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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 10-Year Beneish M-Score Range
Min: -3.18   Max: -1.13
Current: -2.92

-3.18
-1.13

During the past 13 years, the highest Beneish M-Score of Parexel International Corp was -1.13. The lowest was -3.18. And the median was -2.52.


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 * 0.8971+0.528 * 0.9062+0.404 * 0.9699+0.892 * 1.1355+0.115 * 0.9546
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0492+4.679 * -0.0848-0.327 * 0.9769
=-2.92

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $723 Mil.
Revenue was 585.124 + 577.918 + 574.236 + 529.064 = $2,266 Mil.
Gross Profit was 182.267 + 169.226 + 162.638 + 146.051 = $660 Mil.
Total Current Assets was $1,122 Mil.
Total Assets was $1,834 Mil.
Property, Plant and Equipment(Net PPE) was $234 Mil.
Depreciation, Depletion and Amortization(DDA) was $81 Mil.
Selling, General & Admin. Expense(SGA) was $380 Mil.
Total Current Liabilities was $771 Mil.
Long-Term Debt was $334 Mil.
Net Income was 40.072 + 34.739 + 28.329 + 25.954 = $129 Mil.
Non Operating Income was -0.855 + -0.292 + -1.201 + -0.201 = $-3 Mil.
Cash Flow from Operations was 98.502 + 76.362 + 149.474 + -37.137 = $287 Mil.
Accounts Receivable was $709 Mil.
Revenue was 526.858 + 523.451 + 483.137 + 462.52 = $1,996 Mil.
Gross Profit was 148.238 + 142.576 + 120.743 + 115.349 = $527 Mil.
Total Current Assets was $1,077 Mil.
Total Assets was $1,780 Mil.
Property, Plant and Equipment(Net PPE) was $224 Mil.
Depreciation, Depletion and Amortization(DDA) was $73 Mil.
Selling, General & Admin. Expense(SGA) was $319 Mil.
Total Current Liabilities was $674 Mil.
Long-Term Debt was $424 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)
=(722.623 / 2266.342) / (709.445 / 1995.966)
=0.31884994 / 0.35543942
=0.8971

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)
=(169.226 / 1995.966) / (182.267 / 2266.342)
=0.26398546 / 0.29129849
=0.9062

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 - (1122.132 + 234.164) / 1834) / (1 - (1077.457 + 224.225) / 1779.624)
=0.2604711 / 0.26856347
=0.9699

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
=2266.342 / 1995.966
=1.1355

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))
=(73.186 / (73.186 + 224.225)) / (81.328 / (81.328 + 234.164))
=0.24607698 / 0.2577815
=0.9546

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)
=(379.8 / 2266.342) / (318.806 / 1995.966)
=0.16758283 / 0.15972517
=1.0492

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)
=((334.443 + 771.232) / 1834) / ((424.074 + 674.228) / 1779.624)
=0.60287623 / 0.61715396
=0.9769

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
=(129.094 - -2.549 - 287.201) / 1834
=-0.0848

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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 0.96151.08540.98891.16110.9540.91421.28640.86990.8860.8971
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 -3.18-2.25-2.39-1.73-2.69-2.93-1.92-2.98-2.65-2.92

Parexel International Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.92010.86990.78390.80950.81380.8861.0450.96060.99060.8971
GMI 1.13121.10991.06911.0731.05480.99410.96220.91640.89890.9062
AQI 0.98660.84610.90550.97280.96561.07881.01540.95780.96880.9699
SGI 1.08431.13771.19381.23961.26461.23341.19911.18631.14591.1355
DEPI 0.90451.0161.04681.09271.1040.98160.95330.92420.91920.9546
SGAI 0.92570.89380.88050.8610.90870.98111.02131.07551.0611.0492
LVGI 0.96231.01571.00661.0781.16191.18921.1311.01720.94420.9769
TATA -0.1015-0.1104-0.0939-0.0803-0.0882-0.0518-0.0047-0.0462-0.0546-0.0848
M-score -2.88-2.98-2.92-2.78-2.84-2.65-2.35-2.65-2.68-2.92
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