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GuruFocus has detected 7 Warning Signs with DeVry Education Group Inc $DV.
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DeVry Education Group Inc (NYSE:DV)
Beneish M-Score
-2.75 (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 -2.75 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: -2.75

-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 * 1.011+0.528 * 1.0155+0.404 * 1.4346+0.892 * 0.9803+0.115 * 1.0222
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9563+4.679 * -0.0844-0.327 * 1.2026
=-2.75

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $184 Mil.
Revenue was 449.892 + 471.701 + 474.221 + 456.203 = $1,852 Mil.
Gross Profit was 199.219 + 223.888 + 221.354 + 215.182 = $860 Mil.
Total Current Assets was $424 Mil.
Total Assets was $2,324 Mil.
Property, Plant and Equipment(Net PPE) was $514 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $651 Mil.
Total Current Liabilities was $445 Mil.
Long-Term Debt was $130 Mil.
Net Income was 25.152 + -9.969 + 51.925 + -50.587 = $17 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 97.768 + 11.88 + 143.17 + -40.062 = $213 Mil.
Accounts Receivable was $186 Mil.
Revenue was 441.413 + 473.189 + 489.83 + 484.88 = $1,889 Mil.
Gross Profit was 196.336 + 223.46 + 236.644 + 234.071 = $891 Mil.
Total Current Assets was $718 Mil.
Total Assets was $2,137 Mil.
Property, Plant and Equipment(Net PPE) was $530 Mil.
Depreciation, Depletion and Amortization(DDA) was $90 Mil.
Selling, General & Admin. Expense(SGA) was $695 Mil.
Total Current Liabilities was $439 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)
=(184.294 / 1852.017) / (185.956 / 1889.312)
=0.09950989 / 0.09842525
=1.011

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)
=(890.511 / 1889.312) / (859.643 / 1852.017)
=0.47134142 / 0.46416583
=1.0155

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 - (423.658 + 514.444) / 2324.356) / (1 - (718.114 + 530.336) / 2136.742)
=0.59640348 / 0.41572263
=1.4346

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
=1852.017 / 1889.312
=0.9803

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))
=(90.369 / (90.369 + 530.336)) / (85.441 / (85.441 + 514.444))
=0.1455909 / 0.14242897
=1.0222

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)
=(651.098 / 1852.017) / (694.548 / 1889.312)
=0.35156157 / 0.36761954
=0.9563

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)
=((130 + 444.84) / 2324.356) / ((0 + 439.4) / 2136.742)
=0.24731151 / 0.20564018
=1.2026

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
=(16.521 - 0 - 212.756) / 2324.356
=-0.0844

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 -2.75 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 local exchange's currency.

DeVry Education Group Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 0.83211.09571.41280.87120.85290.84591.58440.9691.05671.2089
GMI 0.96180.88760.99520.95270.9861.07551.05111.04391.02581.0251
AQI 1.01781.02751.16070.87960.90051.16540.95160.95331.05821.1006
SGI 1.11191.16961.33851.31051.1280.9590.94820.97910.9930.9652
DEPI 1.03291.01581.01351.01991.19530.88041.03430.91250.97771.0101
SGAI 0.99961.00640.97750.93590.97311.10651.00990.98280.97990.9567
LVGI 0.62061.05291.38840.73530.80950.99940.99640.93140.99511.0934
TATA -0.058-0.0718-0.0585-0.0693-0.0419-0.0757-0.0833-0.0658-0.031-0.1119
M-score -2.69-2.64-2.13-2.62-2.66-2.94-2.37-2.82-2.54-2.81

DeVry Education Group Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.9690.92840.75730.92621.05671.11821.41331.1841.20891.011
GMI 1.04391.02531.02951.03441.02581.0381.03211.02631.02511.0155
AQI 0.95330.93030.95641.03931.05821.04851.17721.09451.10061.4346
SGI 0.97910.99961.00111.00190.9930.97660.9650.960.96520.9803
DEPI 0.91250.90680.92460.94590.97770.95670.97190.92351.01011.0222
SGAI 0.98280.950.93350.93450.97990.99260.99590.97860.95670.9563
LVGI 0.93140.89310.82820.93910.99510.97271.13531.02061.09341.2026
TATA -0.0658-0.0486-0.0452-0.0299-0.031-0.0251-0.0814-0.0835-0.1119-0.0844
M-score -2.82-2.76-2.86-2.63-2.54-2.46-2.47-2.70-2.81-2.75
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