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DeVry Education Group Inc (NYSE:DV)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

DV' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -1.21
Current: -2.85

-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 -2.66.


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 * 0.7573+0.528 * 1.0295+0.404 * 0.9564+0.892 * 1.0011+0.115 * 1.0103
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9335+4.679 * -0.0452-0.327 * 0.8282
=-2.85

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 $88 Mil.
Selling, General & Admin. Expense(SGA) was $706 Mil.
Total Current Liabilities was $265 Mil.
Long-Term Debt was $0 Mil.
Net Income was 42.413 + 20.44 + 37.484 + 55.525 = $156 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -48.754 + 141.063 + 2.352 + 150.088 = $245 Mil.
Accounts Receivable was $118 Mil.
Revenue was 491.269 + 450.913 + 479.964 + 503.825 = $1,926 Mil.
Gross Profit was 248.272 + 209.176 + 234.266 + 266.997 = $959 Mil.
Total Current Assets was $476 Mil.
Total Assets was $1,889 Mil.
Property, Plant and Equipment(Net PPE) was $558 Mil.
Depreciation, Depletion and Amortization(DDA) was $92 Mil.
Selling, General & Admin. Expense(SGA) was $756 Mil.
Total Current Liabilities was $307 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)
=(89.318 / 1928.114) / (117.812 / 1925.971)
=0.04632402 / 0.06117018
=0.7573

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)
=(215.713 / 1925.971) / (234.071 / 1928.114)
=0.4977806 / 0.48351394
=1.0295

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 - (572.779 + 542.989) / 1967.866) / (1 - (475.745 + 558.043) / 1889.113)
=0.43300611 / 0.4527654
=0.9564

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
=1928.114 / 1925.971
=1.0011

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))
=(91.698 / (91.698 + 558.043)) / (88.163 / (88.163 + 542.989))
=0.14113008 / 0.13968584
=1.0103

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)
=(706.331 / 1928.114) / (755.826 / 1925.971)
=0.36633259 / 0.39243893
=0.9335

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 + 264.98) / 1967.866) / ((0 + 307.152) / 1889.113)
=0.13465348 / 0.16259059
=0.8282

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
=(155.862 - 0 - 244.749) / 1967.866
=-0.0452

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 -2.85 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 1.4011.10390.83211.09571.41280.87120.85290.84591.58440.969
GMI 1.06860.93920.96180.88760.99520.95270.9861.07551.05111.0439
AQI 0.95291.01721.01781.02751.16070.87960.90051.16540.95160.9533
SGI 0.99461.07541.11191.16961.33851.31051.1280.9590.94820.9791
DEPI 0.97081.11561.03291.01581.01351.01991.19530.88040.93611.0082
SGAI 1.10290.97720.99961.00640.97750.93590.97311.10651.00990.9828
LVGI 0.94560.79660.62061.05291.38840.73530.80950.99940.99640.9314
TATA -0.0665-0.0553-0.0827-0.0681-0.0585-0.0693-0.0419-0.0757-0.0833-0.0658
M-score -2.41-2.52-2.81-2.62-2.13-2.62-2.66-2.94-2.38-2.80

DeVry Education Group Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.17111.01780.7211.58441.15370.88010.96510.9690.92840.7573
GMI 1.08511.07481.06651.05111.051.0481.04811.04391.02531.0295
AQI 0.94941.04381.04690.95160.94980.95870.93940.95330.93030.9564
SGI 0.9420.94310.93540.94820.95210.95850.97260.97910.99961.0011
DEPI 0.85520.8890.92780.93610.94910.96320.95281.00821.00271.0103
SGAI 1.08421.05741.03821.00991.0161.02451.01810.98280.950.9335
LVGI 1.02070.79450.77270.99641.00840.9220.97630.93140.89310.8282
TATA -0.0705-0.0422-0.0285-0.0833-0.0843-0.0682-0.0869-0.0658-0.0486-0.0452
M-score -2.72-2.61-2.81-2.38-2.78-2.92-2.94-2.80-2.74-2.85
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