Education Management Beneish M-Score Historical Data
The historical data trend for Education Management's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Education Management Beneish M-Score Chart
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Education Management Annual Data
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Trend |
Jun05 |
Jun06 |
Jun07 |
Jun08 |
Jun09 |
Jun10 |
Jun11 |
Jun12 |
Jun13 |
Jun14 |
| Beneish M-Score |
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-2.25 |
-2.68 |
-4.96 |
-3.28 |
-4.54 |
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Education Management Quarterly Data
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Sep09 |
Dec09 |
Mar10 |
Jun10 |
Sep10 |
Dec10 |
Mar11 |
Jun11 |
Sep11 |
Dec11 |
Mar12 |
Jun12 |
Sep12 |
Dec12 |
Mar13 |
Jun13 |
Sep13 |
Dec13 |
Mar14 |
Jun14 |
| Beneish M-Score |
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-3.28 |
-1.32 |
-1.60 |
-0.99 |
-4.54 |
Competitive Comparison of Education Management's Beneish M-Score
For the Education & Training Services subindustry, Education Management's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Education Management's Beneish M-Score Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Education Management's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Education Management's Beneish M-Score falls into.
Education Management Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Education Management 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 * 1.2334 | + | 0.528 * 1.0639 | + | 0.404 * 0.6553 | + | 0.892 * 0.9096 | + | 0.115 * 0.9105 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0649 | + | 4.679 * -0.088622 | - | 0.327 * 1.3994 |
| = | -3.02 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Jun14) TTM: | Last Year (Jun13) TTM: |
Total Receivables was $268 Mil.
Revenue was 503.481 + 595.202 + 593.673 + 580.38 = $2,273 Mil.
Gross Profit was 189.856 + 238.344 + 248.086 + 222.692 = $899 Mil.
Total Current Assets was $876 Mil.
Total Assets was $1,877 Mil.
Property, Plant and Equipment(Net PPE) was $429 Mil.
Depreciation, Depletion and Amortization(DDA) was $153 Mil.
Selling, General, & Admin. Expense(SGA) was $668 Mil.
Total Current Liabilities was $635 Mil.
Long-Term Debt & Capital Lease Obligation was $1,272 Mil.
Net Income was -187.845 + -467.646 + 1.089 + -9.514 = $-664 Mil.
Non Operating Income was -55.121 + -509.248 + -3.847 + 0 = $-568 Mil.
Cash Flow from Operations was -101.529 + 132.485 + -87.517 + 127.207 = $71 Mil.
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Total Receivables was $239 Mil.
Revenue was 595.236 + 638.903 + 654.895 + 609.564 = $2,499 Mil.
Gross Profit was 239.947 + 288.769 + 294.518 + 228.268 = $1,052 Mil.
Total Current Assets was $772 Mil.
Total Assets was $2,423 Mil.
Property, Plant and Equipment(Net PPE) was $526 Mil.
Depreciation, Depletion and Amortization(DDA) was $165 Mil.
Selling, General, & Admin. Expense(SGA) was $689 Mil.
Total Current Liabilities was $486 Mil.
Long-Term Debt & Capital Lease Obligation was $1,273 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (268.09 / 2272.736) | / | (238.953 / 2498.598) |
| = | 0.117959 | / | 0.095635 |
| | = | 1.2334 |
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) |
| = | (1051.502 / 2498.598) | / | (898.978 / 2272.736) |
| = | 0.420837 | / | 0.395549 |
| | = | 1.0639 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (875.966 + 429.457) / 1877.036) | / | (1 - (771.619 + 525.625) / 2423.356) |
| = | 0.30453 | / | 0.464691 |
| | = | 0.6553 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 2272.736 | / | 2498.598 |
| | = | 0.9096 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (164.712 / (164.712 + 525.625)) | / | (152.501 / (152.501 + 429.457)) |
| = | 0.238597 | / | 0.262048 |
| | = | 0.9105 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (667.507 / 2272.736) | / | (689.143 / 2498.598) |
| = | 0.293702 | / | 0.275812 |
| | = | 1.0649 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((1271.586 + 635.325) / 1877.036) | / | ((1273.164 + 486.098) / 2423.356) |
| = | 1.015916 | / | 0.725961 |
| | = | 1.3994 |
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 |
| = | (-663.916 - -568.216 | - | 70.646) | / | 1877.036 |
| | = | -0.088622 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Education Management has a M-score of -3.02 suggests that the company is unlikely to be a manipulator.
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