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DeVry Education Group Inc (NYSE:DV)
Beneish M-Score
-2.94 (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 -2.94 suggests that the company is not a manipulator.

DV' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -1.21
Current: -2.94

-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 -2.64.


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 * 0.9651+0.528 * 1.0481+0.404 * 0.9394+0.892 * 0.9726+0.115 * 0.9528
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0181+4.679 * -0.0869-0.327 * 0.9763
=-2.94

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $161 Mil.
Revenue was 496.117 + 491.269 + 450.913 + 479.964 = $1,918 Mil.
Gross Profit was 253.486 + 248.272 + 209.176 + 234.266 = $945 Mil.
Total Current Assets was $638 Mil.
Total Assets was $2,049 Mil.
Property, Plant and Equipment(Net PPE) was $552 Mil.
Depreciation, Depletion and Amortization(DDA) was $91 Mil.
Selling, General & Admin. Expense(SGA) was $750 Mil.
Total Current Liabilities was $406 Mil.
Long-Term Debt was $0 Mil.
Net Income was 55.525 + 48.155 + -7.132 + -32.31 = $64 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 150.088 + -28.099 + 141.22 + -20.918 = $242 Mil.
Accounts Receivable was $172 Mil.
Revenue was 503.825 + 500.666 + 479.92 + 487.889 = $1,972 Mil.
Gross Profit was 266.997 + 260.422 + 240.467 + 250.73 = $1,019 Mil.
Total Current Assets was $548 Mil.
Total Assets was $2,019 Mil.
Property, Plant and Equipment(Net PPE) was $570 Mil.
Depreciation, Depletion and Amortization(DDA) was $89 Mil.
Selling, General & Admin. Expense(SGA) was $758 Mil.
Total Current Liabilities was $409 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)
=(161.202 / 1918.263) / (171.736 / 1972.3)
=0.0840354 / 0.08707397
=0.9651

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)
=(248.272 / 1972.3) / (253.486 / 1918.263)
=0.51646098 / 0.49273744
=1.0481

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 - (638.496 + 551.511) / 2048.865) / (1 - (548.025 + 569.963) / 2018.834)
=0.41918721 / 0.44622094
=0.9394

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
=1918.263 / 1972.3
=0.9726

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))
=(88.84 / (88.84 + 569.963)) / (90.926 / (90.926 + 551.511))
=0.13485063 / 0.14153294
=0.9528

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)
=(750.455 / 1918.263) / (757.86 / 1972.3)
=0.39121591 / 0.38425189
=1.0181

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 + 405.688) / 2048.865) / ((0 + 409.455) / 2018.834)
=0.19800621 / 0.20281757
=0.9763

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
=(64.238 - 0 - 242.291) / 2048.865
=-0.0869

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 -2.94 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 1.0041.4011.10390.83211.09571.41280.87120.85291.21211.107
GMI 0.99861.06860.93920.96180.88760.99520.95270.9861.07551.0511
AQI 0.92030.95291.01721.01781.02751.16070.87960.90051.16540.9516
SGI 1.1550.99461.07541.11191.16961.33851.31051.1280.9590.9482
DEPI 0.7630.97081.11561.03291.01581.01351.01991.19530.88040.9361
SGAI 1.07461.10290.97720.99961.00640.97750.93590.97311.10651.0099
LVGI 0.8820.94560.79660.62061.05291.38840.73530.80950.99940.9964
TATA -0.0834-0.0665-0.0553-0.0827-0.0681-0.0585-0.0693-0.0419-0.0757-0.0833
M-score -2.76-2.41-2.52-2.81-2.62-2.13-2.62-2.66-2.60-2.82

DeVry Education Group Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.93121.15531.21211.4141.19150.7211.1070.95870.79630.9651
GMI 1.02381.04751.07551.08511.07481.06651.05111.051.0481.0481
AQI 1.11581.18491.16540.94941.04381.04690.95160.94980.95870.9394
SGI 1.02230.98420.9590.9420.94310.93540.94820.95210.95850.9726
DEPI 1.05760.99660.88040.85520.8890.92780.93610.94910.96320.9528
SGAI 1.03941.05591.10651.08421.05741.03821.00991.0161.02451.0181
LVGI 0.89130.90670.99941.02070.79450.77270.99641.00840.9220.9763
TATA -0.0637-0.0345-0.0757-0.0705-0.0422-0.0285-0.0833-0.0843-0.0682-0.0869
M-score -2.73-2.39-2.60-2.49-2.45-2.81-2.82-2.96-3.00-2.94
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