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DaVita HealthCare Partners Inc (NYSE:DVA)
Beneish M-Score
-2.57 (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.

DaVita HealthCare Partners Inc has a M-score of -2.57 suggests that the company is not a manipulator.

DVA' s 10-Year Beneish M-Score Range
Min: -3.52   Max: -0.76
Current: -2.57

-3.52
-0.76

During the past 13 years, the highest Beneish M-Score of DaVita HealthCare Partners Inc was -0.76. The lowest was -3.52. And the median was -2.61.


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 DaVita HealthCare Partners 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 * 0.9925+0.528 * 1.0344+0.404 * 0.9566+0.892 * 1.0834+0.115 * 1.0158
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0499+4.679 * -0.0325-0.327 * 0.9837
=-2.57

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,667 Mil.
Revenue was 3434.618 + 3287.965 + 3328.017 + 3251.824 = $13,302 Mil.
Gross Profit was 988.542 + 925.353 + 961.556 + 925.29 = $3,801 Mil.
Total Current Assets was $4,781 Mil.
Total Assets was $18,947 Mil.
Property, Plant and Equipment(Net PPE) was $2,565 Mil.
Depreciation, Depletion and Amortization(DDA) was $615 Mil.
Selling, General & Admin. Expense(SGA) was $1,373 Mil.
Total Current Liabilities was $2,334 Mil.
Long-Term Debt was $9,101 Mil.
Net Income was 170.477 + -110.617 + 208.02 + 184.122 = $452 Mil.
Non Operating Income was -150.009 + -0.533 + 0.229 + -1.246 = $-152 Mil.
Cash Flow from Operations was 31.442 + 410.089 + -69.991 + 847.9 = $1,219 Mil.
Accounts Receivable was $1,550 Mil.
Revenue was 3172.489 + 3042.776 + 3063.209 + 2999.586 = $12,278 Mil.
Gross Profit was 925.951 + 863.004 + 935.377 + 904.252 = $3,629 Mil.
Total Current Assets was $4,161 Mil.
Total Assets was $17,926 Mil.
Property, Plant and Equipment(Net PPE) was $2,291 Mil.
Depreciation, Depletion and Amortization(DDA) was $560 Mil.
Selling, General & Admin. Expense(SGA) was $1,207 Mil.
Total Current Liabilities was $2,608 Mil.
Long-Term Debt was $8,391 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)
=(1666.969 / 13302.424) / (1550.252 / 12278.06)
=0.12531318 / 0.12626197
=0.9925

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)
=(925.353 / 12278.06) / (988.542 / 13302.424)
=0.29553399 / 0.28571793
=1.0344

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 - (4780.921 + 2564.708) / 18946.818) / (1 - (4161.247 + 2290.844) / 17925.571)
=0.61230276 / 0.64006218
=0.9566

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
=13302.424 / 12278.06
=1.0834

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))
=(560.207 / (560.207 + 2290.844)) / (615.097 / (615.097 + 2564.708))
=0.1964914 / 0.19343859
=1.0158

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)
=(1372.635 / 13302.424) / (1206.662 / 12278.06)
=0.10318683 / 0.0982779
=1.0499

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)
=((9101.052 + 2334.29) / 18946.818) / ((8390.578 + 2608.148) / 17925.571)
=0.60354947 / 0.61357744
=0.9837

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
=(452.002 - -151.559 - 1219.44) / 18946.818
=-0.0325

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.

DaVita HealthCare Partners Inc has a M-score of -2.57 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.

DaVita HealthCare Partners Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.35240.66560.92271.07790.95280.93161.05270.980.72560.9446
GMI 1.0291.03370.96031.03451.00941.0570.92430.98031.0491.0551
AQI 1.25910.98160.95770.97230.97360.96961.09211.20850.95170.9663
SGI 1.36591.64121.07861.07521.07931.01811.08241.21611.4371.0876
DEPI 1.26250.81270.99160.9960.99891.02921.06071.01340.79851.0063
SGAI 1.06041.05641.00420.75280.9691.05661.10631.06870.920.9859
LVGI 1.15070.9230.9210.96320.91551.04920.98631.03010.96020.9412
TATA -0.0418-0.00060.0041-0.0346-0.0328-0.0447-0.0792-0.0348-0.0669-0.0357
M-score -1.93-2.21-2.48-2.44-2.58-2.74-2.74-2.41-2.65-2.58

DaVita HealthCare Partners Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.91670.83020.75060.72560.7770.88460.93310.94460.99930.9925
GMI 1.02341.05761.06481.0491.05391.0411.04451.05511.03691.0344
AQI 1.1921.1611.07130.95170.95670.92940.94320.96630.95540.9566
SGI 1.30591.39261.49871.4371.30671.21261.12091.08761.08881.0834
DEPI 0.93110.85490.79980.79850.86650.93230.99811.00631.01391.0158
SGAI 1.00460.93390.94040.920.9290.97150.96540.98591.03021.0499
LVGI 1.0481.04410.98320.96020.94650.96630.95970.94120.98480.9837
TATA -0.0435-0.04-0.0614-0.0669-0.0593-0.0499-0.0529-0.0298-0.0445-0.0325
M-score -2.42-2.40-2.50-2.65-2.66-2.63-2.66-2.55-2.61-2.57
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