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Apollo Education Group Inc (NAS:APOL)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

APOL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.4   Max: -1.59
Current: -2.51

-3.4
-1.59

During the past 13 years, the highest Beneish M-Score of Apollo Education Group Inc was -1.59. The lowest was -3.40. And the median was -2.76.


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 * 1.3342+0.528 * 1.1076+0.404 * 1.0647+0.892 * 0.819+0.115 * 1.0582
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9133+4.679 * -0.0628-0.327 * 0.9501
=-2.51

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Accounts Receivable was $210 Mil.
Revenue was 492.479 + 558.002 + 465.348 + 586.021 = $2,102 Mil.
Gross Profit was 231.777 + 283.516 + 194.708 + 294.694 = $1,005 Mil.
Total Current Assets was $1,089 Mil.
Total Assets was $2,013 Mil.
Property, Plant and Equipment(Net PPE) was $333 Mil.
Depreciation, Depletion and Amortization(DDA) was $110 Mil.
Selling, General & Admin. Expense(SGA) was $726 Mil.
Total Current Liabilities was $715 Mil.
Long-Term Debt was $35 Mil.
Net Income was 15.863 + 20.744 + -60.396 + -60.765 = $-85 Mil.
Non Operating Income was -0.983 + -0.273 + -1.113 + -0.843 = $-3 Mil.
Cash Flow from Operations was 35.451 + -13.45 + 41.95 + -18.867 = $45 Mil.
Accounts Receivable was $192 Mil.
Revenue was 600.291 + 676.358 + 575.103 + 714.525 = $2,566 Mil.
Gross Profit was 300.104 + 381.517 + 284.17 + 392.951 = $1,359 Mil.
Total Current Assets was $1,223 Mil.
Total Assets was $2,201 Mil.
Property, Plant and Equipment(Net PPE) was $370 Mil.
Depreciation, Depletion and Amortization(DDA) was $132 Mil.
Selling, General & Admin. Expense(SGA) was $971 Mil.
Total Current Liabilities was $832 Mil.
Long-Term Debt was $32 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)
=(209.747 / 2101.85) / (191.945 / 2566.277)
=0.09979161 / 0.07479512
=1.3342

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)
=(1358.742 / 2566.277) / (1004.695 / 2101.85)
=0.52946038 / 0.47800509
=1.1076

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 - (1088.725 + 332.702) / 2012.906) / (1 - (1223.3 + 370.281) / 2201.064)
=0.29384333 / 0.27599516
=1.0647

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
=2101.85 / 2566.277
=0.819

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))
=(132.012 / (132.012 + 370.281)) / (109.938 / (109.938 + 332.702))
=0.26281871 / 0.24836888
=1.0582

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)
=(726.457 / 2101.85) / (971.189 / 2566.277)
=0.34562742 / 0.37844278
=0.9133

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)
=((35.186 + 715.477) / 2012.906) / ((31.566 + 832.344) / 2201.064)
=0.37292501 / 0.39249654
=0.9501

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
=(-84.554 - -3.212 - 45.084) / 2012.906
=-0.0628

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 -2.51 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 local exchange's currency.

Apollo Education Group Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
DSRI 1.0311.05731.06780.71140.77291.0371.1831.3441.09351.3342
GMI 1.01190.96830.93390.9311.03471.08691.0061.00191.081.1076
AQI 0.93541.2241.87030.79950.52281.18221.0021.58591.38881.0647
SGI 1.09941.15311.25871.24590.95640.89010.86180.82930.85630.819
DEPI 1.04951.06551.00660.79660.85890.93950.73921.25210.97721.0582
SGAI 1.1221.02840.96480.9011.07121.06841.03441.04481.08320.9097
LVGI 1.10490.92311.21840.94391.03041.07870.90050.94360.7630.9501
TATA -0.124-0.1377-0.1087-0.1332-0.0988-0.045-0.0774-0.0537-0.0605-0.0628
M-score -3.01-2.83-2.44-3.25-3.40-2.68-2.80-2.29-2.55-2.51

Apollo Education Group Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
DSRI 1.2591.3441.45111.43471.31691.09351.01341.22121.04541.3342
GMI 1.11921.00191.03141.04241.06121.081.07781.09531.11681.1076
AQI 1.7911.58591.29750.96020.90751.38881.03541.24951.27371.0647
SGI 0.81960.82930.84040.85220.85650.85630.85140.84180.83440.819
DEPI 1.04071.25211.13341.03751.12150.97721.03821.06531.01941.0582
SGAI 0.83021.04481.07231.11141.10861.08321.02750.97760.95020.9133
LVGI 0.89750.94360.9390.9650.95720.7630.9961.031.00650.9501
TATA -0.0703-0.0537-0.0489-0.0572-0.054-0.0605-0.0933-0.1056-0.0834-0.0628
M-score -2.28-2.29-2.28-2.48-2.56-2.55-2.98-2.76-2.80-2.51
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