Acadia Healthcare Co (FRA:7RA) Beneish M-Score : -2.16 (As of Jun. 23, 2024)

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What is Acadia Healthcare Co Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Acadia Healthcare Co's Beneish M-Score or its related term are showing as below:

FRA:7RA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.87 Med: -2.45 Max: -1.76
Current: -2.16

During the past 13 years, the highest Beneish M-Score of Acadia Healthcare Co was -1.76. The lowest was -3.87. And the median was -2.45.

Acadia Healthcare Co Beneish M-Score Historical Data

The historical data trend for Acadia Healthcare Co's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Acadia Healthcare Co Beneish M-Score Chart

Acadia Healthcare Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.45

-3.77

-2.27

-2.40

Acadia Healthcare Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.29	-2.34	-2.23	-2.40	-2.16

Competitive Comparison of Acadia Healthcare Co's Beneish M-Score

For the Medical Care Facilities subindustry, Acadia Healthcare Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Acadia Healthcare Co's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Acadia Healthcare Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Acadia Healthcare Co's Beneish M-Score falls into.

Acadia Healthcare Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Acadia Healthcare Co for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0316

0.528 * 0.9975

0.404 * 0.9273

0.892 * 1.0699

0.115 * 1.048

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9941

4.679 * 0.062615

0.327 * 1.1498

-2.17

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €433 Mil.
Revenue was 706.607 + 681.148 + 703.063 + 675.024 = €2,766 Mil.
Gross Profit was 682.087 + 656.682 + 677.626 + 650.893 = €2,667 Mil.
Total Current Assets was €562 Mil.
Total Assets was €5,076 Mil.
Property, Plant and Equipment(Net PPE) was €2,298 Mil.
Depreciation, Depletion and Amortization(DDA) was €127 Mil.
Selling, General, & Admin. Expense(SGA) was €1,688 Mil.
Total Current Liabilities was €444 Mil.
Long-Term Debt & Capital Lease Obligation was €1,746 Mil.
Net Income was 70.272 + 52.937 + -203.994 + 66.732 = €-14 Mil.
Non Operating Income was -2.619 + -24.377 + -379.886 + -16.4 = €-423 Mil.
Cash Flow from Operations was -295.582 + 106.651 + 129.173 + 151.16 = €91 Mil.

Total Receivables was €393 Mil.
Revenue was 657.785 + 637.478 + 673.399 + 616.526 = €2,585 Mil.
Gross Profit was 633.482 + 613.02 + 647.574 + 592.855 = €2,487 Mil.
Total Current Assets was €502 Mil.
Total Assets was €4,711 Mil.
Property, Plant and Equipment(Net PPE) was €1,991 Mil.
Depreciation, Depletion and Amortization(DDA) was €115 Mil.
Selling, General, & Admin. Expense(SGA) was €1,587 Mil.
Total Current Liabilities was €353 Mil.
Long-Term Debt & Capital Lease Obligation was €1,414 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(433.385 / 2765.842)	/	(392.68 / 2585.188)
	=	0.156692	/	0.151896
	=	1.0316

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)
	=	(2486.931 / 2585.188)	/	(2667.288 / 2765.842)
	=	0.961992	/	0.964367
	=	0.9975

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (561.942 + 2297.613) / 5075.867)	/	(1 - (502.296 + 1990.648) / 4711.335)
	=	0.436637	/	0.470863
	=	0.9273

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	2765.842	/	2585.188
	=	1.0699

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(115.363 / (115.363 + 1990.648))	/	(126.714 / (126.714 + 2297.613))
	=	0.054778	/	0.052268
	=	1.048

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(1687.771 / 2765.842)	/	(1586.965 / 2585.188)
	=	0.61022	/	0.613868
	=	0.9941

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((1745.836 + 443.728) / 5075.867)	/	((1414.422 + 353.172) / 4711.335)
	=	0.431367	/	0.375179
	=	1.1498

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
	=	(-14.053 - -423.282	-	91.402)	/	5075.867
	=	0.062615

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Acadia Healthcare Co has a M-score of -2.17 suggests that the company is unlikely to be a manipulator.

Acadia Healthcare Co Beneish M-Score Related Terms

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Acadia Healthcare Co (FRA:7RA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Acadia Healthcare Co Inc (FRA:7RA) » Definitions » Beneish M-Score

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ACHC:USA

Address

6100 Tower Circle, Suite 1000, Franklin, TN, USA, 37067

Website

https://www.acadiahealthcare.com

Acadia Healthcare Co Inc acquires and develops behavioral healthcare facilities in the United States, United Kingdom, and Puerto Rico. Acute inpatient psychiatric facilities and specialty treatment facilities contribute the vast majority of Acadia's revenue in the United States. The U.S. facilities receive the largest proportion of payments from Medicaid, with the second-largest proportion from commercial payors. In the United Kingdom, the majority of Acadia's revenue comes from its healthcare facilities, and virtually all of the payment received is from the National Health Service.

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