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Apollo Education Group Inc (NAS:APOL)
Beneish M-Score
-2.28 (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.

Apollo Education Group Inc has a M-score of -2.28 suggests that the company is not a manipulator.

APOL' s 10-Year Beneish M-Score Range
Min: -3.8   Max: -0.79
Current: -2.28

-3.8
-0.79

During the past 13 years, the highest Beneish M-Score of Apollo Education Group Inc was -0.79. The lowest was -3.80. And the median was -2.82.


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 Apollo Education Group 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 * 1.3509+0.528 * 1.0046+0.404 * 1.611+0.892 * 0.8301+0.115 * 1.362
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0169+4.679 * -0.0629-0.327 * 0.8977
=-2.28

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

This Year (Feb14) TTM:Last Year (Feb13) TTM:
Accounts Receivable was $199 Mil.
Revenue was 679.058 + 856.335 + 844.981 + 946.774 = $3,327 Mil.
Gross Profit was 359.483 + 516.656 + 679.374 + 488.309 = $2,044 Mil.
Total Current Assets was $1,427 Mil.
Total Assets was $2,531 Mil.
Property, Plant and Equipment(Net PPE) was $458 Mil.
Depreciation, Depletion and Amortization(DDA) was $124 Mil.
Selling, General & Admin. Expense(SGA) was $1,295 Mil.
Total Current Liabilities was $1,009 Mil.
Long-Term Debt was $44 Mil.
Net Income was 14.605 + 98.891 + 21.551 + 79.953 = $215 Mil.
Non Operating Income was 0.107 + 0.807 + 1.596 + -0.862 = $2 Mil.
Cash Flow from Operations was 64.587 + 128.897 + 87.695 + 91.403 = $373 Mil.
Accounts Receivable was $178 Mil.
Revenue was 834.372 + 1055.183 + 996.497 + 1122.258 = $4,008 Mil.
Gross Profit was 450.67 + 623.033 + 839.016 + 560.851 = $2,474 Mil.
Total Current Assets was $1,466 Mil.
Total Assets was $2,340 Mil.
Property, Plant and Equipment(Net PPE) was $503 Mil.
Depreciation, Depletion and Amortization(DDA) was $206 Mil.
Selling, General & Admin. Expense(SGA) was $1,534 Mil.
Total Current Liabilities was $1,012 Mil.
Long-Term Debt was $71 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)
=(199.102 / 3327.148) / (177.557 / 4008.31)
=0.05984164 / 0.04429722
=1.3509

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)
=(516.656 / 4008.31) / (359.483 / 3327.148)
=0.61711045 / 0.61428647
=1.0046

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 - (1427.081 + 457.503) / 2531.43) / (1 - (1466.195 + 502.702) / 2340.064)
=0.25552593 / 0.15861404
=1.611

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
=3327.148 / 4008.31
=0.8301

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))
=(205.786 / (205.786 + 502.702)) / (124.017 / (124.017 + 457.503))
=0.29045799 / 0.21326352
=1.362

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)
=(1294.656 / 3327.148) / (1533.73 / 4008.31)
=0.38911885 / 0.38263757
=1.0169

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)
=((43.642 + 1008.604) / 2531.43) / ((71.203 + 1012.307) / 2340.064)
=0.41567256 / 0.4630258
=0.8977

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
=(215 - 1.648 - 372.582) / 2531.43
=-0.0629

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.

Apollo Education Group Inc has a M-score of -2.28 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.

Apollo Education Group Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
DSRI 0.87590.94130.84531.08141.0081.06780.71140.85251.01881.2552
GMI 0.94440.99561.04481.01190.96830.93390.9311.03471.08631.01
AQI 1.27780.54970.75070.93541.2241.87030.79950.52281.18221.002
SGI 1.34261.25171.10061.09941.15311.25871.24590.95640.90280.8655
DEPI 1.46621.22640.89411.04951.06551.00660.79660.85890.93950.9323
SGAI 1.30540.80731.05481.1221.02840.96480.9011.07121.08151.0418
LVGI 1.41411.23031.051.10490.92311.21840.94391.03041.07870.9005
TATA -0.1907-0.108-0.0904-0.1458-0.1377-0.1087-0.1332-0.0988-0.045-0.0774
M-score -3.23-3.02-3.07-3.07-2.88-2.44-3.25-3.33-2.69-2.70

Apollo Education Group Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DSRI 1.07021.05760.94311.01880.88450.95611.1741.25521.26311.3509
GMI 1.05471.06451.10891.00330.99260.9820.91311.02541.00941.0046
AQI 0.64310.9631.51491.18221.09980.99910.79461.0021.1931.611
SGI 0.91250.89920.89460.90280.90780.89660.87970.86550.84190.8301
DEPI 0.80060.84520.96970.93950.9270.79470.81010.93231.06181.362
SGAI 1.08741.09191.0141.2391.21731.2151.32911.01041.0321.0169
LVGI 0.97711.04621.09491.07871.00190.90490.86350.90050.84660.8977
TATA -0.11-0.0756-0.0125-0.045-0.0234-0.0475-0.0939-0.0774-0.0748-0.0629
M-score -3.15-2.90-2.46-2.76-2.79-2.87-3.03-2.69-2.59-2.28
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