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DeVry Education Group Inc (NYSE:DV)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

DV' s 10-Year Beneish M-Score Range
Min: -3.38   Max: -1.21
Current: -2.8

-3.38
-1.21

During the past 13 years, the highest Beneish M-Score of DeVry Education Group Inc was -1.21. The lowest was -3.38. 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 * 0.969+0.528 * 1.0439+0.404 * 0.9533+0.892 * 0.9791+0.115 * 1.0082
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9828+4.679 * -0.0658-0.327 * 0.9314
=-2.80

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $133 Mil.
Revenue was 485.073 + 496.117 + 491.269 + 450.913 = $1,923 Mil.
Gross Profit was 229 + 253.486 + 248.272 + 209.176 = $940 Mil.
Total Current Assets was $577 Mil.
Total Assets was $1,998 Mil.
Property, Plant and Equipment(Net PPE) was $556 Mil.
Depreciation, Depletion and Amortization(DDA) was $90 Mil.
Selling, General & Admin. Expense(SGA) was $728 Mil.
Total Current Liabilities was $317 Mil.
Long-Term Debt was $0 Mil.
Net Income was 37.484 + 55.525 + 48.155 + -7.132 = $134 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 2.352 + 150.088 + -28.099 + 141.22 = $266 Mil.
Accounts Receivable was $140 Mil.
Revenue was 479.964 + 503.825 + 500.666 + 479.92 = $1,964 Mil.
Gross Profit was 234.266 + 266.997 + 260.422 + 240.467 = $1,002 Mil.
Total Current Assets was $442 Mil.
Total Assets was $1,857 Mil.
Property, Plant and Equipment(Net PPE) was $572 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $756 Mil.
Total Current Liabilities was $316 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)
=(132.621 / 1923.372) / (139.778 / 1964.375)
=0.06895234 / 0.07115647
=0.969

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)
=(253.486 / 1964.375) / (229 / 1923.372)
=0.51016328 / 0.4886907
=1.0439

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 - (577.091 + 555.837) / 1997.636) / (1 - (442.164 + 571.657) / 1857.018)
=0.43286565 / 0.45405968
=0.9533

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
=1923.372 / 1964.375
=0.9791

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))
=(93.25 / (93.25 + 571.657)) / (89.817 / (89.817 + 555.837))
=0.14024518 / 0.13911011
=1.0082

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)
=(727.869 / 1923.372) / (756.384 / 1964.375)
=0.37843381 / 0.38505072
=0.9828

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 + 316.812) / 1997.636) / ((0 + 316.217) / 1857.018)
=0.15859346 / 0.17028214
=0.9314

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
=(134.032 - 0 - 265.561) / 1997.636
=-0.0658

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 -2.80 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 1.4011.10390.83211.09571.41280.87120.85291.21211.10570.969
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 -2.41-2.52-2.81-2.62-2.13-2.62-2.66-2.60-2.82-2.80

DeVry Education Group Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.15531.21211.4141.19150.7211.10570.95870.79630.96510.969
GMI 1.04751.07551.08511.07481.06651.05111.051.0481.04811.0439
AQI 1.18491.16540.94941.04381.04690.95160.94980.95870.93940.9533
SGI 0.98420.9590.9420.94310.93540.94820.95210.95850.97260.9791
DEPI 0.99660.88040.85520.8890.92780.93610.94910.96320.95281.0082
SGAI 1.05591.10651.08421.05741.03821.00991.0161.02451.01810.9828
LVGI 0.90670.99941.02070.79450.77270.99641.00840.9220.97630.9314
TATA -0.0345-0.0757-0.0705-0.0422-0.0285-0.0833-0.0843-0.0682-0.0869-0.0658
M-score -2.39-2.60-2.49-2.45-2.81-2.82-2.96-3.00-2.94-2.80
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