Switch to:
Apollo Education Group Inc (NAS:APOL)
Beneish M-Score
-2.31 (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 -2.31 suggests that the company is not a manipulator.

APOL' s 10-Year Beneish M-Score Range
Min: -3.93   Max: -0.67
Current: -2.31

-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 -2.79.


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 * 1.4486+0.528 * 1.0317+0.404 * 1.2975+0.892 * 0.8419+0.115 * 0.886
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.068+4.679 * -0.0489-0.327 * 0.939
=-2.31

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

This Year (Nov14) TTM:Last Year (Nov13) TTM:
Accounts Receivable was $239 Mil.
Revenue was 719.052 + 688.866 + 799.919 + 679.058 = $2,887 Mil.
Gross Profit was 394.788 + 374.88 + 472.155 + 359.483 = $1,601 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 $151 Mil.
Selling, General & Admin. Expense(SGA) was $1,054 Mil.
Total Current Liabilities was $871 Mil.
Long-Term Debt was $47 Mil.
Net Income was 33.785 + 29.783 + 66.025 + 14.605 = $144 Mil.
Non Operating Income was -1.285 + -1.177 + -0.284 + 0.107 = $-3 Mil.
Cash Flow from Operations was 18.299 + 86.901 + 95.522 + 64.587 = $265 Mil.
Accounts Receivable was $196 Mil.
Revenue was 848.148 + 799.595 + 946.774 + 834.372 = $3,429 Mil.
Gross Profit was 510.946 + 447.266 + 553.387 + 450.67 = $1,962 Mil.
Total Current Assets was $1,533 Mil.
Total Assets was $2,463 Mil.
Property, Plant and Equipment(Net PPE) was $473 Mil.
Depreciation, Depletion and Amortization(DDA) was $145 Mil.
Selling, General & Admin. Expense(SGA) was $1,173 Mil.
Total Current Liabilities was $939 Mil.
Long-Term Debt was $55 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)
=(238.998 / 2886.895) / (195.965 / 3428.889)
=0.08278722 / 0.05715116
=1.4486

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)
=(374.88 / 3428.889) / (394.788 / 2886.895)
=0.57227545 / 0.55468107
=1.0317

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 - (1421.216 + 418.088) / 2422.288) / (1 - (1533.103 + 473.058) / 2463.03)
=0.24067493 / 0.18549064
=1.2975

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
=2886.895 / 3428.889
=0.8419

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))
=(145.05 / (145.05 + 473.058)) / (150.641 / (150.641 + 418.088))
=0.23466773 / 0.26487308
=0.886

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)
=(1054.391 / 2886.895) / (1172.597 / 3428.889)
=0.36523358 / 0.34197578
=1.068

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)
=((46.99 + 870.747) / 2422.288) / ((54.567 + 939.268) / 2463.03)
=0.37887196 / 0.40350097
=0.939

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
=(144.198 - -2.639 - 265.309) / 2422.288
=-0.0489

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 -2.31 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 0.96930.84531.0311.05731.06220.71510.77291.02241.19271.34
GMI 0.99561.04481.01190.96830.94480.92031.03471.08631.01081.0013
AQI 0.54970.75070.93541.2241.87030.79950.52281.18221.0021.5859
SGI 1.25171.10061.09941.15311.26531.23940.95640.90280.85480.8317
DEPI 1.22640.89411.04951.06551.00660.79660.85890.93950.93230.9928
SGAI 0.80731.05481.1221.02841.03070.84331.07121.08151.02721.0436
LVGI 1.23031.051.10490.92311.21840.94391.03041.07870.90050.9436
TATA -0.108-0.0904-0.1458-0.1377-0.1085-0.1332-0.0988-0.045-0.0774-0.0537
M-score -2.99-3.07-3.11-2.83-2.45-3.25-3.40-2.68-2.77-2.32

Apollo Education Group Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 1.02240.79740.93691.17221.19271.30161.40231.26481.34371.4486
GMI 1.00330.99260.9820.8891.09441.08141.07971.1241.00191.0317
AQI 1.18221.09980.99910.79461.0021.1931.6111.7911.58591.2975
SGI 0.90280.90780.89660.87970.85480.82890.81670.81580.82950.8419
DEPI 0.93950.9270.79470.81010.93231.07751.3621.44750.99280.886
SGAI 1.2391.21731.2151.38570.89650.90950.89090.83551.04021.068
LVGI 1.07871.00190.90490.86350.90050.84660.89770.89750.94360.939
TATA -0.045-0.0234-0.0475-0.0939-0.0774-0.0748-0.0629-0.0703-0.0537-0.0489
M-score -2.76-2.87-2.89-3.05-2.70-2.51-2.18-2.23-2.32-2.31
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)
Free 7-day Trial
FEEDBACK