Switch to:
Apollo Education Group Inc (NAS:APOL)
Beneish M-Score
-2.99 (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 -2.99 suggests that the company is not a manipulator.

APOL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.93   Max: -0.72
Current: -2.99

-3.93
-0.72

During the past 13 years, the highest Beneish M-Score of Apollo Education Group Inc was -0.72. 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 * 1.0153+0.528 * 1.0774+0.404 * 1.0354+0.892 * 0.8498+0.115 * 0.9509
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0266+4.679 * -0.0933-0.327 * 0.996
=-2.99

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

This Year (Nov15) TTM:Last Year (Nov14) TTM:
Accounts Receivable was $206 Mil.
Revenue was 586.021 + 587.172 + 681.481 + 578.572 = $2,433 Mil.
Gross Profit was 294.694 + 295.48 + 382.975 + 285.499 = $1,259 Mil.
Total Current Assets was $1,185 Mil.
Total Assets was $2,047 Mil.
Property, Plant and Equipment(Net PPE) was $352 Mil.
Depreciation, Depletion and Amortization(DDA) was $146 Mil.
Selling, General & Admin. Expense(SGA) was $911 Mil.
Total Current Liabilities was $751 Mil.
Long-Term Debt was $21 Mil.
Net Income was -60.765 + -18.484 + 48.064 + -33.61 = $-65 Mil.
Non Operating Income was -0.843 + -1.286 + -2.039 + -1.146 = $-5 Mil.
Cash Flow from Operations was -18.867 + 44.879 + 68.59 + 36.814 = $131 Mil.
Accounts Receivable was $239 Mil.
Revenue was 714.525 + 682.353 + 793.61 + 672.754 = $2,863 Mil.
Gross Profit was 392.951 + 377.559 + 468.989 + 356.177 = $1,596 Mil.
Total Current Assets was $1,421 Mil.
Total Assets was $2,422 Mil.
Property, Plant and Equipment(Net PPE) was $418 Mil.
Depreciation, Depletion and Amortization(DDA) was $161 Mil.
Selling, General & Admin. Expense(SGA) was $1,044 Mil.
Total Current Liabilities was $871 Mil.
Long-Term Debt was $47 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)
=(206.206 / 2433.246) / (238.998 / 2863.242)
=0.08474523 / 0.08347111
=1.0153

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)
=(295.48 / 2863.242) / (294.694 / 2433.246)
=0.55729694 / 0.51727117
=1.0774

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 - (1184.991 + 351.602) / 2046.578) / (1 - (1421.216 + 418.088) / 2422.288)
=0.24918913 / 0.24067493
=1.0354

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
=2433.246 / 2863.242
=0.8498

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))
=(161.307 / (161.307 + 418.088)) / (145.566 / (145.566 + 351.602))
=0.27840592 / 0.29279036
=0.9509

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)
=(911.26 / 2433.246) / (1044.483 / 2863.242)
=0.37450385 / 0.36479033
=1.0266

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)
=((20.782 + 751.491) / 2046.578) / ((46.99 + 870.747) / 2422.288)
=0.37734843 / 0.37887196
=0.996

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
=(-64.795 - -5.314 - 131.416) / 2046.578
=-0.0933

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 -2.99 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

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
DSRI 0.84531.0311.05731.06780.71140.77291.02241.19271.35231.0935
GMI 1.04481.01190.96830.93390.9311.03471.08631.01080.99771.08
AQI 0.75070.93541.2241.87030.79950.52281.18221.0021.58591.2387
SGI 1.10061.09941.15311.25871.24590.95640.90280.85480.82420.8563
DEPI 0.89411.04951.06551.00660.79660.85890.93950.93230.95740.9037
SGAI 1.05481.1221.02840.96480.9011.07121.08151.02721.03951.0832
LVGI 1.051.10490.92311.21840.94391.03041.07870.90050.94360.7617
TATA -0.0904-0.1458-0.1377-0.1087-0.1332-0.0988-0.045-0.0774-0.0537-0.0604
M-score -3.07-3.11-2.83-2.44-3.25-3.40-2.68-2.77-2.32-2.61

Apollo Education Group Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
DSRI 1.19271.30161.4051.271.35231.46051.44271.3221.09541.0153
GMI 1.09441.08141.07951.12350.99771.02691.0381.05741.07961.0774
AQI 1.0021.1931.6111.7911.58591.29750.96020.90751.23871.0354
SGI 0.85480.82890.81510.81250.82420.8350.84750.85320.85480.8498
DEPI 0.93231.07751.40061.44750.95740.84290.74450.74670.90370.9509
SGAI 0.89650.90950.88750.82891.03951.06671.10671.10551.08241.0266
LVGI 0.90050.84660.89770.89750.94360.9390.9650.95720.76170.996
TATA -0.0774-0.0748-0.0629-0.0703-0.0537-0.0489-0.0572-0.054-0.0604-0.0933
M-score -2.70-2.51-2.18-2.23-2.32-2.31-2.51-2.61-2.61-2.99
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)

GuruFocus Premium Plus Membership

FEEDBACK