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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: -3.37   Max: -1.19
Current: -2.71

-3.37
-1.19

During the past 13 years, the highest Beneish M-Score of Parexel International Corp was -1.19. The lowest was -3.37. And the median was -2.49.


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 * 1.0553+0.528 * 0.953+0.404 * 0.9712+0.892 * 1.0412+0.115 * 0.957
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0078+4.679 * -0.0522-0.327 * 1.089
=-2.71

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $506 Mil.
Revenue was 625.5 + 611.4 + 604.2 + 585.2 = $2,426 Mil.
Gross Profit was 189.8 + 189.3 + 186 + 168.9 = $734 Mil.
Total Current Assets was $1,181 Mil.
Total Assets was $2,036 Mil.
Property, Plant and Equipment(Net PPE) was $259 Mil.
Depreciation, Depletion and Amortization(DDA) was $97 Mil.
Selling, General & Admin. Expense(SGA) was $385 Mil.
Total Current Liabilities was $769 Mil.
Long-Term Debt was $485 Mil.
Net Income was 42.7 + 47.9 + 39.4 + 24.9 = $155 Mil.
Non Operating Income was -1.6 + -0.3 + -0.1 + 1.8 = $-0 Mil.
Cash Flow from Operations was 131.2 + 44.4 + 31.5 + 54.2 = $261 Mil.
Accounts Receivable was $461 Mil.
Revenue was 605.2 + 576.4 + 575 + 573.7 = $2,330 Mil.
Gross Profit was 162.9 + 164 + 172 + 172.9 = $672 Mil.
Total Current Assets was $1,062 Mil.
Total Assets was $1,865 Mil.
Property, Plant and Equipment(Net PPE) was $241 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $367 Mil.
Total Current Liabilities was $710 Mil.
Long-Term Debt was $345 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)
=(506.1 / 2426.3) / (460.6 / 2330.3)
=0.20858921 / 0.19765695
=1.0553

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)
=(671.8 / 2330.3) / (734 / 2426.3)
=0.28828906 / 0.30251824
=0.953

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 - (1181.2 + 259.3) / 2036.2) / (1 - (1062 + 241.2) / 1865)
=0.29255476 / 0.30123324
=0.9712

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
=2426.3 / 2330.3
=1.0412

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))
=(84.9 / (84.9 + 241.2)) / (96.9 / (96.9 + 259.3))
=0.26034959 / 0.27203818
=0.957

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)
=(385.3 / 2426.3) / (367.2 / 2330.3)
=0.15880147 / 0.15757628
=1.0078

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)
=((484.8 + 769.4) / 2036.2) / ((345.4 + 709.5) / 1865)
=0.61595128 / 0.56563003
=1.089

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
=(154.9 - -0.2 - 261.3) / 2036.2
=-0.0522

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 0.98891.15570.94350.43711.39131.70890.57090.95760.90111.0553
GMI 0.98970.96360.95570.97651.05931.10990.99410.90621.01040.953
AQI 1.36611.27061.37070.94180.94090.84611.07880.96991.15650.9712
SGI 1.20811.26671.07221.07141.06481.13771.23341.13551.02821.0412
DEPI 1.0351.11740.90990.97480.99031.0160.98160.95480.98990.957
SGAI 0.95861.00311.02431.01760.96140.89380.98111.04920.94031.0078
LVGI 1.04270.93921.24180.95240.93461.01571.18920.97690.93821.089
TATA -0.04830.0509-0.0574-0.08730.0429-0.1104-0.0518-0.0848-0.0093-0.0522
M-score -2.39-1.74-2.70-3.37-1.83-2.21-2.94-2.86-2.49-2.71

Parexel International Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.00780.95760.85530.81920.89710.90110.58680.7340.75961.0553
GMI 0.89890.90620.90940.92410.94781.01041.04251.04761.0180.953
AQI 0.96880.96991.00121.04041.00361.15651.18581.09951.11820.9712
SGI 1.14591.13551.12051.07351.04631.02821.01331.02561.04141.0412
DEPI 0.91920.95480.94460.9310.93740.98991.01671.0281.04340.957
SGAI 1.06071.04921.05351.03551.0170.94030.90970.8880.91331.0078
LVGI 0.94420.97690.99220.9961.0390.93821.0771.09981.06961.089
TATA -0.0546-0.0848-0.1122-0.0722-0.0279-0.0093-0.0352-0.0063-0.0211-0.0522
M-score -2.67-2.86-3.09-2.96-2.71-2.49-2.92-2.68-2.71-2.71
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