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Parexel International Corporation (NAS:PRXL)
Beneish M-Score
-2.65 (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 Corporation has a M-score of -2.65 suggests that the company is not a manipulator.

PRXL' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -0.65
Current: -2.65

-3.47
-0.65

During the past 13 years, the highest Beneish M-Score of Parexel International Corporation was -0.65. The lowest was -3.47. And the median was -2.35.


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 Corporation 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 * 0.9606+0.528 * 0.9164+0.404 * 0.9578+0.892 * 1.1863+0.115 * 0.9242
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0755+4.679 * -0.0462-0.327 * 1.0172
=-2.65

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
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.
Net Income was 28.329 + 25.954 + 30.041 + 29.524 = $114 Mil.
Non Operating Income was -1.201 + -0.201 + 2.212 + 1.813 = $3 Mil.
Cash Flow from Operations was 149.474 + -37.137 + 32.078 + 53.639 = $198 Mil.
Accounts Receivable was $648 Mil.
Revenue was 483.137 + 462.52 + 457.745 + 412.029 = $1,815 Mil.
Gross Profit was 120.743 + 115.349 + 112.5 + 114.547 = $463 Mil.
Total Current Assets was $1,031 Mil.
Total Assets was $1,698 Mil.
Property, Plant and Equipment(Net PPE) was $212 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General & Admin. Expense(SGA) was $280 Mil.
Total Current Liabilities was $705 Mil.
Long-Term Debt was $274 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)
=(738.318 / 2153.609) / (647.903 / 1815.431)
=0.34282825 / 0.3568866
=0.9606

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)
=(146.051 / 1815.431) / (162.638 / 2153.609)
=0.25511242 / 0.27837133
=0.9164

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 - (1166.776 + 229.169) / 1877.789) / (1 - (1031.011 + 211.824) / 1697.65)
=0.25660178 / 0.26790858
=0.9578

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
=2153.609 / 1815.431
=1.1863

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))
=(66.179 / (66.179 + 211.824)) / (79.506 / (79.506 + 229.169))
=0.23805139 / 0.25757188
=0.9242

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)
=(357.309 / 2153.609) / (280.052 / 1815.431)
=0.16591173 / 0.15426199
=1.0755

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)
=((369.054 + 733.315) / 1877.789) / ((274.465 + 705.326) / 1697.65)
=0.58705691 / 0.57714547
=1.0172

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
=(113.848 - 2.623 - 198.054) / 1877.789
=-0.0462

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 Corporation has a M-score of -2.65 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 Corporation 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 Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.02831.01250.92010.86990.78390.80950.81380.8861.0450.9606
GMI 1.1271.12741.13121.10991.06911.0731.05480.99410.96220.9164
AQI 0.9590.97070.98660.84610.90550.97280.96561.07881.01540.9578
SGI 1.05121.04861.08431.13771.19381.23961.26461.23341.19911.1863
DEPI 0.9530.92690.90451.0161.04681.09271.1040.98160.95330.9242
SGAI 0.95670.97180.92570.89380.88050.8610.90870.98111.02131.0755
LVGI 0.98290.99450.96231.01571.00661.0781.16191.18921.1311.0172
TATA -0.0749-0.0988-0.1015-0.1104-0.0939-0.0803-0.0882-0.0518-0.0047-0.0462
M-score -2.70-2.83-2.88-2.98-2.92-2.78-2.84-2.65-2.35-2.65
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