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Apollo Education Group Inc (NAS:APOL)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

APOL' s 10-Year Beneish M-Score Range
Min: -3.93   Max: -0.67
Current: -2.61

-3.93
-0.67

During the past 13 years, the highest Beneish M-Score of Apollo Education Group Inc was -0.67. The lowest was -3.93. And the median was -2.77.


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 * 1.3064+0.528 * 1.0617+0.404 * 0.9075+0.892 * 0.8634+0.115 * 0.7757
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1099+4.679 * -0.054-0.327 * 0.9572
=-2.61

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

This Year (May15) TTM:Last Year (May14) TTM:
Accounts Receivable was $207 Mil.
Revenue was 681.481 + 578.572 + 719.052 + 709.666 = $2,689 Mil.
Gross Profit was 382.975 + 285.499 + 394.788 + 387.062 = $1,450 Mil.
Total Current Assets was $1,381 Mil.
Total Assets was $2,351 Mil.
Property, Plant and Equipment(Net PPE) was $400 Mil.
Depreciation, Depletion and Amortization(DDA) was $142 Mil.
Selling, General & Admin. Expense(SGA) was $1,027 Mil.
Total Current Liabilities was $838 Mil.
Long-Term Debt was $40 Mil.
Net Income was 48.064 + -33.61 + 33.785 + 29.783 = $78 Mil.
Non Operating Income was -2.039 + -1.146 + -1.285 + -1.177 = $-6 Mil.
Cash Flow from Operations was 68.59 + 36.814 + 18.299 + 86.901 = $211 Mil.
Accounts Receivable was $183 Mil.
Revenue was 793.61 + 672.754 + 848.148 + 799.595 = $3,114 Mil.
Gross Profit was 468.989 + 356.177 + 510.946 + 447.266 = $1,783 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 $1,072 Mil.
Total Current Liabilities was $948 Mil.
Long-Term Debt was $40 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)
=(206.951 / 2688.771) / (183.474 / 3114.107)
=0.07696862 / 0.05891705
=1.3064

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)
=(285.499 / 3114.107) / (382.975 / 2688.771)
=0.57267718 / 0.53940034
=1.0617

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 - (1381.473 + 399.584) / 2351.441) / (1 - (1406.409 + 447.968) / 2530.858)
=0.24256786 / 0.26729315
=0.9075

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
=2688.771 / 3114.107
=0.8634

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))
=(114.281 / (114.281 + 447.968)) / (141.878 / (141.878 + 399.584))
=0.20325692 / 0.26202762
=0.7757

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)
=(1027.37 / 2688.771) / (1072.051 / 3114.107)
=0.3820965 / 0.34425631
=1.1099

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)
=((40.383 + 838.161) / 2351.441) / ((39.756 + 948.087) / 2530.858)
=0.37361941 / 0.39031941
=0.9572

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
=(78.022 - -5.647 - 210.604) / 2351.441
=-0.054

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 -2.61 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

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
DSRI 0.96930.84531.0311.05731.06780.71140.77291.02241.19271.34
GMI 0.99561.04481.01190.96830.93390.9311.03471.08631.01081.0013
AQI 0.54970.75070.93541.2241.87030.79950.52281.18221.0021.5859
SGI 1.25171.10061.09941.15311.25871.24590.95640.90280.85480.8317
DEPI 1.22640.89411.04951.06551.00660.79660.85890.93950.93230.9928
SGAI 0.80731.05481.1221.02840.96480.9011.07121.08151.02721.0436
LVGI 1.23031.051.10490.92311.21840.94391.03041.07870.90050.9436
TATA -0.108-0.0904-0.1458-0.1377-0.1087-0.1332-0.0988-0.045-0.0774-0.0537
M-score -2.99-3.07-3.11-2.83-2.44-3.25-3.40-2.68-2.77-2.32

Apollo Education Group Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
DSRI 0.93691.17221.19271.30161.4051.271.341.44451.42631.3064
GMI 0.9820.8891.09441.08141.07951.12351.00131.0311.04221.0617
AQI 0.99910.79461.0021.1931.6111.7911.58591.29750.96020.9075
SGI 0.89660.87970.85480.82890.81510.81250.83170.84430.85730.8634
DEPI 0.79470.81010.93231.07751.40061.44750.99280.8860.7720.7757
SGAI 1.2151.38570.89650.90950.88750.82891.04361.07131.11121.1099
LVGI 0.90490.86350.90050.84660.89770.89750.94360.9390.9650.9572
TATA -0.0475-0.0939-0.0774-0.0748-0.0629-0.0703-0.0537-0.0489-0.0572-0.054
M-score -2.89-3.05-2.70-2.51-2.18-2.23-2.32-2.31-2.51-2.61
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