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Apollo Education Group Inc (NAS:APOL)
Beneish M-Score
-2.26 (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 -2.26 suggests that the company is not a manipulator.

APOL' s 10-Year Beneish M-Score Range
Min: -3.79   Max: -0.79
Current: -2.26

-3.79
-0.79

During the past 13 years, the highest Beneish M-Score of Apollo Education Group Inc was -0.79. The lowest was -3.79. And the median was -2.81.


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 * 1.2278+0.528 * 1.1224+0.404 * 1.791+0.892 * 0.8298+0.115 * 1.4475
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8511+4.679 * -0.0703-0.327 * 0.8975
=-2.26

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

This Year (May14) TTM:Last Year (May13) TTM:
Accounts Receivable was $202 Mil.
Revenue was 799.919 + 679.058 + 856.335 + 844.981 = $3,180 Mil.
Gross Profit was 472.155 + 359.483 + 516.656 + 474.756 = $1,823 Mil.
Total Current Assets was $1,406 Mil.
Total Assets was $2,531 Mil.
Property, Plant and Equipment(Net PPE) was $448 Mil.
Depreciation, Depletion and Amortization(DDA) was $114 Mil.
Selling, General & Admin. Expense(SGA) was $1,124 Mil.
Total Current Liabilities was $948 Mil.
Long-Term Debt was $40 Mil.
Net Income was 66.025 + 14.605 + 98.891 + 21.551 = $201 Mil.
Non Operating Income was -0.284 + 0.107 + 0.807 + 1.596 = $2 Mil.
Cash Flow from Operations was 95.522 + 64.587 + 128.897 + 87.695 = $377 Mil.
Accounts Receivable was $198 Mil.
Revenue was 946.774 + 834.372 + 1055.183 + 996.497 = $3,833 Mil.
Gross Profit was 553.387 + 450.67 + 623.033 + 839.016 = $2,466 Mil.
Total Current Assets was $1,532 Mil.
Total Assets was $2,393 Mil.
Property, Plant and Equipment(Net PPE) was $504 Mil.
Depreciation, Depletion and Amortization(DDA) was $210 Mil.
Selling, General & Admin. Expense(SGA) was $1,592 Mil.
Total Current Liabilities was $973 Mil.
Long-Term Debt was $68 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)
=(201.66 / 3180.293) / (197.952 / 3832.826)
=0.06340925 / 0.05164649
=1.2278

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)
=(359.483 / 3832.826) / (472.155 / 3180.293)
=0.64341715 / 0.57323335
=1.1224

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 - (1406.409 + 447.968) / 2530.858) / (1 - (1532.205 + 503.609) / 2392.954)
=0.26729315 / 0.1492465
=1.791

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
=3180.293 / 3832.826
=0.8298

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))
=(209.931 / (209.931 + 503.609)) / (114.281 / (114.281 + 447.968))
=0.29421056 / 0.20325692
=1.4475

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)
=(1124.091 / 3180.293) / (1591.775 / 3832.826)
=0.35345517 / 0.41530062
=0.8511

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)
=((39.756 + 948.087) / 2530.858) / ((67.578 + 973.084) / 2392.954)
=0.39031941 / 0.43488592
=0.8975

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
=(201.072 - 2.226 - 376.701) / 2530.858
=-0.0703

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 -2.26 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

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 1.05760.94311.01880.88450.95611.1741.25521.26311.35091.2278
GMI 1.06451.10891.00330.99260.9820.8891.09351.081.07821.1224
AQI 0.9631.51491.18221.09980.99910.79461.0021.1931.6111.791
SGI 0.89920.89460.90280.90780.89660.87970.86550.84190.83010.8298
DEPI 0.8170.96970.93950.9270.79470.81010.93231.06181.3621.4475
SGAI 1.09191.0141.2391.21731.2151.38570.90930.92540.90730.8511
LVGI 1.04621.09491.07871.00190.90490.86350.90050.84660.89770.8975
TATA -0.0756-0.0125-0.045-0.0234-0.0475-0.0939-0.0774-0.0748-0.0629-0.0703
M-score -2.90-2.46-2.76-2.79-2.87-3.05-2.64-2.54-2.22-2.26
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