Switch to:
DeVry Education Group Inc (NYSE:DV)
Beneish M-Score
-2.76 (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 -2.81 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: -2.76

-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 -2.62.


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 * 1.2089+0.528 * 1.0251+0.404 * 1.1277+0.892 * 0.9652+0.115 * 0.9565
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9567+4.679 * -0.1119-0.327 * 1.1118
=-2.81

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $162 Mil.
Revenue was 471.701 + 474.221 + 456.203 + 441.413 = $1,844 Mil.
Gross Profit was 223.888 + 221.354 + 215.182 + 196.336 = $857 Mil.
Total Current Assets was $518 Mil.
Total Assets was $2,097 Mil.
Property, Plant and Equipment(Net PPE) was $522 Mil.
Depreciation, Depletion and Amortization(DDA) was $86 Mil.
Selling, General & Admin. Expense(SGA) was $654 Mil.
Total Current Liabilities was $362 Mil.
Long-Term Debt was $0 Mil.
Net Income was -9.969 + 51.925 + -50.587 + 5.465 = $-3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 11.88 + 143.17 + -40.062 + 116.581 = $232 Mil.
Accounts Receivable was $139 Mil.
Revenue was 473.189 + 489.83 + 484.88 + 462.044 = $1,910 Mil.
Gross Profit was 223.46 + 236.644 + 234.071 + 215.713 = $910 Mil.
Total Current Assets was $601 Mil.
Total Assets was $2,074 Mil.
Property, Plant and Equipment(Net PPE) was $546 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $708 Mil.
Total Current Liabilities was $322 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)
=(162.389 / 1843.538) / (139.163 / 1909.943)
=0.08808552 / 0.07286238
=1.2089

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)
=(909.888 / 1909.943) / (856.76 / 1843.538)
=0.47639537 / 0.46473683
=1.0251

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 - (518.105 + 521.763) / 2096.996) / (1 - (601.057 + 545.874) / 2074.193)
=0.50411541 / 0.44704712
=1.1277

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
=1843.538 / 1909.943
=0.9652

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))
=(85.008 / (85.008 + 545.874)) / (85.551 / (85.551 + 521.763))
=0.13474469 / 0.14086782
=0.9565

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)
=(654.049 / 1843.538) / (708.285 / 1909.943)
=0.35477923 / 0.37084091
=0.9567

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 + 361.836) / 2096.996) / ((0 + 321.909) / 2074.193)
=0.17254969 / 0.15519723
=1.1118

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
=(-3.166 - 0 - 231.569) / 2096.996
=-0.1119

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 -2.81 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 0.83211.09571.41280.87120.84431.03721.30540.9691.05671.2089
GMI 0.96180.88760.99520.95270.98741.08021.0451.04391.02581.0251
AQI 1.01781.02751.16070.87960.90051.16710.95030.95331.03281.1277
SGI 1.11191.16961.33851.31051.13950.95760.940.97910.9930.9652
DEPI 1.03291.01581.01351.01991.14010.8850.97641.00821.03240.9565
SGAI 0.99961.00640.96880.94430.98691.10690.99540.98280.97990.9567
LVGI 0.62061.05291.38840.73530.80951.00260.99330.93140.97861.1118
TATA -0.058-0.0718-0.0585-0.0693-0.0419-0.0759-0.0833-0.0658-0.0305-0.1119
M-score -2.69-2.64-2.13-2.62-2.66-2.76-2.64-2.80-2.54-2.81

DeVry Education Group Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.9690.92710.75440.92031.05671.11821.41331.1841.20891.011
GMI 1.04391.02711.03221.03911.02581.0381.03211.02631.02511.0155
AQI 0.95330.93030.95641.03931.03281.04851.17721.09451.12771.4346
SGI 0.97911.0011.0051.00830.9930.97660.9650.960.96520.9803
DEPI 1.00820.99650.99730.98871.03241.01021.05511.05690.95650.9681
SGAI 0.98280.95290.93750.93960.97990.99260.99590.97860.95670.9563
LVGI 0.93140.89310.82820.93910.97860.97271.13531.02061.11181.2026
TATA -0.0658-0.0486-0.0452-0.0299-0.0305-0.0251-0.0814-0.0835-0.1119-0.0844
M-score -2.80-2.74-2.85-2.62-2.54-2.46-2.46-2.68-2.81-2.76
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK