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DaVita HealthCare Partners Inc (NYSE:DVA)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

DVA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Max: -0.76
Current: -2.65

-3.51
-0.76

During the past 13 years, the highest Beneish M-Score of DaVita HealthCare Partners Inc was -0.76. The lowest was -3.51. And the median was -2.56.


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 * 1.0261+0.528 * 1.0011+0.404 * 0.9781+0.892 * 1.0793+0.115 * 1.0585
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0512+4.679 * -0.0518-0.327 * 1.0247
=-2.65

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,855 Mil.
Revenue was 3581.136 + 3533.589 + 3525.665 + 3434.618 = $14,075 Mil.
Gross Profit was 998.803 + 1018.458 + 1024.65 + 988.542 = $4,030 Mil.
Total Current Assets was $4,200 Mil.
Total Assets was $18,514 Mil.
Property, Plant and Equipment(Net PPE) was $2,911 Mil.
Depreciation, Depletion and Amortization(DDA) was $654 Mil.
Selling, General & Admin. Expense(SGA) was $1,497 Mil.
Total Current Liabilities was $2,444 Mil.
Long-Term Debt was $8,980 Mil.
Net Income was 97.434 + -6 + 215.872 + 170.477 = $478 Mil.
Non Operating Income was 2.976 + 4.631 + 2.484 + -150.009 = $-140 Mil.
Cash Flow from Operations was 429.002 + 436.673 + 678.996 + 31.442 = $1,576 Mil.
Accounts Receivable was $1,675 Mil.
Revenue was 3287.965 + 3328.017 + 3251.824 + 3172.489 = $13,040 Mil.
Gross Profit was 925.353 + 961.556 + 925.29 + 925.951 = $3,738 Mil.
Total Current Assets was $4,301 Mil.
Total Assets was $18,367 Mil.
Property, Plant and Equipment(Net PPE) was $2,501 Mil.
Depreciation, Depletion and Amortization(DDA) was $602 Mil.
Selling, General & Admin. Expense(SGA) was $1,319 Mil.
Total Current Liabilities was $2,680 Mil.
Long-Term Debt was $8,380 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)
=(1855.285 / 14075.008) / (1675.182 / 13040.295)
=0.13181413 / 0.12846197
=1.0261

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)
=(3738.15 / 13040.295) / (4030.453 / 14075.008)
=0.28666146 / 0.28635529
=1.0011

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 - (4199.56 + 2911.205) / 18514.198) / (1 - (4300.795 + 2500.596) / 18366.663)
=0.61592908 / 0.62968826
=0.9781

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
=14075.008 / 13040.295
=1.0793

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))
=(602.159 / (602.159 + 2500.596)) / (653.59 / (653.59 + 2911.205))
=0.19407236 / 0.18334575
=1.0585

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)
=(1496.763 / 14075.008) / (1319.246 / 13040.295)
=0.10634189 / 0.10116688
=1.0512

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)
=((8979.855 + 2443.618) / 18514.198) / ((8380.153 + 2679.516) / 18366.663)
=0.6170115 / 0.60215996
=1.0247

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
=(477.783 - -139.918 - 1576.113) / 18514.198
=-0.0518

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 -2.65 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

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.72560.7770.88460.93310.94460.99930.99251.06831.04911.0261
GMI 1.0491.05391.0411.04451.05511.03691.03441.01391.00061.0011
AQI 0.95170.95670.92940.94320.97690.95540.95660.95560.92760.9781
SGI 1.4371.30671.21261.12091.08761.08881.08341.08351.07711.0793
DEPI 0.79850.86650.93230.99811.00631.01391.01581.01531.03721.0585
SGAI 0.920.9290.97150.96540.98591.03021.04991.05791.06871.0512
LVGI 0.96020.94650.96630.95970.95080.98480.98371.00291.04431.0247
TATA -0.0669-0.0593-0.0499-0.0529-0.0304-0.0445-0.0325-0.0222-0.0618-0.0518
M-score -2.65-2.66-2.63-2.66-2.56-2.61-2.57-2.47-2.71-2.65
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