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Acadia Healthcare Co Inc (NAS:ACHC)
Beneish M-Score
-2.02 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Acadia Healthcare Co Inc has a M-score of -2.02 signals that the company is a manipulator.

ACHC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.36   Max: -1.79
Current: -2.02

-2.36
-1.79

During the past 6 years, the highest Beneish M-Score of Acadia Healthcare Co Inc was -1.79. The lowest was -2.36. And the median was -2.01.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Acadia Healthcare Co Inc 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 * 0.915+0.528 * 0.9326+0.404 * 0.7752+0.892 * 1.7499+0.115 * 1.3835
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0913+4.679 * -0.0117-0.327 * 0.9407
=-2.02

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $277 Mil.
Revenue was 616.813 + 495.319 + 479.73 + 453.66 = $2,046 Mil.
Gross Profit was 249.1 + 206.937 + 199.686 + 189.816 = $846 Mil.
Total Current Assets was $393 Mil.
Total Assets was $6,696 Mil.
Property, Plant and Equipment(Net PPE) was $3,338 Mil.
Depreciation, Depletion and Amortization(DDA) was $78 Mil.
Selling, General & Admin. Expense(SGA) was $187 Mil.
Total Current Liabilities was $409 Mil.
Long-Term Debt was $3,498 Mil.
Net Income was 25.688 + 34.566 + 29.55 + 33.844 = $124 Mil.
Non Operating Income was 0.41 + -37.41 + -10.997 + -30.99 = $-79 Mil.
Cash Flow from Operations was 58.664 + 98.318 + 50.944 + 72.919 = $281 Mil.
Accounts Receivable was $173 Mil.
Revenue was 365.783 + 294.901 + 294.479 + 213.803 = $1,169 Mil.
Gross Profit was 143.658 + 114.469 + 111.785 + 80.734 = $451 Mil.
Total Current Assets was $325 Mil.
Total Assets was $3,627 Mil.
Property, Plant and Equipment(Net PPE) was $1,230 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General & Admin. Expense(SGA) was $98 Mil.
Total Current Liabilities was $231 Mil.
Long-Term Debt was $2,019 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(276.88 / 2045.522) / (172.938 / 1168.966)
=0.13535909 / 0.147941
=0.915

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)
=(450.646 / 1168.966) / (845.539 / 2045.522)
=0.38550822 / 0.41336099
=0.9326

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (393.265 + 3337.765) / 6696.359) / (1 - (325.378 + 1229.677) / 3627.145)
=0.44282706 / 0.571273
=0.7752

4. SGI = Sales Growth Index

Ratio of sales 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
=2045.522 / 1168.966
=1.7499

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(40.335 / (40.335 + 1229.677)) / (78.421 / (78.421 + 3337.765))
=0.03175954 / 0.02295572
=1.3835

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(187.4 / 2045.522) / (98.131 / 1168.966)
=0.09161476 / 0.08394684
=1.0913

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3497.569 + 408.81) / 6696.359) / ((2018.681 + 230.66) / 3627.145)
=0.58335866 / 0.62014091
=0.9407

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
=(123.648 - -78.987 - 280.845) / 6696.359
=-0.0117

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Acadia Healthcare Co Inc has a M-score of -2.02 signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Acadia Healthcare Co Inc Annual Data

Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.85740.87671.0245
GMI 0.96950.99070.919
AQI 0.94080.67511.3596
SGI 1.75091.40821.7863
DEPI 0.73841.48940.8266
SGAI 2.2040.41221.0937
LVGI 1.07060.94361.052
TATA -0.0492-0.0215-0.0184
M-score -2.47-2.29-1.79

Acadia Healthcare Co Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.85740.8440.90920.98930.87671.0660.92170.93111.02450.915
GMI 0.96950.98030.988310.99070.97550.94640.92380.9190.9326
AQI 0.94081.01130.750.69590.67511.01441.20241.25131.35960.7752
SGI 1.75091.57291.42051.41091.40821.55111.78351.77181.78631.7499
DEPI 0.73840.80150.82511.71511.48941.40961.430.75760.82661.3835
SGAI 0.71270.76220.78580.87011.09611.36831.42231.34981.29551.0913
LVGI 1.07061.00760.71650.9350.94361.05861.32911.05041.0520.9407
TATA -0.0053-0.00280.0064-0.0014-0.0104-0.0089-0.0097-0.0079-0.0113-0.0117
M-score -2.01-2.12-2.16-2.13-2.36-2.01-1.98-1.94-1.79-2.02
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