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Parexel International Corp (NAS:PRXL)
Beneish M-Score
-1.68 (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 -1.68 signals that the company is a manipulator.

PRXL' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -0.65
Current: -1.68

-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 * 0.5489+0.528 * 0.9242+0.404 * 3.8971+0.892 * 1.0734+0.115 * 0.2576
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0352+4.679 * -0.023-0.327 * 0.3346
=-1.68

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $435 Mil.
Revenue was 575.045 + 573.689 + 585.124 + 577.918 = $2,312 Mil.
Gross Profit was 171.948 + 172.877 + 182.267 + 169.226 = $696 Mil.
Total Current Assets was $0 Mil.
Total Assets was $1,769 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $82 Mil.
Selling, General & Admin. Expense(SGA) was $397 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $348 Mil.
Net Income was 38.76 + 37.142 + 40.072 + 34.739 = $151 Mil.
Non Operating Income was 1.067 + 1.641 + -2.601 + -2.364 = $-2 Mil.
Cash Flow from Operations was 0 + 18.884 + 98.502 + 76.362 = $194 Mil.
Accounts Receivable was $738 Mil.
Revenue was 574.236 + 529.064 + 526.858 + 523.451 = $2,154 Mil.
Gross Profit was 162.638 + 146.051 + 148.238 + 142.576 = $600 Mil.
Total Current Assets was $1,167 Mil.
Total Assets was $1,878 Mil.
Property, Plant and Equipment(Net PPE) was $229 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General & Admin. Expense(SGA) was $357 Mil.
Total Current Liabilities was $733 Mil.
Long-Term Debt was $369 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)
=(434.996 / 2311.776) / (738.318 / 2153.609)
=0.18816529 / 0.34282825
=0.5489

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)
=(172.877 / 2153.609) / (171.948 / 2311.776)
=0.27837133 / 0.30120479
=0.9242

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 - (0 + 0) / 1769.228) / (1 - (1166.776 + 229.169) / 1877.789)
=1 / 0.25660178
=3.8971

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
=2311.776 / 2153.609
=1.0734

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))
=(79.506 / (79.506 + 229.169)) / (82.377 / (82.377 + 0))
=0.25757188 / 1
=0.2576

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)
=(397.068 / 2311.776) / (357.309 / 2153.609)
=0.17175886 / 0.16591173
=1.0352

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)
=((347.5 + 0) / 1769.228) / ((369.054 + 733.315) / 1877.789)
=0.19641335 / 0.58705691
=0.3346

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
=(150.713 - -2.257 - 193.748) / 1769.228
=-0.023

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 -1.68 signals that the company is likely to 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 1.08060.99621.04270.93921.24180.95240.93461.01571.18920.9796
TATA -0.1374-0.008-0.04830.0509-0.0574-0.08730.0429-0.1104-0.0518-0.0799
M-score -3.19-2.23-2.39-1.74-2.70-3.37-1.83-2.21-2.94-2.84

Parexel International Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.78490.80680.79990.57091.02630.96370.34460.95770.57840.5489
GMI 1.06911.0731.05480.99410.96220.91640.89890.90620.90940.9242
AQI 0.90550.97280.96561.07881.01540.95780.96880.96991.00123.8971
SGI 1.19381.23961.26461.23341.19911.18631.14591.13551.12051.0734
DEPI 1.04681.09271.1040.98160.95330.92420.91920.95460.94450.2576
SGAI 0.88050.8610.90870.98111.02131.07551.0611.04921.05331.0352
LVGI 1.00661.0781.16191.18921.1311.01720.94710.97960.99480.3346
TATA -0.0939-0.0803-0.0882-0.0518-0.0047-0.0462-0.0535-0.0827-0.1091-0.023
M-score -2.92-2.78-2.85-2.94-2.37-2.65-3.27-2.85-3.33-1.68
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