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DeVry Education Group Inc (NYSE:DV)
Beneish M-Score
-2.47 (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 -2.47 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: -2.47

-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 * 1.1182+0.528 * 1.038+0.404 * 1.0485+0.892 * 0.9766+0.115 * 0.9406
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9926+4.679 * -0.0251-0.327 * 0.9727
=-2.47

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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 $85 Mil.
Selling, General & Admin. Expense(SGA) was $695 Mil.
Total Current Liabilities was $439 Mil.
Long-Term Debt was $0 Mil.
Net Income was 5.465 + 29.926 + 47.12 + 42.413 = $125 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 116.581 + -6.26 + 117.058 + -48.754 = $179 Mil.
Accounts Receivable was $170 Mil.
Revenue was 462.044 + 485.073 + 496.117 + 491.269 = $1,935 Mil.
Gross Profit was 215.713 + 229 + 253.486 + 248.272 = $946 Mil.
Total Current Assets was $736 Mil.
Total Assets was $2,135 Mil.
Property, Plant and Equipment(Net PPE) was $552 Mil.
Depreciation, Depletion and Amortization(DDA) was $82 Mil.
Selling, General & Admin. Expense(SGA) was $716 Mil.
Total Current Liabilities was $451 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)
=(185.956 / 1889.312) / (170.28 / 1934.503)
=0.09842525 / 0.08802261
=1.1182

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)
=(223.46 / 1934.503) / (196.336 / 1889.312)
=0.48925796 / 0.47134142
=1.038

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 - (718.114 + 530.336) / 2136.742) / (1 - (735.872 + 552.414) / 2134.627)
=0.41572263 / 0.39648191
=1.0485

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
=1889.312 / 1934.503
=0.9766

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))
=(82.322 / (82.322 + 552.414)) / (84.821 / (84.821 + 530.336))
=0.12969487 / 0.13788513
=0.9406

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)
=(694.548 / 1889.312) / (716.464 / 1934.503)
=0.36761954 / 0.37036076
=0.9926

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 + 439.4) / 2136.742) / ((0 + 451.265) / 2134.627)
=0.20564018 / 0.21140227
=0.9727

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
=(124.924 - 0 - 178.625) / 2136.742
=-0.0251

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 -2.47 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.10390.83211.09571.41280.87120.85290.84591.58440.9691.0567
GMI 0.93920.96180.88760.99520.95270.9861.07551.05111.04391.0258
AQI 1.01721.01781.02751.16070.87960.90051.16540.95160.95331.0328
SGI 1.07541.11191.16961.33851.31051.1280.9590.94820.97910.993
DEPI 1.11561.03291.01581.01351.01991.19530.88040.93611.08240.9616
SGAI 0.97720.99961.00640.97750.93590.97311.10651.00990.98280.9799
LVGI 0.79660.62061.05291.38840.73530.80950.99940.99640.93140.9786
TATA -0.0553-0.0827-0.0681-0.0585-0.0693-0.0419-0.0757-0.0833-0.0658-0.0305
M-score -2.52-2.81-2.62-2.13-2.62-2.66-2.94-2.38-2.80-2.54

DeVry Education Group Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.58441.15370.88010.96510.9690.92840.75730.92621.05671.1182
GMI 1.05111.051.0481.04811.04391.02531.02951.03441.02581.038
AQI 0.95160.94980.95870.93940.95330.93030.95641.03931.03281.0485
SGI 0.94820.95210.95850.97260.97910.99961.00111.00190.9930.9766
DEPI 0.93610.94910.96320.95281.08241.07691.08621.08390.96160.9406
SGAI 1.00991.0161.02451.01810.98280.950.93350.93450.97990.9926
LVGI 0.99641.00840.9220.97630.93140.89310.82820.93910.97860.9727
TATA -0.0833-0.0843-0.0682-0.0869-0.0658-0.0486-0.0452-0.0299-0.0305-0.0251
M-score -2.38-2.78-2.92-2.94-2.80-2.74-2.84-2.61-2.54-2.47
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