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Parexel International Corp (NAS:PRXL)
Beneish M-Score
-2.92 (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 -2.92 suggests that the company is not a manipulator.

PRXL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.47   Max: -0.65
Current: -2.92

-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 -2.51.


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 * 0.5868+0.528 * 1.0423+0.404 * 1.1858+0.892 * 1.0133+0.115 * 1.0167
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9099+4.679 * -0.0352-0.327 * 1.077
=-2.92

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $428 Mil.
Revenue was 585.2 + 605.125 + 576.415 + 575 = $2,342 Mil.
Gross Profit was 168.9 + 162.924 + 164.079 + 172 = $668 Mil.
Total Current Assets was $1,005 Mil.
Total Assets was $1,800 Mil.
Property, Plant and Equipment(Net PPE) was $245 Mil.
Depreciation, Depletion and Amortization(DDA) was $88 Mil.
Selling, General & Admin. Expense(SGA) was $363 Mil.
Total Current Liabilities was $704 Mil.
Long-Term Debt was $470 Mil.
Net Income was 24.9 + 34.178 + 37.741 + 38.8 = $136 Mil.
Non Operating Income was 1.8 + -0.207 + 1.314 + 3 = $6 Mil.
Cash Flow from Operations was 54.2 + 59.241 + 0.202 + 79.5 = $193 Mil.
Accounts Receivable was $720 Mil.
Revenue was 573.7 + 585.124 + 577.918 + 574.236 = $2,311 Mil.
Gross Profit was 172.9 + 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.



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)
=(428.1 / 2341.74) / (719.974 / 2310.978)
=0.18281278 / 0.31154516
=0.5868

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)
=(162.924 / 2310.978) / (168.9 / 2341.74)
=0.29729015 / 0.28521655
=1.0423

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 - (1005.2 + 245.3) / 1800.1) / (1 - (1126.21 + 224.154) / 1818.601)
=0.30531637 / 0.25747099
=1.1858

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
=2341.74 / 2310.978
=1.0133

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))
=(82.47 / (82.47 + 224.154)) / (88.239 / (88.239 + 245.3))
=0.26896133 / 0.26455377
=1.0167

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)
=(363.184 / 2341.74) / (393.888 / 2310.978)
=0.15509151 / 0.17044212
=0.9099

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)
=((470.2 + 703.5) / 1800.1) / ((367.139 + 733.875) / 1818.601)
=0.65201933 / 0.60541812
=1.077

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
=(135.619 - 5.907 - 193.143) / 1800.1
=-0.0352

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 -2.92 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.10340.98891.15570.94350.43711.39131.70890.57090.95770.9011
GMI 1.00140.98970.96360.95570.97651.05931.10990.99410.90621.0104
AQI 1.121.36611.27061.37070.94180.94090.84611.07880.96991.1564
SGI 1.13171.20811.26671.07221.07141.06481.13771.23341.13551.0282
DEPI 1.17061.0351.11740.90990.97480.99031.0160.98160.95460.9898
SGAI 0.96880.95861.00311.02431.01760.96140.89380.98111.04920.9403
LVGI 0.99621.04270.93921.24180.95240.93461.01571.18920.97690.9382
TATA -0.008-0.04830.0509-0.0574-0.08730.0429-0.1104-0.0518-0.0848-0.0093
M-score -2.23-2.39-1.74-2.70-3.37-1.83-2.21-2.94-2.86-2.49

Parexel International Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.02630.96371.00780.95770.85540.81930.89710.90110.58680.734
GMI 0.96220.91640.89890.90620.90940.92410.94771.01031.04231.0474
AQI 1.01540.95780.96880.96991.00121.04041.00361.15641.18581.0995
SGI 1.19911.18631.14591.13551.12051.07341.04631.02821.01331.0256
DEPI 0.95330.92420.91920.95460.94430.93080.93740.98981.01671.0279
SGAI 1.02131.07551.06071.04921.05351.03551.01660.94050.90990.8882
LVGI 1.1311.01720.94420.97690.99220.9961.0390.93821.0771.0998
TATA -0.0047-0.0462-0.0546-0.0848-0.1121-0.0722-0.0279-0.0093-0.0352-0.0064
M-score -2.37-2.65-2.67-2.86-3.09-2.96-2.71-2.49-2.92-2.68
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