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Parexel International Corp (NAS:PRXL)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

PRXL' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -0.65
Current: -2.68

-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 -2.37.


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 * 0.9906+0.528 * 0.8989+0.404 * 0.9688+0.892 * 1.1459+0.115 * 0.9192
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.061+4.679 * -0.0546-0.327 * 0.9442
=-2.68

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $752 Mil.
Revenue was 577.918 + 574.236 + 529.064 + 526.858 = $2,208 Mil.
Gross Profit was 169.226 + 162.638 + 146.051 + 148.238 = $626 Mil.
Total Current Assets was $1,168 Mil.
Total Assets was $1,873 Mil.
Property, Plant and Equipment(Net PPE) was $228 Mil.
Depreciation, Depletion and Amortization(DDA) was $81 Mil.
Selling, General & Admin. Expense(SGA) was $366 Mil.
Total Current Liabilities was $771 Mil.
Long-Term Debt was $287 Mil.
Net Income was 34.739 + 28.329 + 25.954 + 30.041 = $119 Mil.
Non Operating Income was -0.292 + -1.201 + -0.201 + 2.212 = $1 Mil.
Cash Flow from Operations was 76.362 + 149.474 + -37.137 + 32.078 = $221 Mil.
Accounts Receivable was $662 Mil.
Revenue was 523.451 + 483.137 + 462.52 + 457.745 = $1,927 Mil.
Gross Profit was 142.576 + 120.743 + 115.349 + 112.5 = $491 Mil.
Total Current Assets was $1,037 Mil.
Total Assets was $1,694 Mil.
Property, Plant and Equipment(Net PPE) was $212 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General & Admin. Expense(SGA) was $301 Mil.
Total Current Liabilities was $626 Mil.
Long-Term Debt was $386 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)
=(751.869 / 2208.076) / (662.354 / 1926.853)
=0.34050866 / 0.34374911
=0.9906

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)
=(162.638 / 1926.853) / (169.226 / 2208.076)
=0.25490684 / 0.28357403
=0.8989

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 - (1167.681 + 228.207) / 1873.285) / (1 - (1036.529 + 211.82) / 1693.955)
=0.25484483 / 0.26305657
=0.9688

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
=2208.076 / 1926.853
=1.1459

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))
=(67.479 / (67.479 + 211.82)) / (81.369 / (81.369 + 228.207))
=0.24160129 / 0.26284014
=0.9192

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)
=(365.873 / 2208.076) / (300.931 / 1926.853)
=0.16569765 / 0.15617746
=1.061

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)
=((286.748 + 770.596) / 1873.285) / ((386.394 + 626.237) / 1693.955)
=0.56443307 / 0.59779097
=0.9442

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
=(119.063 - 0.518 - 220.777) / 1873.285
=-0.0546

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 -2.68 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 0.94850.96151.08540.98891.16110.9540.91421.28640.86990.886
GMI 0.98391.03071.00140.98970.96360.95570.97651.05931.10990.9941
AQI 1.21090.91461.121.36611.27061.37070.94180.94090.84611.0788
SGI 1.05931.02941.13171.20811.26671.07221.07141.06481.13771.2334
DEPI 0.91990.93171.17061.0351.11740.90990.97480.99031.0160.9816
SGAI 0.98560.97920.96880.95861.00311.02431.01760.96140.89380.9811
LVGI 0.94071.08060.99621.04270.93921.24180.95240.93461.01571.1892
TATA -0.0807-0.1374-0.008-0.04830.0509-0.0574-0.08730.0429-0.1104-0.0518
M-score -2.76-3.18-2.25-2.39-1.73-2.69-2.93-1.92-2.98-2.65

Parexel International Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.01250.92010.86990.78390.80950.81380.8861.0450.96060.9906
GMI 1.12741.13121.10991.06911.0731.05480.99410.96220.91640.8989
AQI 0.97070.98660.84610.90550.97280.96561.07881.01540.95780.9688
SGI 1.04861.08431.13771.19381.23961.26461.23341.19911.18631.1459
DEPI 0.92690.90451.0161.04681.09271.1040.98160.95330.92420.9192
SGAI 0.97180.92570.89380.88050.8610.90870.98111.02131.07551.061
LVGI 0.99450.96231.01571.00661.0781.16191.18921.1311.01720.9442
TATA -0.0988-0.1015-0.1104-0.0939-0.0803-0.0882-0.0518-0.0047-0.0462-0.0546
M-score -2.83-2.88-2.98-2.92-2.78-2.84-2.65-2.35-2.65-2.68
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