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Parexel International Corp (NAS:PRXL)
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.

Parexel International Corp has a M-score of -2.71 suggests that the company is not a manipulator.

PRXL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.49   Max: -0.7
Current: -2.71

-3.49
-0.7

During the past 13 years, the highest Beneish M-Score of Parexel International Corp was -0.70. The lowest was -3.49. And the median was -2.59.


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 * 0.7596+0.528 * 1.0179+0.404 * 1.1182+0.892 * 1.0414+0.115 * 1.0433
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9132+4.679 * -0.0211-0.327 * 1.0696
=-2.71

* 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 $558 Mil.
Revenue was 611.4 + 604.2 + 585.2 + 605.174 = $2,406 Mil.
Gross Profit was 189.3 + 186 + 168.9 + 162.928 = $707 Mil.
Total Current Assets was $1,238 Mil.
Total Assets was $2,093 Mil.
Property, Plant and Equipment(Net PPE) was $257 Mil.
Depreciation, Depletion and Amortization(DDA) was $94 Mil.
Selling, General & Admin. Expense(SGA) was $370 Mil.
Total Current Liabilities was $758 Mil.
Long-Term Debt was $555 Mil.
Net Income was 47.9 + 39.4 + 24.9 + 34.221 = $146 Mil.
Non Operating Income was -0.3 + -0.1 + 1.8 + -0.213 = $1 Mil.
Cash Flow from Operations was 44.4 + 31.5 + 54.2 + 59.243 = $189 Mil.
Accounts Receivable was $706 Mil.
Revenue was 576.4 + 575 + 573.7 + 585.124 = $2,310 Mil.
Gross Profit was 164 + 172 + 172.9 + 182.267 = $691 Mil.
Total Current Assets was $1,125 Mil.
Total Assets was $1,799 Mil.
Property, Plant and Equipment(Net PPE) was $214 Mil.
Depreciation, Depletion and Amortization(DDA) was $83 Mil.
Selling, General & Admin. Expense(SGA) was $389 Mil.
Total Current Liabilities was $678 Mil.
Long-Term Debt was $377 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)
=(558.3 / 2405.974) / (705.741 / 2310.224)
=0.2320474 / 0.30548596
=0.7596

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)
=(691.167 / 2310.224) / (707.128 / 2405.974)
=0.29917748 / 0.29390509
=1.0179

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 - (1237.5 + 256.6) / 2092.6) / (1 - (1125.019 + 213.704) / 1798.809)
=0.28600784 / 0.25577257
=1.1182

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
=2405.974 / 2310.224
=1.0414

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))
=(83.297 / (83.297 + 213.704)) / (94.339 / (94.339 + 256.6))
=0.28046034 / 0.2688188
=1.0433

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)
=(370.192 / 2405.974) / (389.232 / 2310.224)
=0.15386367 / 0.16848236
=0.9132

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)
=((554.6 + 758.1) / 2092.6) / ((377.049 + 677.89) / 1798.809)
=0.62730574 / 0.58646527
=1.0696

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
=(146.421 - 1.187 - 189.343) / 2092.6
=-0.0211

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 -2.71 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.

Parexel International Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 0.98891.15570.94350.43711.39131.70890.57090.95770.90111.0544
GMI 0.98970.96360.95570.97651.05931.10990.99410.90621.01040.9529
AQI 1.36611.27061.37070.94180.94090.84611.07880.96991.15643.3199
SGI 1.20811.26671.07221.07141.06481.13771.23341.13551.02821.0422
DEPI 1.0351.11740.90990.97480.99031.0160.98160.95460.98980.2604
SGAI 0.95861.00311.02431.01760.96140.89380.98111.04920.94031.0042
LVGI 1.04270.93921.24180.95240.93461.01571.18920.97690.93820.4255
TATA -0.04830.0509-0.0574-0.08730.0429-0.1104-0.0518-0.0848-0.00930.0813
M-score -2.39-1.74-2.70-3.37-1.83-2.21-2.94-2.86-2.49-1.00

Parexel International Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.00780.95770.85540.81930.89710.90110.58680.7340.75961.0544
GMI 0.89890.90620.90940.92410.94781.01041.04251.04751.01790.9529
AQI 0.96880.96991.00121.04041.00361.15641.18581.09951.11823.3199
SGI 1.14591.13551.12051.07341.04631.02821.01331.02561.04141.0422
DEPI 0.91920.95460.94430.93080.93720.98981.01671.02791.04330.2604
SGAI 1.06071.04921.05351.03551.0170.94030.90970.88790.91321.0042
LVGI 0.94420.97690.99220.9961.0390.93821.0771.09981.06960.4255
TATA -0.0546-0.0848-0.1121-0.0722-0.0279-0.0093-0.0352-0.0063-0.02110.0142
M-score -2.67-2.86-3.09-2.96-2.71-2.49-2.92-2.68-2.71-1.31
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