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Acadia Healthcare Co Inc (NAS:ACHC)
Beneish M-Score
-2.01 (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 -2.01 signals that the company is a manipulator.

ACHC' s 10-Year Beneish M-Score Range
Min: -2.4   Max: -2.01
Current: -2.01

-2.4
-2.01

During the past 5 years, the highest Beneish M-Score of Acadia Healthcare Co Inc was -2.01. The lowest was -2.40. And the median was -2.12.


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 * 0.9217+0.528 * 0.9464+0.404 * 1.2024+0.892 * 1.7835+0.115 * 1.43
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2981+4.679 * -0.0208-0.327 * 1.3291
=-2.01

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $182 Mil.
Revenue was 453.66 + 365.783 + 294.901 + 294.479 = $1,409 Mil.
Gross Profit was 189.816 + 143.658 + 114.469 + 111.785 = $560 Mil.
Total Current Assets was $326 Mil.
Total Assets was $3,926 Mil.
Property, Plant and Equipment(Net PPE) was $1,455 Mil.
Depreciation, Depletion and Amortization(DDA) was $49 Mil.
Selling, General & Admin. Expense(SGA) was $139 Mil.
Total Current Liabilities was $243 Mil.
Long-Term Debt was $1,915 Mil.
Net Income was 33.844 + 14.594 + 22.129 + 25.402 = $96 Mil.
Non Operating Income was -0.961 + 0.053 + 0 + 1.527 = $1 Mil.
Cash Flow from Operations was 72.919 + 18.222 + 46.24 + 39.807 = $177 Mil.
Accounts Receivable was $111 Mil.
Revenue was 213.803 + 201.418 + 189.999 + 184.702 = $790 Mil.
Gross Profit was 80.734 + 73.779 + 71.389 + 71.107 = $297 Mil.
Total Current Assets was $450 Mil.
Total Assets was $1,593 Mil.
Property, Plant and Equipment(Net PPE) was $419 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $60 Mil.
Total Current Liabilities was $103 Mil.
Long-Term Debt was $556 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)
=(182.315 / 1408.823) / (110.904 / 789.922)
=0.12940944 / 0.14039867
=0.9217

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)
=(143.658 / 789.922) / (189.816 / 1408.823)
=0.37599788 / 0.39730186
=0.9464

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 - (325.905 + 1455.39) / 3926.385) / (1 - (449.596 + 419.386) / 1592.552)
=0.54632696 / 0.45434623
=1.2024

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
=1408.823 / 789.922
=1.7835

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))
=(20.627 / (20.627 + 419.386)) / (49.326 / (49.326 + 1455.39))
=0.04687816 / 0.03278094
=1.43

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)
=(138.933 / 1408.823) / (60.008 / 789.922)
=0.09861636 / 0.07596699
=1.2981

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)
=((1914.555 + 243.108) / 3926.385) / ((555.812 + 102.665) / 1592.552)
=0.54952915 / 0.41347284
=1.3291

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
=(95.969 - 0.619 - 177.188) / 3926.385
=-0.0208

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 -2.01 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

Dec10Dec11Dec12Dec13Dec14
DSRI 0.8767
GMI 0.9907
AQI 0.683
SGI 1.4082
DEPI 1.4894
SGAI 1.0231
LVGI 0.9493
TATA -0.0214
M-score -2.39

Acadia Healthcare Co Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.85740.8440.90920.98930.87671.0660.9217
GMI 0.96950.98030.988310.99070.97550.9464
AQI 0.94081.01130.750.69590.6831.01441.2024
SGI 1.75091.57291.42051.41091.40821.55111.7835
DEPI 0.73840.80150.82511.71511.48941.40961.43
SGAI 0.39180.43990.48260.54661.05161.26371.2981
LVGI 1.07061.00760.71650.9350.94931.05861.3291
TATA -0.0188-0.0156-0.0108-0.0142-0.0214-0.0157-0.0208
M-score -2.02-2.12-2.18-2.13-2.40-2.03-2.01
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