Switch to:
DeVry Inc (NYSE:DV)
Beneish M-Score
-3.00 (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 Inc has a M-score of -3.00 suggests that the company is not a manipulator.

DV' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -1.21
Current: -3

-3.36
-1.21

During the past 13 years, the highest Beneish M-Score of DeVry 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 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 * 0.7993+0.528 * 1.0453+0.404 * 0.9587+0.892 * 0.9549+0.115 * 0.9632
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0201+4.679 * -0.0682-0.327 * 0.922
=-3.00

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $125 Mil.
Revenue was 491.269 + 450.913 + 467.643 + 508.752 = $1,919 Mil.
Gross Profit was 248.272 + 209.176 + 232.386 + 267.732 = $958 Mil.
Total Current Assets was $476 Mil.
Total Assets was $1,889 Mil.
Property, Plant and Equipment(Net PPE) was $558 Mil.
Depreciation, Depletion and Amortization(DDA) was $92 Mil.
Selling, General & Admin. Expense(SGA) was $750 Mil.
Total Current Liabilities was $307 Mil.
Long-Term Debt was $0 Mil.
Net Income was 48.155 + -7.132 + -32.31 + 56.821 = $66 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -28.099 + 141.22 + -20.918 + 102.218 = $194 Mil.
Accounts Receivable was $163 Mil.
Revenue was 500.666 + 479.92 + 487.889 + 540.807 = $2,009 Mil.
Gross Profit was 260.422 + 240.467 + 250.73 + 296.612 = $1,048 Mil.
Total Current Assets was $451 Mil.
Total Assets was $1,914 Mil.
Property, Plant and Equipment(Net PPE) was $559 Mil.
Depreciation, Depletion and Amortization(DDA) was $88 Mil.
Selling, General & Admin. Expense(SGA) was $770 Mil.
Total Current Liabilities was $338 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)
=(124.781 / 1918.577) / (163.485 / 2009.282)
=0.06503831 / 0.08136489
=0.7993

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)
=(209.176 / 2009.282) / (248.272 / 1918.577)
=0.52169432 / 0.4991022
=1.0453

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 - (475.745 + 558.043) / 1889.113) / (1 - (450.771 + 559.357) / 1914.066)
=0.4527654 / 0.47226062
=0.9587

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
=1918.577 / 2009.282
=0.9549

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))
=(88.004 / (88.004 + 559.357)) / (91.698 / (91.698 + 558.043))
=0.1359427 / 0.14113008
=0.9632

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)
=(749.733 / 1918.577) / (769.698 / 2009.282)
=0.39077556 / 0.38307117
=1.0201

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 + 307.152) / 1889.113) / ((0 + 337.528) / 1914.066)
=0.16259059 / 0.17634084
=0.922

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
=(65.534 - 0 - 194.421) / 1889.113
=-0.0682

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 Inc has a M-score of -3.00 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 Inc Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 1.0041.4011.10390.83211.09571.41280.87120.85291.21211.107
GMI 0.99861.06860.93920.96180.88760.99520.95270.9861.07551.0511
AQI 0.92030.95291.01721.01781.02751.16070.87960.90051.16540.9516
SGI 1.1550.99461.07541.11191.16961.33851.31051.1280.9590.9482
DEPI 0.7630.97081.11561.03291.01581.01351.01991.19530.88040.9361
SGAI 1.07461.10290.97720.99961.00640.97750.93590.97311.10651.0099
LVGI 0.8820.94560.79660.62061.05291.38840.73530.80950.99940.9964
TATA -0.0834-0.0665-0.0553-0.0827-0.0681-0.0585-0.0693-0.0419-0.0757-0.0833
M-score -2.76-2.41-2.52-2.81-2.62-2.13-2.62-2.66-2.60-2.82

DeVry Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.87240.93121.15531.21211.4141.19150.81681.11110.96230.7993
GMI 1.00141.02381.04751.07551.08511.07481.06841.04841.04721.0453
AQI 1.15861.11581.18491.16540.94941.04381.04640.95160.94980.9587
SGI 1.0761.02230.98420.9590.9420.94310.93770.94460.94850.9549
DEPI 1.17951.05760.99660.88040.85520.8890.90920.93610.94910.9632
SGAI 1.00761.03941.05591.10651.08421.05741.03941.00561.01161.0201
LVGI 0.85140.89130.90670.99941.02070.79450.7730.99641.00840.922
TATA -0.0419-0.0637-0.0345-0.0757-0.0705-0.0422-0.0285-0.0833-0.0843-0.0682
M-score -2.59-2.73-2.39-2.60-2.49-2.45-2.73-2.82-2.96-3.00
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)
Free 7-day Trial
FEEDBACK
Hide