TAL Education Group (MEX:TAL) Beneish M-Score : -2.94 (As of Dec. 15, 2024)

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What is TAL Education Group 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 -2.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:TAL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.13 Med: -1.94 Max: 4.93
Current: -2.94

During the past 13 years, the highest Beneish M-Score of TAL Education Group was 4.93. The lowest was -4.13. And the median was -1.94.

TAL Education Group Beneish M-Score Historical Data

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

TAL Education Group Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Beneish M-Score

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-3.21

-2.93

-2.97

0.10

-2.85

TAL Education Group Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
Beneish M-Score	Get a 7-Day Free Trial															-2.22	-2.94	-2.85	-3.23	-2.94

Competitive Comparison of TAL Education Group's Beneish M-Score

For the Education & Training Services subindustry, TAL Education Group'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.

TAL Education Group's Beneish M-Score Distribution in the Education Industry

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

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

TAL Education Group 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 TAL Education Group 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 * 0.739

0.528 * 1.0093

0.404 * 0.6888

0.892 * 1.554

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.844

4.679 * -0.073538

0.327 * 1.3533

-2.78

This Year (Aug24) TTM:

Last Year (Aug23) TTM:

Total Receivables was MXN8 Mil.
Revenue was 12217.211 + 7038.694 + 7327.486 + 6489.966 = MXN33,073 Mil.
Gross Profit was 6878.857 + 3639.758 + 3877.659 + 3480.825 = MXN17,877 Mil.
Total Current Assets was MXN78,028 Mil.
Total Assets was MXN105,352 Mil.
Property, Plant and Equipment(Net PPE) was MXN15,784 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN0 Mil.
Selling, General, & Admin. Expense(SGA) was MXN18,081 Mil.
Total Current Liabilities was MXN25,526 Mil.
Long-Term Debt & Capital Lease Obligation was MXN5,175 Mil.
Net Income was 1132.856 + 193.766 + 469.231 + -416.081 = MXN1,380 Mil.
Non Operating Income was 306.554 + 159.472 + 397.52 + 192.072 = MXN1,056 Mil.
Cash Flow from Operations was -11.362 + 4194 + -405.059 + 4293.96 = MXN8,072 Mil.

Total Receivables was MXN7 Mil.
Revenue was 6953.807 + 4888.729 + 4934.548 + 4506.1 = MXN21,283 Mil.
Gross Profit was 4094.47 + 2412.541 + 2591.653 + 2512.274 = MXN11,611 Mil.
Total Current Assets was MXN56,900 Mil.
Total Assets was MXN77,356 Mil.
Property, Plant and Equipment(Net PPE) was MXN8,153 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN0 Mil.
Selling, General, & Admin. Expense(SGA) was MXN13,786 Mil.
Total Current Liabilities was MXN14,547 Mil.
Long-Term Debt & Capital Lease Obligation was MXN2,110 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)
	=	(7.772 / 33073.357)	/	(6.769 / 21283.184)
	=	0.000235	/	0.000318
	=	0.739

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)
	=	(11610.938 / 21283.184)	/	(17877.099 / 33073.357)
	=	0.545545	/	0.540529
	=	1.0093

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 - (78028.452 + 15783.721) / 105352.464)	/	(1 - (56900.432 + 8153.168) / 77355.714)
	=	0.10954	/	0.159033
	=	0.6888

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
	=	33073.357	/	21283.184
	=	1.554

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))
	=	(0 / (0 + 8153.168))	/	(0 / (0 + 15783.721))
	=	0	/	0
	=	1

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)
	=	(18080.611 / 33073.357)	/	(13785.894 / 21283.184)
	=	0.546682	/	0.647736
	=	0.844

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)
	=	((5175.125 + 25525.637) / 105352.464)	/	((2109.872 + 14547.489) / 77355.714)
	=	0.29141	/	0.215335
	=	1.3533

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
	=	(1379.772 - 1055.618	-	8071.539)	/	105352.464
	=	-0.073538

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.

TAL Education Group has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

TAL Education Group Beneish M-Score Related Terms

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TAL Education Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » TAL Education Group (MEX:TAL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TAL:USA IZZ:Germany IZZ:Germany T1AL34:Brazil

Address

Xiaoying West Street, 5th Floor, Tower B, Heying Center, Haidian District, Beijing, CHN, 100085

Website

https://www.100tal.com

TAL Education Group is a smart learning solutions provider in China. It operates a few business lines including enrichment learning, high school academic tutoring, learning technology, and content solutions, and the like. Among those business lines, TAL focuses on enrichment learning and content solutions.