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Grand Canyon Education (Grand Canyon Education) Beneish M-Score

: -2.69 (As of Today)
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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 -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LOPE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13   Med: -2.63   Max: 56.51
Current: -2.69

During the past 13 years, the highest Beneish M-Score of Grand Canyon Education was 56.51. The lowest was -3.13. And the median was -2.63.


Grand Canyon Education Beneish M-Score Historical Data

The historical data trend for Grand Canyon 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.

* Premium members only.

Grand Canyon Education Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.76 -2.44 -2.85 -2.56 -2.69

Grand Canyon Education Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.56 -2.56 -2.75 -2.69 -2.69

Competitive Comparison

For the Education & Training Services subindustry, Grand Canyon 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.


Grand Canyon Education Beneish M-Score Distribution

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

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



Grand Canyon 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 Grand Canyon Education 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 * 0.9475+0.528 * 1.0205+0.404 * 0.8727+0.892 * 1.0544+0.115 * 1.1408
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9659+4.679 * -0.041567-0.327 * 0.9842
=-2.69

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $80.1 Mil.
Revenue was 278.284 + 221.913 + 210.577 + 250.125 = $960.9 Mil.
Gross Profit was 156.303 + 108.915 + 99.228 + 139.264 = $503.7 Mil.
Total Current Assets was $337.5 Mil.
Total Assets was $930.5 Mil.
Property, Plant and Equipment(Net PPE) was $262.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.0 Mil.
Selling, General, & Admin. Expense(SGA) was $246.0 Mil.
Total Current Liabilities was $97.0 Mil.
Long-Term Debt & Capital Lease Obligation was $88.3 Mil.
Net Income was 80.709 + 35.739 + 28.973 + 59.564 = $205.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 116.385 + -29.851 + 94.129 + 62.999 = $243.7 Mil.
Total Receivables was $80.2 Mil.
Revenue was 258.7 + 208.72 + 199.753 + 244.133 = $911.3 Mil.
Gross Profit was 147.803 + 103.844 + 95.539 + 140.314 = $487.5 Mil.
Total Current Assets was $273.3 Mil.
Total Assets was $832.7 Mil.
Property, Plant and Equipment(Net PPE) was $220.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.2 Mil.
Selling, General, & Admin. Expense(SGA) was $241.6 Mil.
Total Current Liabilities was $99.7 Mil.
Long-Term Debt & Capital Lease Obligation was $68.8 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)
=(80.127 / 960.899) / (80.201 / 911.306)
=0.083388 / 0.088007
=0.9475

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)
=(487.5 / 911.306) / (503.71 / 960.899)
=0.534947 / 0.524207
=1.0205

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 - (337.522 + 262.153) / 930.463) / (1 - (273.273 + 220.223) / 832.749)
=0.355509 / 0.407389
=0.8727

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
=960.899 / 911.306
=1.0544

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))
=(31.177 / (31.177 + 220.223)) / (31.973 / (31.973 + 262.153))
=0.124014 / 0.108705
=1.1408

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)
=(246.035 / 960.899) / (241.581 / 911.306)
=0.256047 / 0.265093
=0.9659

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)
=((88.257 + 97.033) / 930.463) / ((68.793 + 99.706) / 832.749)
=0.199137 / 0.202341
=0.9842

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
=(204.985 - 0 - 243.662) / 930.463
=-0.041567

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.

Grand Canyon Education has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.


Grand Canyon Education Beneish M-Score Related Terms

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Grand Canyon Education (Grand Canyon Education) Business Description

Traded in Other Exchanges
Address
2600 West Camelback Road, Phoenix, AZ, USA, 85017
Grand Canyon Education, Inc is a publicly traded education services company dedicated to serving colleges and universities. GCE's most significant university partner is Grand Canyon University, an Arizona non-profit corporation that operates a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases and certificates across nine colleges both online, on ground at its campus in Phoenix, Arizona and at four off-site classroom and laboratory sites. The Company generates all of its revenue through services agreements with its university partners.
Executives
Jack A Henry director C/O SIERRA BLANCA VENTURES, 1211 E. MISSOURI AVENUE, SUITE 222, PHOENIX AZ 85014
Lisa Graham Keegan director 2600 W. CAMELBACK ROAD, PHOENIX AZ 85017
Lori Browning officer: Chief Accounting Officer 2600 W. CAMELBACK ROAD, PHOENIX AZ 85017
Kathy J. Claypatch officer: Chief Information Officer 2600 W. CAMELBACK ROAD, PHOENIX AZ 85017
Sara R. Dial director 3300 W. CAMELBACK ROAD, SCOTTSDALE AZ 85017
David Adame director 2600 W. CAMELBACK ROAD, PHOENIX AZ 85017
Brian E Mueller officer: Chief Executive Officer 3300 W. CAMELBACK ROAD, PHOENIX AZ 85017
William Stan Meyer officer: Executive Vice President 3300 W. CAMELBACK ROAD, PHOENIX AZ 85017
Joseph N Mildenhall officer: Chief Information Officer 3300 W. CAMELBACK AVENUE, PHOENIX AZ 85017
Daniel E Bachus officer: Chief Financial Officer 3300 W. CAMELBACK ROAD, PHOENIX AZ 85017
Dilek Marsh officer: Chief Data Officer 2600 W. CAMELBACK ROAD, PHOENIX AZ 85017
Daniel J. Briggs officer: Orbis Education, CEO 2600 WEST CAMELBACK ROAD, PHOENIX AZ 85017
Chevy Humphrey director 2600 W. CAMELBACK ROAD, PHOENIX AZ 85017
Brian M Roberts officer: General Counsel 18835 N. THOMPSON PEAK PARKWAY, SUITE 300 & 380, SCOTTSDALE AZ 85255
Brent D. Richardson director, 10 percent owner, officer: Executive Chairman 3300 W. CAMELBACK ROAD, PHOENIX AZ 85017