 Mil.
Total Current Assets was $5,196 Mil.
Total Assets was $5,661 Mil.
Property, Plant and Equipment(Net PPE) was $91 Mil.
Depreciation, Depletion and Amortization(DDA) was $17 Mil.
Selling, General, & Admin. Expense(SGA) was $625 Mil.
Total Current Liabilities was $1,146 Mil.
Long-Term Debt & Capital Lease Obligation was $1,008 Mil.
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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) |
| = | (29 / 9534.889) | / | (20.842 / 10538.287) |
| = | 0.003041 | / | 0.001978 |
| | = | 1.5374 |
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) |
| = | (2876.016 / 10538.287) | / | (2483.691 / 9534.889) |
| = | 0.272911 | / | 0.260485 |
| | = | 1.0477 |
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 - (5993.705 + 100.273) / 6601.757) | / | (1 - (5196.271 + 90.651) / 5660.973) |
| = | 0.076916 | / | 0.066075 |
| | = | 1.1641 |
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 |
| = | 9534.889 | / | 10538.287 |
| | = | 0.9048 |
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)) |
| = | (17.396 / (17.396 + 90.651)) | / | (16.916 / (16.916 + 100.273)) |
| = | 0.161004 | / | 0.144348 |
| | = | 1.1154 |
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) |
| = | (680.037 / 9534.889) | / | (625.299 / 10538.287) |
| = | 0.071321 | / | 0.059336 |
| | = | 1.202 |
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) |
| = | ((1014.299 + 1222.733) / 6601.757) | / | ((1007.674 + 1146.45) / 5660.973) |
| = | 0.338854 | / | 0.380522 |
| | = | 0.8905 |
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 |
| = | (1591.611 - 4.449 | - | 1497.993) | / | 6601.757 |
| | = | 0.013507 |
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.
NVR has a M-score of -1.90 suggests that the company is unlikely to be a manipulator.
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