Switch to:
American Public Education Inc (NAS:APEI)
Beneish M-Score
-2.78 (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.

American Public Education Inc has a M-score of -2.78 suggests that the company is not a manipulator.

APEI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37   Max: 2.86
Current: -2.78

-3.37
2.86

During the past 13 years, the highest Beneish M-Score of American Public Education Inc was 2.86. The lowest was -3.37. And the median was -2.98.


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 American Public Education 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 * 1.1938+0.528 * 1.0114+0.404 * 1.0035+0.892 * 0.945+0.115 * 0.8559
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9741+4.679 * -0.0944-0.327 * 0.96
=-2.78

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $6.5 Mil.
Revenue was 76.745 + 83.966 + 85.912 + 76.291 = $322.9 Mil.
Gross Profit was 47.559 + 54.258 + 56.187 + 47.124 = $205.1 Mil.
Total Current Assets was $143.1 Mil.
Total Assets was $315.4 Mil.
Property, Plant and Equipment(Net PPE) was $107.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.9 Mil.
Selling, General & Admin. Expense(SGA) was $131.3 Mil.
Total Current Liabilities was $44.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 6.596 + 10.34 + 9.791 + 6.757 = $33.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 8.735 + 20.052 + 14.403 + 20.077 = $63.3 Mil.
Accounts Receivable was $5.7 Mil.
Revenue was 80.263 + 85.444 + 91.297 + 84.707 = $341.7 Mil.
Gross Profit was 50.567 + 55.184 + 59.703 + 54.081 = $219.5 Mil.
Total Current Assets was $123.5 Mil.
Total Assets was $291.4 Mil.
Property, Plant and Equipment(Net PPE) was $108.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.6 Mil.
Selling, General & Admin. Expense(SGA) was $142.7 Mil.
Total Current Liabilities was $42.6 Mil.
Long-Term Debt was $0.0 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)
=(6.464 / 322.914) / (5.73 / 341.711)
=0.02001771 / 0.01676856
=1.1938

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)
=(219.535 / 341.711) / (205.128 / 322.914)
=0.6424581 / 0.63524034
=1.0114

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 - (143.117 + 107.49) / 315.412) / (1 - (123.531 + 108.24) / 291.442)
=0.20546143 / 0.204744
=1.0035

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
=322.914 / 341.711
=0.945

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))
=(17.561 / (17.561 + 108.24)) / (20.947 / (20.947 + 107.49))
=0.13959348 / 0.16309163
=0.8559

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)
=(131.317 / 322.914) / (142.655 / 341.711)
=0.40666246 / 0.41747266
=0.9741

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)
=((0 + 44.274) / 315.412) / ((0 + 42.615) / 291.442)
=0.14036879 / 0.1462212
=0.96

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
=(33.484 - 0 - 63.267) / 315.412
=-0.0944

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.

American Public Education Inc has a M-score of -2.78 suggests that the company will not 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.

American Public Education Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.52080.8151.00690.89110.7040.91170.86870.60611.3786
GMI 0.96190.96610.97580.98090.97740.97810.98611.01751.0139
AQI 1.15460.95191.19140.55830.70768.12674.11080.841.0505
SGI 1.72541.55071.39061.331.31391.20411.05091.06230.9368
DEPI 0.9890.9831.03591.28930.97831.14570.91520.95290.8602
SGAI 0.9120.98230.97241.09581.06771.1011.0471.00061.0079
LVGI 0.75011.00340.9111.05911.07560.81320.86180.81091.0321
TATA -0.179-0.1722-0.1107-0.1213-0.1492-0.0446-0.064-0.0676-0.0816
M-score -2.97-3.00-2.54-3.04-3.340.34-1.58-3.10-2.57

American Public Education Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.05161.0220.92050.60610.6670.67051.381.37860.98441.1938
GMI 1.00291.01511.02131.01751.01141.0111.01171.01391.01371.0114
AQI 3.16893.3873.37970.840.86880.85010.85441.05051.04371.0035
SGI 1.03941.03311.02741.06231.03811.00880.97550.93680.9410.945
DEPI 0.89810.90560.92030.95290.96360.97610.96820.86020.85950.8559
SGAI 1.04831.05061.0571.00061.00171.00580.99491.00790.98660.9741
LVGI 0.81740.79460.87740.81090.80760.90451.01651.03211.08320.96
TATA -0.036-0.0251-0.0489-0.0676-0.0549-0.0859-0.0714-0.0816-0.115-0.0944
M-score -1.65-1.53-1.76-3.10-3.00-3.20-2.55-2.57-3.10-2.78
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK