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Parexel International Corp (NAS:PRXL)
Beneish M-Score
-3.09 (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.

Parexel International Corp has a M-score of -3.09 suggests that the company is not a manipulator.

PRXL' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -0.65
Current: -3.09

-3.47
-0.65

During the past 13 years, the highest Beneish M-Score of Parexel International Corp was -0.65. The lowest was -3.47. And the median was -2.38.


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 Parexel International Corp 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 * 0.8554+0.528 * 0.9094+0.404 * 1.0012+0.892 * 1.1205+0.115 * 0.9445
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0533+4.679 * -0.1122-0.327 * 0.9922
=-3.09

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $720 Mil.
Revenue was 573.689 + 585.124 + 577.918 + 574.236 = $2,311 Mil.
Gross Profit was 172.877 + 182.267 + 169.226 + 162.638 = $687 Mil.
Total Current Assets was $1,126 Mil.
Total Assets was $1,819 Mil.
Property, Plant and Equipment(Net PPE) was $224 Mil.
Depreciation, Depletion and Amortization(DDA) was $82 Mil.
Selling, General & Admin. Expense(SGA) was $394 Mil.
Total Current Liabilities was $734 Mil.
Long-Term Debt was $367 Mil.
Net Income was 37.142 + 40.072 + 34.739 + 28.329 = $140 Mil.
Non Operating Income was 3.373 + -0.855 + -0.292 + -1.201 = $1 Mil.
Cash Flow from Operations was 18.884 + 98.502 + 76.362 + 149.474 = $343 Mil.
Accounts Receivable was $751 Mil.
Revenue was 529.064 + 526.858 + 523.451 + 483.137 = $2,063 Mil.
Gross Profit was 146.051 + 148.238 + 142.576 + 120.743 = $558 Mil.
Total Current Assets was $1,176 Mil.
Total Assets was $1,886 Mil.
Property, Plant and Equipment(Net PPE) was $225 Mil.
Depreciation, Depletion and Amortization(DDA) was $77 Mil.
Selling, General & Admin. Expense(SGA) was $334 Mil.
Total Current Liabilities was $659 Mil.
Long-Term Debt was $491 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)
=(719.974 / 2310.967) / (751.227 / 2062.51)
=0.31154664 / 0.36422951
=0.8554

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)
=(182.267 / 2062.51) / (172.877 / 2310.967)
=0.27035408 / 0.29728161
=0.9094

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 - (1126.21 + 224.154) / 1818.601) / (1 - (1175.922 + 224.887) / 1885.735)
=0.25747099 / 0.2571549
=1.0012

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
=2310.967 / 2062.51
=1.1205

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))
=(76.565 / (76.565 + 224.887)) / (82.454 / (82.454 + 224.154))
=0.25398737 / 0.26892319
=0.9445

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)
=(393.801 / 2310.967) / (333.69 / 2062.51)
=0.17040529 / 0.16178831
=1.0533

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)
=((367.139 + 733.875) / 1818.601) / ((491.349 + 659.248) / 1885.735)
=0.60541812 / 0.61015837
=0.9922

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
=(140.282 - 1.025 - 343.222) / 1818.601
=-0.1122

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.

Parexel International Corp has a M-score of -3.09 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.

Parexel International Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 0.95361.10340.98891.15570.94350.43711.39131.70890.57090.9577
GMI 1.03071.00140.98970.96360.95570.97651.05931.10990.99410.9062
AQI 0.91461.121.36611.27061.37070.94180.94090.84611.07880.9699
SGI 1.02941.13171.20811.26671.07221.07141.06481.13771.23341.1355
DEPI 0.93171.17061.0351.11740.90990.97480.99031.0160.98160.9546
SGAI 0.97920.96880.95861.00311.02431.01760.96140.89380.98111.0492
LVGI 1.08060.99621.04270.93921.24180.95240.93461.01571.18920.9769
TATA -0.1374-0.008-0.04830.0509-0.0574-0.08730.0429-0.1104-0.0518-0.0848
M-score -3.19-2.23-2.39-1.74-2.70-3.37-1.83-2.21-2.94-2.86

Parexel International Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.70890.78490.80680.79990.57091.02630.96371.00780.95770.8554
GMI 1.10991.06911.0731.05480.99410.96220.91640.89890.90620.9094
AQI 0.84610.90550.97280.96561.07881.01540.95780.96880.96991.0012
SGI 1.13771.19381.23961.26461.23341.19911.18631.14591.13551.1205
DEPI 1.0161.04681.09271.1040.98160.95330.92420.91920.95460.9445
SGAI 0.89380.88050.8610.90870.98111.02131.07551.0611.04921.0533
LVGI 1.01571.00661.0781.16191.18921.1311.01720.94420.97690.9922
TATA -0.1104-0.0939-0.0803-0.0882-0.0518-0.0047-0.0462-0.0546-0.0848-0.1122
M-score -2.21-2.92-2.78-2.85-2.94-2.37-2.65-2.67-2.86-3.09
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