Brookdale Senior Living Stock Beneish M Score

BKDT Stock   68.95  0.63  0.91%   
This module uses fundamental data of Brookdale Senior to approximate the value of its Beneish M Score. Brookdale Senior 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. Check out Brookdale Senior Piotroski F Score and Brookdale Senior Altman Z Score analysis.
  
At this time, Brookdale Senior's Net Debt To EBITDA is comparatively stable compared to the past year. Debt To Equity is likely to gain to 11.06 in 2025, whereas Short Term Debt is likely to drop slightly above 265.2 M in 2025. At this time, Brookdale Senior's Net Debt To EBITDA is comparatively stable compared to the past year.
At this time, it appears that Brookdale Senior Living is a possible manipulator. The earnings manipulation may begin if Brookdale Senior'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 Brookdale Senior 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 Brookdale Senior'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.
-1.84
Beneish M Score - Possible Manipulator
Elasticity of Receivables

2.12

Focus
Asset Quality

0.67

Focus
Expense Coverage

1.18

Focus
Gross Margin Strengs

1.14

Focus
Accruals Factor

1.18

Focus
Depreciation Resistance

0.58

Focus
Net Sales Growth

0.81

Focus
Financial Leverage Condition

0.79

Focus

Brookdale Senior 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 Brookdale Senior'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
Net Receivables95.1 M55.7 M
Way Up
Pretty Stable
Total Revenue2.8 B3.5 B
Significantly Down
Pretty Stable
Total Assets5.7 B6.4 B
Fairly Down
Pretty Stable
Total Current Assets449.1 M550.1 M
Significantly Down
Slightly volatile
Non Current Assets Total5.6 B5.9 B
Sufficiently Down
Pretty Stable
Property Plant Equipment4.6 B4.6 B
Fairly Down
Slightly volatile
Depreciation And Amortization716.1 M394.1 M
Way Up
Slightly volatile
Selling General Administrative191.2 M201.3 M
Notably Down
Slightly volatile
Total Current Liabilities738.6 M690.1 M
Notably Up
Very volatile
Non Current Liabilities Total4.2 B5.3 B
Significantly Down
Slightly volatile
Short Term Debt265.2 M270.4 M
Fairly Down
Slightly volatile
Long Term DebtB4.2 B
Sufficiently Down
Slightly volatile
Short Term Investments25.4 M26.8 M
Notably Down
Slightly volatile
Long Term Investments2.1 M2.2 M
Notably Down
Very volatile
Gross Profit Margin0.320.28
Fairly Up
Slightly volatile

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

About Brookdale Senior 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.

Depreciation And Amortization

716.14 Million

At this time, Brookdale Senior's Depreciation And Amortization is comparatively stable compared to the past year.

Brookdale Senior 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 Brookdale Senior. 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.
202020212022202320242025 (projected)
Net Receivables109.2M51.1M55.8M48.4M55.7M95.1M
Total Revenue3.4B2.7B2.7B3.0B3.5B2.8B
Total Assets6.9B6.4B5.9B5.6B6.4B5.7B
Total Current Assets773.6M699.0M637.1M478.4M550.1M449.1M
Net Debt4.8B4.9B4.5B4.4B5.1B3.3B
Short Term Debt400.4M404.7M467.7M235.2M270.4M265.2M
Long Term Debt3.8B3.8B3.8B3.7B4.2B4.0B
Operating Income9.2M(185.7M)(85.1M)18.4M16.6M17.4M
Investments(425.1M)181.5M(67.4M)(145.7M)(167.5M)(175.9M)
Gross Profit Margin0.20.180.190.250.280.32

Brookdale Senior ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Brookdale Senior's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Brookdale Senior's managers, analysts, and investors.
Environmental
Governance
Social

About Brookdale Senior Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Brookdale Senior Living's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Brookdale Senior using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Brookdale Senior Living 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.

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Additional Tools for Brookdale Stock Analysis

When running Brookdale Senior's price analysis, check to measure Brookdale Senior's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brookdale Senior is operating at the current time. Most of Brookdale Senior's value examination focuses on studying past and present price action to predict the probability of Brookdale Senior's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brookdale Senior's price. Additionally, you may evaluate how the addition of Brookdale Senior to your portfolios can decrease your overall portfolio volatility.