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DaVita HealthCare Partners Inc (NYSE:DVA)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

DVA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.44   Max: -1.05
Current: -2.71

-3.44
-1.05

During the past 13 years, the highest Beneish M-Score of DaVita HealthCare Partners Inc was -1.05. The lowest was -3.44. And the median was -2.57.


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 * 1.0491+0.528 * 1.0006+0.404 * 0.9276+0.892 * 1.0771+0.115 * 1.0372
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0687+4.679 * -0.0618-0.327 * 1.0443
=-2.71

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1,724 Mil.
Revenue was 3533.589 + 3525.665 + 3434.618 + 3287.965 = $13,782 Mil.
Gross Profit was 1018.458 + 1024.65 + 988.542 + 925.353 = $3,957 Mil.
Total Current Assets was $4,503 Mil.
Total Assets was $18,515 Mil.
Property, Plant and Equipment(Net PPE) was $2,789 Mil.
Depreciation, Depletion and Amortization(DDA) was $638 Mil.
Selling, General & Admin. Expense(SGA) was $1,452 Mil.
Total Current Liabilities was $2,399 Mil.
Long-Term Debt was $9,001 Mil.
Net Income was -6 + 215.872 + 170.477 + -110.617 = $270 Mil.
Non Operating Income was 4.631 + 2.484 + -150.009 + -0.533 = $-143 Mil.
Cash Flow from Operations was 436.673 + 678.996 + 31.442 + 410.089 = $1,557 Mil.
Accounts Receivable was $1,526 Mil.
Revenue was 3328.017 + 3251.824 + 3172.489 + 3042.776 = $12,795 Mil.
Gross Profit was 961.556 + 925.29 + 925.951 + 863.004 = $3,676 Mil.
Total Current Assets was $3,636 Mil.
Total Assets was $17,617 Mil.
Property, Plant and Equipment(Net PPE) was $2,469 Mil.
Depreciation, Depletion and Amortization(DDA) was $591 Mil.
Selling, General & Admin. Expense(SGA) was $1,262 Mil.
Total Current Liabilities was $2,089 Mil.
Long-Term Debt was $8,299 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)
=(1724.228 / 13781.837) / (1525.849 / 12795.106)
=0.12510872 / 0.11925255
=1.0491

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)
=(1024.65 / 12795.106) / (1018.458 / 13781.837)
=0.28728179 / 0.28711724
=1.0006

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 - (4503.28 + 2788.74) / 18514.875) / (1 - (3636.17 + 2469.099) / 17617.432)
=0.60615343 / 0.65345296
=0.9276

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
=13781.837 / 12795.106
=1.0771

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))
=(590.935 / (590.935 + 2469.099)) / (638.024 / (638.024 + 2788.74))
=0.19311387 / 0.18618849
=1.0372

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)
=(1452.135 / 13781.837) / (1261.506 / 12795.106)
=0.10536585 / 0.09859285
=1.0687

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)
=((9001.308 + 2399.138) / 18514.875) / ((8298.624 + 2088.651) / 17617.432)
=0.61574523 / 0.58960211
=1.0443

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
=(269.732 - -143.427 - 1557.2) / 18514.875
=-0.0618

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 -2.71 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.66560.92271.07790.95280.89871.05211.01640.72560.94461.0491
GMI 1.03370.96031.03451.00940.99520.92821.03491.05091.05511.0006
AQI 0.98160.95770.97230.97360.96961.09211.20850.95170.97690.9276
SGI 1.64121.07861.07521.07931.05541.0831.17241.4371.08761.0771
DEPI 0.81270.99160.9960.99891.02921.06071.01340.79851.00631.0372
SGAI 1.05641.00420.96940.75251.03211.10241.20970.8350.98591.0687
LVGI 0.9230.9210.96320.91551.04920.98631.03010.96020.95081.0443
TATA 0.0052-0.025-0.0267-0.0328-0.0447-0.0792-0.0348-0.0669-0.0364-0.0674
M-score -2.19-2.61-2.44-2.54-2.77-2.74-2.42-2.63-2.58-2.73

DaVita HealthCare Partners Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.75060.72560.7770.88460.93310.94460.99930.99251.06831.0491
GMI 1.06481.0491.05391.0411.04451.05511.03691.03441.01391.0006
AQI 1.07130.95170.95670.92940.94320.97690.95540.95660.95560.9276
SGI 1.49871.4371.30671.21261.12091.08761.08881.08341.08351.0771
DEPI 0.79980.79850.86650.93230.99811.00631.01391.01581.01531.0372
SGAI 0.94040.920.9290.97150.96540.98591.03021.04991.05791.0687
LVGI 0.98320.96020.94650.96630.95970.95080.98480.98371.00291.0443
TATA -0.0614-0.0669-0.0593-0.0499-0.0529-0.0304-0.0445-0.0325-0.0222-0.0618
M-score -2.50-2.65-2.66-2.63-2.66-2.56-2.61-2.57-2.47-2.71
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