Equity Residential

This synthesis is limited by what the data contains. No forensic scores are on file, so this analysis does not report a Beneish M-Score, Piotroski F-Score, Altman Z-Score, or Fog Index. For a reader learning to use these tools, the scores work as screens. The Beneish M-Score is a statistical model that flags financial statements whose ratios resemble those of companies that later misstated results. The Piotroski F-Score counts a set of profitability, leverage, and efficiency signals. The Altman Z-Score estimates financial distress risk. The Fog Index estimates how hard a passage is to read. None of these results can be stated here, so none should be inferred from the figures below. The financial facts provided show net income of $657.53 million in 2018, $970.38 million in 2019 (a gain of about 47.6 percent), $913.64 million in 2020, $1.33 billion in 2021, $776.91 million in 2022 (a decline of roughly 41.6 percent from 2021), $835.44 million in 2023, $1.04 billion in 2024, and $1.12 billion in 2025. Operating income fell about 33 percent, from $1.68 billion in 2021 to $1.12 billion in 2022. Revenue figures run only through 2019, when they were $2.7 billion, so the most recent years cannot be checked against sales. Readers may want to look at the company's Form 10-K, especially the MD&A, risk factors, and notes to the financial statements, to see what drove the 2021 to 2022 swing and whether the recent net income gains are tied to operating results or to items below the operating line.

Catalyst.The data provided contains no MD&A text, so this section cannot report management's stated drivers. The reported financial facts do show direction. Net income rose from $835.44 million in 2023 to $1.04 billion in 2024, a gain of about 24.5 percent, and then to $1.12 billion in 2025, about 7.7 percent higher. Operating income rose modestly from $1.12 billion in 2022 to $1.16 billion in 2023, about 3.6 percent. Readers may want to look at the MD&A section of the company's annual report on Form 10-K to find management's explanation of these changes.

Hidden risk.The most visible tension in the data is the gap between operating income and net income. In 2023, operating income was $1.16 billion while net income was $835.44 million, a difference of roughly $325 million. In 2022 the gap was roughly $343 million. Net income is measured after items reported below operating income, and the data provided does not itemize those items, so their size and direction cannot be checked here. Revenue figures stop at 2019, so the recent years cannot be compared against sales. Because no risk-factor text is on file, this section cannot describe disclosed exposures.