Independence Realty Trust Stock Beneish M Score

IRT Stock  USD 21.84  0.17  0.77%   
This module uses fundamental data of Independence Realty to approximate the value of its Beneish M Score. Independence 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. Check out Independence Realty Piotroski F Score and Independence Realty Altman Z Score analysis.
  
At this time, Independence Realty's Net Debt is comparatively stable compared to the past year. Long Term Debt Total is likely to gain to about 3.2 B in 2024, whereas Short Term Debt is likely to drop slightly above 63.5 M in 2024. At this time, Independence Realty's Days Payables Outstanding is comparatively stable compared to the past year. Receivables Turnover is likely to gain to 27.84 in 2024, whereas Days Sales Outstanding is likely to drop 18.77 in 2024.
At this time, it appears that Independence Realty Trust is an unlikely manipulator. The earnings manipulation may begin if Independence 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 Independence 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 Independence 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.
-2.56
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.87

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.99

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Independence 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 Independence 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
Net Receivables4.1 M4.5 M
Significantly Down
Slightly volatile
Total Revenue694 M661 M
Sufficiently Up
Slightly volatile
Total Assets6.6 B6.3 B
Sufficiently Up
Slightly volatile
Total Current Assets364.4 M347.1 M
Sufficiently Up
Slightly volatile
Non Current Assets Total62.7 K66 K
Notably Down
Slightly volatile
Depreciation And Amortization114 M219 M
Way Down
Slightly volatile
Selling General Administrative23.9 M22.8 M
Sufficiently Up
Slightly volatile
Total Current LiabilitiesB993.3 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total971.7 M1.7 B
Way Down
Slightly volatile
Short Term Debt63.5 M66.8 M
Notably Down
Slightly volatile
Long Term Debt1.1 B1.7 B
Way Down
Slightly volatile
Operating Income151.8 M144.6 M
Sufficiently Up
Slightly volatile
Short Term Investments31.4 M29.9 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.240.2532
Notably Down
Slightly volatile

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

About Independence 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.

Other Operating Expenses

542.2 Million

At this time, Independence Realty's Other Operating Expenses is comparatively stable compared to the past year.

Independence 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 Independence 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.
201920202021202220232024 (projected)
Total Revenue203.2M211.9M250.3M628.5M661.0M694.0M
Total Assets1.7B1.7B6.5B6.5B6.3B6.6B
Total Current Assets14.4M13.6M127.2M79.8M347.1M364.4M
Net Debt975.7M936.9M2.7B4.6B2.4B2.5B
Short Term Debt482.4M481.9M9.0M2.0B66.8M63.5M
Long Term Debt993.3M975.5M2.1B2.6B1.7B1.1B
Operating Income50.4M44.5M51.9M92.5M144.6M151.8M
Investments(106.4M)(124.5M)(25.0M)(57.4M)(104.2M)(109.4M)

Independence Realty 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, Independence Realty's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Independence Realty's managers, analysts, and investors.
Environmental
Governance
Social

About Independence Realty Fundamental Analysis

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

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Additional Tools for Independence Stock Analysis

When running Independence Realty's price analysis, check to measure Independence Realty'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 Independence Realty is operating at the current time. Most of Independence Realty's value examination focuses on studying past and present price action to predict the probability of Independence Realty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Independence Realty's price. Additionally, you may evaluate how the addition of Independence Realty to your portfolios can decrease your overall portfolio volatility.