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Parexel International Corp (NAS:PRXL)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

PRXL' s 10-Year Beneish M-Score Range
Min: -3.37   Max: -1.13
Current: -2.49

-3.37
-1.13

During the past 13 years, the highest Beneish M-Score of Parexel International Corp was -1.13. The lowest was -3.37. And the median was -2.44.


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 * 0.9011+0.528 * 1.0104+0.404 * 1.1564+0.892 * 1.0282+0.115 * 0.9898
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9403+4.679 * -0.0093-0.327 * 0.9382
=-2.49

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $461 Mil.
Revenue was 605.125 + 576.415 + 575.045 + 573.689 = $2,330 Mil.
Gross Profit was 162.924 + 164.079 + 171.948 + 172.877 = $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.
Net Income was 34.178 + 37.741 + 38.76 + 37.142 = $148 Mil.
Non Operating Income was -0.207 + 1.314 + 2.907 + 3.373 = $7 Mil.
Cash Flow from Operations was 59.241 + 0.21 + 79.508 + 18.884 = $158 Mil.
Accounts Receivable was $497 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.



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)
=(460.561 / 2330.274) / (497.109 / 2266.342)
=0.19764242 / 0.21934421
=0.9011

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)
=(164.079 / 2266.342) / (162.924 / 2330.274)
=0.29129849 / 0.28830429
=1.0104

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 - (1062.039 + 241.211) / 1865.021) / (1 - (1122.132 + 234.164) / 1834)
=0.3012143 / 0.2604711
=1.1564

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
=2330.274 / 2266.342
=1.0282

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))
=(81.328 / (81.328 + 234.164)) / (84.939 / (84.939 + 241.211))
=0.2577815 / 0.26042925
=0.9898

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)
=(367.192 / 2330.274) / (379.8 / 2266.342)
=0.1575746 / 0.16758283
=0.9403

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)
=((345.374 + 709.572) / 1865.021) / ((334.443 + 771.232) / 1834)
=0.56564832 / 0.60287623
=0.9382

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
=(147.821 - 7.387 - 157.843) / 1865.021
=-0.0093

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 -2.49 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.10340.98891.15570.94350.43711.39131.70890.57090.95770.9011
GMI 1.00140.98970.96360.95570.97651.05931.10990.99410.90621.0104
AQI 1.121.36611.27061.37070.94180.94090.84611.07880.96991.1564
SGI 1.13171.20811.26671.07221.07141.06481.13771.23341.13551.0282
DEPI 1.17061.0351.11740.90990.97480.99031.0160.98160.95460.9898
SGAI 0.96880.95861.00311.02431.01760.96140.89380.98111.04920.9403
LVGI 0.99621.04270.93921.24180.95240.93461.01571.18920.97690.9382
TATA -0.008-0.04830.0509-0.0574-0.08730.0429-0.1104-0.0518-0.0848-0.0093
M-score -2.23-2.39-1.74-2.70-3.37-1.83-2.21-2.94-2.86-2.49

Parexel International Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.79990.57091.02630.96371.00780.95770.85540.81920.89710.9011
GMI 1.05480.99410.96220.91640.89890.90620.90940.92420.94791.0104
AQI 0.96561.07881.01540.95780.96880.96991.00121.04041.00361.1564
SGI 1.26461.23341.19911.18631.14591.13551.12051.07341.04631.0282
DEPI 1.1040.98160.95330.92420.91920.95460.94450.93110.93740.9898
SGAI 0.90870.98111.02131.07551.06071.04921.05331.03521.01630.9403
LVGI 1.16191.18921.1311.01720.94420.97690.99220.9961.0390.9382
TATA -0.0882-0.0518-0.0047-0.0462-0.0546-0.0848-0.1122-0.0722-0.0279-0.0093
M-score -2.85-2.94-2.37-2.65-2.67-2.86-3.09-2.96-2.71-2.49
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