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DeVry Education Group Inc (NYSE:DV)
Beneish M-Score
-2.47 (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.

DeVry Education Group Inc has a M-score of -2.47 suggests that the company is not a manipulator.

DV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Max: -1.21
Current: -2.47

-3.36
-1.21

During the past 13 years, the highest Beneish M-Score of DeVry Education Group Inc was -1.21. The lowest was -3.36. And the median was -2.65.


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 DeVry 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 * 1.4133+0.528 * 1.0321+0.404 * 1.1772+0.892 * 0.965+0.115 * 0.9547
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9959+4.679 * -0.0814-0.327 * 1.1353
=-2.47

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $122 Mil.
Revenue was 456.203 + 441.413 + 473.189 + 489.83 = $1,861 Mil.
Gross Profit was 215.182 + 196.336 + 223.46 + 236.644 = $872 Mil.
Total Current Assets was $400 Mil.
Total Assets was $1,909 Mil.
Property, Plant and Equipment(Net PPE) was $536 Mil.
Depreciation, Depletion and Amortization(DDA) was $83 Mil.
Selling, General & Admin. Expense(SGA) was $679 Mil.
Total Current Liabilities was $292 Mil.
Long-Term Debt was $0 Mil.
Net Income was -50.587 + 5.465 + 29.926 + 47.12 = $32 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -40.062 + 116.581 + -6.26 + 117.058 = $187 Mil.
Accounts Receivable was $89 Mil.
Revenue was 484.88 + 462.044 + 485.073 + 496.117 = $1,928 Mil.
Gross Profit was 234.071 + 215.713 + 229 + 253.486 = $932 Mil.
Total Current Assets was $573 Mil.
Total Assets was $1,968 Mil.
Property, Plant and Equipment(Net PPE) was $543 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General & Admin. Expense(SGA) was $706 Mil.
Total Current Liabilities was $265 Mil.
Long-Term Debt was $0 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)
=(121.817 / 1860.635) / (89.318 / 1928.114)
=0.06547066 / 0.04632402
=1.4133

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)
=(196.336 / 1928.114) / (215.182 / 1860.635)
=0.48351394 / 0.46845405
=1.0321

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 - (400.288 + 535.551) / 1908.912) / (1 - (572.779 + 542.989) / 1967.866)
=0.50975268 / 0.43300611
=1.1772

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
=1860.635 / 1928.114
=0.965

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))
=(79.792 / (79.792 + 542.989)) / (83.016 / (83.016 + 535.551))
=0.12812208 / 0.13420697
=0.9547

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)
=(678.798 / 1860.635) / (706.331 / 1928.114)
=0.36482061 / 0.36633259
=0.9959

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)
=((0 + 291.809) / 1908.912) / ((0 + 264.98) / 1967.866)
=0.15286666 / 0.13465348
=1.1353

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
=(31.924 - 0 - 187.317) / 1908.912
=-0.0814

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.

DeVry Education Group Inc has a M-score of -2.47 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.

DeVry Education Group Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.10390.83211.09571.41280.87120.85290.84591.58440.9691.0567
GMI 0.93920.96180.88760.99520.95270.9861.07551.05111.04391.0258
AQI 1.01721.01781.02751.16070.87960.90051.16540.95160.95331.0328
SGI 1.07541.11191.16961.33851.31051.1280.9590.94820.97910.993
DEPI 1.11561.03291.01581.01351.01991.19530.88041.03430.97970.9616
SGAI 0.97720.99961.00640.97750.93590.97311.10651.00990.98280.9799
LVGI 0.79660.62061.05291.38840.73530.80950.99940.99640.93140.9786
TATA -0.0553-0.0827-0.0681-0.0585-0.0693-0.0419-0.0757-0.0833-0.0658-0.0305
M-score -2.52-2.81-2.62-2.13-2.62-2.66-2.94-2.37-2.81-2.54

DeVry Education Group Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.15370.88010.96510.9690.92840.75730.92621.05671.11821.4133
GMI 1.051.0481.04811.04391.02531.02951.03441.02581.0381.0321
AQI 0.94980.95870.93940.95330.93030.95641.03931.03281.04851.1772
SGI 0.95210.95850.97260.97910.99961.00111.00190.9930.97660.965
DEPI 1.04951.06611.05540.97970.97390.99530.97850.96160.94060.9547
SGAI 1.0161.02451.01810.98280.950.93350.93450.97990.99260.9959
LVGI 1.00840.9220.97630.93140.89310.82820.93910.97860.97271.1353
TATA -0.0843-0.0682-0.0869-0.0658-0.0486-0.0452-0.0299-0.0305-0.0251-0.0814
M-score -2.77-2.91-2.93-2.81-2.75-2.85-2.62-2.54-2.47-2.47
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