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Acadia Healthcare Co Inc (NAS:ACHC)
Beneish M-Score
-1.97 (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 -1.97 signals that the company is a manipulator.

ACHC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.4   Max: -1.96
Current: -1.97

-2.4
-1.96

During the past 5 years, the highest Beneish M-Score of Acadia Healthcare Co Inc was -1.96. The lowest was -2.40. And the median was -2.03.


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 * 0.9311+0.528 * 0.9238+0.404 * 1.2513+0.892 * 1.7718+0.115 * 0.7576
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2567+4.679 * -0.0184-0.327 * 1.0504
=-1.97

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $215 Mil.
Revenue was 479.73 + 453.66 + 365.783 + 294.901 = $1,594 Mil.
Gross Profit was 199.686 + 189.816 + 143.658 + 114.469 = $648 Mil.
Total Current Assets was $378 Mil.
Total Assets was $4,145 Mil.
Property, Plant and Equipment(Net PPE) was $1,624 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General & Admin. Expense(SGA) was $160 Mil.
Total Current Liabilities was $264 Mil.
Long-Term Debt was $2,092 Mil.
Net Income was 29.55 + 33.844 + 14.594 + 22.129 = $100 Mil.
Non Operating Income was -10.997 + -0.961 + 0.053 + 0 = $-12 Mil.
Cash Flow from Operations was 50.944 + 72.919 + 18.222 + 46.24 = $188 Mil.
Accounts Receivable was $130 Mil.
Revenue was 294.479 + 213.803 + 201.418 + 189.999 = $900 Mil.
Gross Profit was 111.785 + 80.734 + 73.779 + 71.389 = $338 Mil.
Total Current Assets was $230 Mil.
Total Assets was $2,140 Mil.
Property, Plant and Equipment(Net PPE) was $1,026 Mil.
Depreciation, Depletion and Amortization(DDA) was $27 Mil.
Selling, General & Admin. Expense(SGA) was $72 Mil.
Total Current Liabilities was $143 Mil.
Long-Term Debt was $1,016 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)
=(214.883 / 1594.074) / (130.253 / 899.699)
=0.13480114 / 0.14477397
=0.9311

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)
=(189.816 / 899.699) / (199.686 / 1594.074)
=0.37533331 / 0.40627286
=0.9238

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 - (378.271 + 1624.166) / 4145.239) / (1 - (229.84 + 1026.378) / 2140.468)
=0.51693087 / 0.41311059
=1.2513

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
=1594.074 / 899.699
=1.7718

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))
=(26.538 / (26.538 + 1026.378)) / (55.891 / (55.891 + 1624.166))
=0.02520429 / 0.03326732
=0.7576

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)
=(159.745 / 1594.074) / (71.743 / 899.699)
=0.10021178 / 0.07974111
=1.2567

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)
=((2092.317 + 264.452) / 4145.239) / ((1016.002 + 142.54) / 2140.468)
=0.5685484 / 0.5412564
=1.0504

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
=(100.117 - -11.905 - 188.325) / 4145.239
=-0.0184

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 -1.97 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 0.85740.8767
GMI 0.96950.9907
AQI 0.94080.683
SGI 1.75091.4082
DEPI 0.73841.4894
SGAI 0.39941.0231
LVGI 1.07060.9493
TATA -0.0188-0.0214
M-score -2.02-2.39

Acadia Healthcare Co Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.98460.85740.8440.90920.98930.87671.0660.92170.9311
GMI 0.9590.96950.98030.988310.99070.97550.94640.9238
AQI 0.99130.94081.01130.750.69590.6831.01441.20241.2513
SGI 1.73011.75091.57291.42051.41091.40821.55111.78351.7718
DEPI 0.93020.73840.80150.82511.71511.48941.40961.430.7576
SGAI 0.9250.39180.43990.48260.54661.05161.26371.29811.2567
LVGI 1.02061.07061.00760.71650.9350.94931.05861.32911.0504
TATA -0.019-0.0188-0.0156-0.0108-0.0142-0.0214-0.0157-0.0208-0.0184
M-score -1.96-2.02-2.12-2.18-2.13-2.40-2.03-2.01-1.97
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