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Apollo Education Group Inc (NAS:APOL)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

APOL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.93   Max: -0.79
Current: -2.77

-3.93
-0.79

During the past 13 years, the highest Beneish M-Score of Apollo Education Group Inc was -0.79. The lowest was -3.93. And the median was -2.79.


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 * 1.2254+0.528 * 1.0945+0.404 * 1.2495+0.892 * 0.8389+0.115 * 0.9731
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9751+4.679 * -0.1056-0.327 * 1.03
=-2.77

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

This Year (Feb16) TTM:Last Year (Feb15) TTM:
Accounts Receivable was $231 Mil.
Revenue was 465.348 + 586.021 + 587.172 + 681.481 = $2,320 Mil.
Gross Profit was 194.708 + 294.694 + 295.48 + 382.975 = $1,168 Mil.
Total Current Assets was $1,117 Mil.
Total Assets was $2,110 Mil.
Property, Plant and Equipment(Net PPE) was $346 Mil.
Depreciation, Depletion and Amortization(DDA) was $143 Mil.
Selling, General & Admin. Expense(SGA) was $849 Mil.
Total Current Liabilities was $831 Mil.
Long-Term Debt was $41 Mil.
Net Income was -60.396 + -60.765 + -18.484 + 48.064 = $-92 Mil.
Non Operating Income was -1.113 + -0.843 + -1.286 + -2.039 = $-5 Mil.
Cash Flow from Operations was 41.95 + -18.867 + 44.879 + 68.59 = $137 Mil.
Accounts Receivable was $224 Mil.
Revenue was 575.103 + 714.525 + 682.353 + 793.61 = $2,766 Mil.
Gross Profit was 284.17 + 392.951 + 377.559 + 468.989 = $1,524 Mil.
Total Current Assets was $1,413 Mil.
Total Assets was $2,406 Mil.
Property, Plant and Equipment(Net PPE) was $403 Mil.
Depreciation, Depletion and Amortization(DDA) was $160 Mil.
Selling, General & Admin. Expense(SGA) was $1,038 Mil.
Total Current Liabilities was $920 Mil.
Long-Term Debt was $45 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)
=(230.679 / 2320.022) / (224.404 / 2765.591)
=0.09942966 / 0.08114143
=1.2254

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)
=(1523.669 / 2765.591) / (1167.857 / 2320.022)
=0.55093794 / 0.50338186
=1.0945

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 - (1116.889 + 346.498) / 2110.321) / (1 - (1412.738 + 402.92) / 2405.941)
=0.30655715 / 0.24534392
=1.2495

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
=2320.022 / 2765.591
=0.8389

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))
=(159.847 / (159.847 + 402.92)) / (142.825 / (142.825 + 346.498))
=0.28403762 / 0.29188287
=0.9731

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)
=(849.106 / 2320.022) / (1038.008 / 2765.591)
=0.36599049 / 0.37532954
=0.9751

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)
=((41.075 + 830.833) / 2110.321) / ((45.157 + 919.954) / 2405.941)
=0.41316368 / 0.4011366
=1.03

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
=(-91.581 - -5.281 - 136.552) / 2110.321
=-0.1056

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 -2.77 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 0.84551.0311.05731.06220.71510.76931.02721.1781.35681.1034
GMI 1.06081.00960.96830.94481.04910.90951.08411.011.0021.0762
AQI 0.75070.93541.2241.87030.79950.52281.18221.0021.58591.2387
SGI 1.10041.09941.15311.26531.23940.96090.89870.86550.82150.8486
DEPI 1.02741.04951.06651.00570.86090.79470.93950.93230.99280.8715
SGAI 1.04711.12691.02841.03070.86531.041.08561.04181.0291.079
LVGI 1.051.10490.92311.21840.94391.03041.07870.90050.94360.7617
TATA -0.1061-0.124-0.1341-0.1085-0.1364-0.0988-0.045-0.0774-0.0537-0.0604
M-score -3.12-3.01-2.82-2.45-3.20-3.47-2.69-2.77-2.31-2.62

Apollo Education Group Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
DSRI 1.2911.39341.2591.3441.45111.43471.31441.09691.01671.2254
GMI 1.07711.07491.11921.00191.03141.04241.06211.07921.0771.0945
AQI 1.1931.6111.7911.58591.29750.96020.90751.23871.03541.2495
SGI 0.83570.8220.81960.82930.84040.85220.85820.85370.84860.8389
DEPI 0.82981.02071.04071.20751.09451.00181.03850.90370.95090.9731
SGAI 0.91290.89030.83021.04481.07231.11141.11031.08091.02510.9751
LVGI 0.84660.89770.89750.94360.9390.9650.95720.76170.9961.03
TATA -0.0748-0.0629-0.0703-0.0537-0.0489-0.0572-0.054-0.0604-0.0933-0.1056
M-score -2.54-2.23-2.28-2.29-2.28-2.48-2.58-2.61-2.99-2.77
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