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DeVry Education Group Inc (NYSE:DV)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

DV' s 10-Year Beneish M-Score Range
Min: -3.38   Max: -1.21
Current: -2.74

-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 * 0.9306+0.528 * 1.0244+0.404 * 0.9303+0.892 * 0.9972+0.115 * 1.0093
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9488+4.679 * -0.0486-0.327 * 0.8931
=-2.74

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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 $89 Mil.
Selling, General & Admin. Expense(SGA) was $716 Mil.
Total Current Liabilities was $451 Mil.
Long-Term Debt was $0 Mil.
Net Income was 20.44 + 37.484 + 55.525 + 48.155 = $162 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 141.063 + 2.352 + 150.088 + -28.099 = $265 Mil.
Accounts Receivable was $183 Mil.
Revenue was 450.913 + 479.964 + 503.825 + 505.244 = $1,940 Mil.
Gross Profit was 209.176 + 234.266 + 266.997 + 261.843 = $972 Mil.
Total Current Assets was $592 Mil.
Total Assets was $2,027 Mil.
Property, Plant and Equipment(Net PPE) was $570 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $757 Mil.
Total Current Liabilities was $480 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)
=(170.28 / 1934.503) / (183.487 / 1939.946)
=0.08802261 / 0.09458356
=0.9306

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)
=(229 / 1939.946) / (215.713 / 1934.503)
=0.50119024 / 0.48925796
=1.0244

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 - (735.872 + 552.414) / 2134.627) / (1 - (592.476 + 570.493) / 2026.807)
=0.39648191 / 0.42620634
=0.9303

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
=1934.503 / 1939.946
=0.9972

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))
=(93.324 / (93.324 + 570.493)) / (89.4 / (89.4 + 552.414))
=0.14058694 / 0.13929269
=1.0093

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)
=(716.464 / 1934.503) / (757.234 / 1939.946)
=0.37036076 / 0.39033767
=0.9488

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 + 451.265) / 2134.627) / ((0 + 479.747) / 2026.807)
=0.21140227 / 0.23670088
=0.8931

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
=(161.604 - 0 - 265.404) / 2134.627
=-0.0486

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 -2.74 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 1.39991.09990.83581.09571.41280.87120.84431.03721.30540.969
GMI 1.05570.95030.9680.88760.99520.95270.98741.08021.0451.0439
AQI 0.95291.01721.01781.02751.16070.87960.90051.16710.95030.9533
SGI 0.99541.07931.10691.16961.33851.31051.13950.95760.940.9791
DEPI 0.97081.11561.03291.01581.01351.01991.14010.8850.97641.0082
SGAI 1.09420.9971.00411.00640.96880.94430.98691.10690.99540.9828
LVGI 0.94560.79660.62061.05291.38840.73530.80951.00260.99330.9314
TATA -0.0549-0.0431-0.0827-0.0681-0.0585-0.0693-0.0419-0.0759-0.0833-0.0658
M-score -2.36-2.46-2.81-2.62-2.13-2.62-2.66-2.76-2.64-2.80

DeVry Education Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.03721.33711.01550.71931.30051.01830.89120.97750.97270.9306
GMI 1.08021.09181.08271.07461.04781.04311.03921.03921.04121.0244
AQI 1.16710.94941.04381.04690.95030.94980.95870.93940.95330.9303
SGI 0.95760.9420.94520.93760.94350.94470.94660.96020.97550.9972
DEPI 0.8850.85250.87760.91340.96420.98851.01571.00421.02091.0093
SGAI 1.10691.08851.06351.04480.99960.99961.00530.99880.97860.9488
LVGI 1.00261.02070.79450.77270.99331.00840.9220.97630.93140.8931
TATA -0.0759-0.0705-0.0422-0.0285-0.0833-0.0843-0.0682-0.0869-0.0658-0.0486
M-score -2.76-2.56-2.61-2.81-2.64-2.91-2.92-2.94-2.80-2.74
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