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Apollo Education Group Inc (NAS:APOL)
Beneish M-Score
-2.26 (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 -2.26 suggests that the company is not a manipulator.

APOL' s 10-Year Beneish M-Score Range
Min: -3.33   Max: -1.45
Current: -2.26

-3.33
-1.45

During the past 13 years, the highest Beneish M-Score of Apollo Education Group Inc was -1.45. The lowest was -3.33. And the median was -2.90.


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 * 1.3568+0.528 * 1.0685+0.404 * 1.5859+0.892 * 0.8215+0.115 * 0.9928
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.926+4.679 * -0.0537-0.327 * 0.9436
=-2.26

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

This Year (Aug14) TTM:Last Year (Aug13) TTM:
Accounts Receivable was $205 Mil.
Revenue was 688.866 + 799.919 + 679.058 + 856.335 = $3,024 Mil.
Gross Profit was 374.88 + 472.155 + 359.483 + 516.656 = $1,723 Mil.
Total Current Assets was $2,043 Mil.
Total Assets was $3,093 Mil.
Property, Plant and Equipment(Net PPE) was $436 Mil.
Depreciation, Depletion and Amortization(DDA) was $151 Mil.
Selling, General & Admin. Expense(SGA) was $1,061 Mil.
Total Current Liabilities was $1,543 Mil.
Long-Term Debt was $48 Mil.
Net Income was 29.783 + 66.025 + 14.605 + 98.891 = $209 Mil.
Non Operating Income was -1.177 + -0.284 + 0.107 + 0.807 = $-1 Mil.
Cash Flow from Operations was 86.901 + 95.522 + 64.587 + 128.897 = $376 Mil.
Accounts Receivable was $184 Mil.
Revenue was 844.981 + 946.774 + 834.372 + 1055.183 = $3,681 Mil.
Gross Profit was 679.374 + 488.309 + 450.67 + 623.033 = $2,241 Mil.
Total Current Assets was $2,150 Mil.
Total Assets was $2,998 Mil.
Property, Plant and Equipment(Net PPE) was $473 Mil.
Depreciation, Depletion and Amortization(DDA) was $162 Mil.
Selling, General & Admin. Expense(SGA) was $1,394 Mil.
Total Current Liabilities was $1,570 Mil.
Long-Term Debt was $64 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)
=(204.989 / 3024.178) / (183.916 / 3681.31)
=0.06778338 / 0.04995939
=1.3568

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)
=(472.155 / 3681.31) / (374.88 / 3024.178)
=0.60885554 / 0.56979913
=1.0685

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 - (2042.55 + 435.733) / 3092.935) / (1 - (2149.656 + 472.614) / 2997.947)
=0.19872775 / 0.12531142
=1.5859

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
=3024.178 / 3681.31
=0.8215

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))
=(161.733 / (161.733 + 472.614)) / (150.575 / (150.575 + 435.733))
=0.25495982 / 0.25681894
=0.9928

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)
=(1060.729 / 3024.178) / (1394.416 / 3681.31)
=0.35074953 / 0.37878255
=0.926

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)
=((47.59 + 1543.4) / 3092.935) / ((64.004 + 1570.315) / 2997.947)
=0.5143949 / 0.54514606
=0.9436

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
=(209.304 - -0.547 - 375.907) / 3092.935
=-0.0537

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 -2.26 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 1.08480.73351.0311.05731.06220.71510.84860.93121.1781.3568
GMI 0.98281.06081.00960.96830.94480.92031.03681.08411.011.002
AQI 0.51850.77310.93541.2241.87030.79950.52281.18221.0021.5859
SGI 1.25191.10041.09941.15311.26531.23940.96090.89870.86550.8215
DEPI 1.26861.03361.04951.06651.00570.79660.85890.93950.93230.9928
SGAI 0.80981.04711.12691.02841.03070.84331.06711.08561.04181.029
LVGI 1.34251.01561.10490.90691.24010.94391.03041.07870.90050.9436
TATA -0.1059-0.0904-0.1458-0.152-0.1085-0.1332-0.0988-0.045-0.0774-0.0537
M-score -2.92-3.13-3.12-2.89-2.45-3.25-3.33-2.77-2.77-2.31

Apollo Education Group Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 0.96210.93120.80380.94761.1911.1781.27951.37511.23631.3568
GMI 1.17161.08411.07531.06611.07860.94710.92970.92280.86111.0685
AQI 1.51491.18221.09980.99910.79461.0021.1931.6111.7911.5859
SGI 0.90370.89870.90070.88650.86580.86550.84320.83290.83460.8215
DEPI 1.01640.93950.96380.79470.81010.93230.97521.3621.44750.9928
SGAI 1.25561.08561.06561.06451.01061.15771.18511.16841.29680.926
LVGI 1.09491.07871.00190.90490.86350.90050.84660.89770.89750.9436
TATA -0.0423-0.045-0.0234-0.0475-0.0939-0.0774-0.0748-0.0629-0.0703-0.0537
M-score -2.57-2.77-2.79-2.82-2.88-2.83-2.66-2.33-2.46-2.26
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