Laureate Education (MEX:LAUR) Beneish M-Score : -2.73 (As of Dec. 11, 2024)

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What is Laureate Education 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 -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:LAUR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.17 Med: -2.55 Max: 0.14
Current: -2.73

During the past 13 years, the highest Beneish M-Score of Laureate Education was 0.14. The lowest was -4.17. And the median was -2.55.

Laureate Education Beneish M-Score Historical Data

The historical data trend for Laureate Education'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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Laureate Education Beneish M-Score Chart

Laureate Education Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.72

-1.60

-1.12

-2.84

-2.54

Laureate Education Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.22	-2.54	-2.67	-2.68	-2.73

Competitive Comparison of Laureate Education's Beneish M-Score

For the Education & Training Services subindustry, Laureate Education'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.

Laureate Education's Beneish M-Score Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Laureate Education's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Laureate Education's Beneish M-Score falls into.

Laureate Education 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 Laureate Education 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 * 0.8525

0.528 * 0.9369

0.404 * 1.0148

0.892 * 1.0951

0.115 * 0.9462

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9505

4.679 * -0.0092

0.327 * 1.0709

-2.62

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN1,860 Mil.
Revenue was 7258.455 + 9146.22 + 4570.144 + 6949.817 = MXN27,925 Mil.
Gross Profit was 1627.896 + 3302.162 + 355.06 + 2206.89 = MXN7,492 Mil.
Total Current Assets was MXN5,140 Mil.
Total Assets was MXN37,946 Mil.
Property, Plant and Equipment(Net PPE) was MXN15,964 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN1,923 Mil.
Selling, General, & Admin. Expense(SGA) was MXN945 Mil.
Total Current Liabilities was MXN8,111 Mil.
Long-Term Debt & Capital Lease Obligation was MXN8,387 Mil.
Net Income was 1682.792 + 2347.355 + -178.426 + 710.576 = MXN4,562 Mil.
Non Operating Income was 304.136 + 504.884 + -153.366 + -443.435 = MXN212 Mil.
Cash Flow from Operations was 2336.431 + 737.018 + 550.216 + 1075.505 = MXN4,699 Mil.

Total Receivables was MXN1,992 Mil.
Revenue was 6297.506 + 7921.63 + 4528.871 + 6752.011 = MXN25,500 Mil.
Gross Profit was 1227.701 + 2881.358 + 467.623 + 1832.975 = MXN6,410 Mil.
Total Current Assets was MXN4,878 Mil.
Total Assets was MXN36,532 Mil.
Property, Plant and Equipment(Net PPE) was MXN15,676 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN1,775 Mil.
Selling, General, & Admin. Expense(SGA) was MXN908 Mil.
Total Current Liabilities was MXN7,517 Mil.
Long-Term Debt & Capital Lease Obligation was MXN7,315 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)
	=	(1859.67 / 27924.636)	/	(1991.903 / 25500.018)
	=	0.066596	/	0.078114
	=	0.8525

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)
	=	(6409.657 / 25500.018)	/	(7492.008 / 27924.636)
	=	0.251359	/	0.268294
	=	0.9369

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 - (5139.857 + 15963.714) / 37946.339)	/	(1 - (4877.866 + 15676.258) / 36532.2)
	=	0.443858	/	0.43737
	=	1.0148

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
	=	27924.636	/	25500.018
	=	1.0951

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))
	=	(1775.157 / (1775.157 + 15676.258))	/	(1922.872 / (1922.872 + 15963.714))
	=	0.10172	/	0.107504
	=	0.9462

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)
	=	(945.035 / 27924.636)	/	(907.903 / 25500.018)
	=	0.033842	/	0.035604
	=	0.9505

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)
	=	((8387.261 + 8111.281) / 37946.339)	/	((7315.31 + 7517.09) / 36532.2)
	=	0.434786	/	0.406009
	=	1.0709

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
	=	(4562.297 - 212.219	-	4699.17)	/	37946.339
	=	-0.0092

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.

Laureate Education has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.

Laureate Education Beneish M-Score Related Terms

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Laureate Education Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Laureate Education Inc (MEX:LAUR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

LAUR:USA LA3A:Germany LA3A:Germany

Address

PMB 1158, 1000 Brickell Avenue, Suite 715, Miami, FL, USA, 33131

Website

https://investors.laureate.net

Laureate Education Inc is an international community of universities. The company provides higher education programs and services to students through an international network of licensed universities and higher education institutions. Its geographical segments include Peru and Mexico.