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Strategic Education Beneish M-Score

: -1.98 (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 -1.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:STRA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.83   Med: -2.7   Max: 0.14
Current: -1.98

-3.83
0.14

During the past 13 years, the highest Beneish M-Score of Strategic Education was 0.14. The lowest was -3.83. And the median was -2.70.


Strategic Education Beneish M-Score Historical Data

The historical data trend for Strategic 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.

Strategic Education Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.39 -2.88 -0.18 -2.98 -2.62

Strategic Education Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.85 -2.87 -2.62 -2.24 -1.98

Competitive Comparison

For the Education & Training Services subindustry, Strategic 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.

   

Strategic Education Beneish M-Score Distribution

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

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



Strategic 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 Strategic 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 * 1.7958+0.528 * 1.0391+0.404 * 1.2266+0.892 * 1.0676+0.115 * 1.1451
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1486+4.679 * -0.0283-0.327 * 1.8164
=-1.98

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $79 Mil.
Revenue was 299.173 + 290.336 + 267.494 + 239.026 = $1,096 Mil.
Gross Profit was 146.235 + 137.531 + 120.487 + 111.852 = $516 Mil.
Total Current Assets was $394 Mil.
Total Assets was $2,363 Mil.
Property, Plant and Equipment(Net PPE) was $288 Mil.
Depreciation, Depletion and Amortization(DDA) was $124 Mil.
Selling, General, & Admin. Expense(SGA) was $339 Mil.
Total Current Liabilities was $252 Mil.
Long-Term Debt & Capital Lease Obligation was $290 Mil.
Net Income was 19.976 + 9.577 + 5.917 + 10.96 = $46 Mil.
Non Operating Income was -5.991 + -17.112 + -14.371 + -6.032 = $-44 Mil.
Cash Flow from Operations was 47.05 + 78.781 + -15.881 + 46.845 = $157 Mil.
Accounts Receivable was $41 Mil.
Revenue was 255.831 + 265.302 + 263.772 + 241.747 = $1,027 Mil.
Gross Profit was 130.287 + 132.366 + 130.449 + 109.22 = $502 Mil.
Total Current Assets was $553 Mil.
Total Assets was $1,792 Mil.
Property, Plant and Equipment(Net PPE) was $199 Mil.
Depreciation, Depletion and Amortization(DDA) was $104 Mil.
Selling, General, & Admin. Expense(SGA) was $276 Mil.
Total Current Liabilities was $149 Mil.
Long-Term Debt & Capital Lease Obligation was $77 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(78.609 / 1096.029) / (41.004 / 1026.652)
=0.07172164 / 0.03993953
=1.7958

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)
=(502.322 / 1026.652) / (516.105 / 1096.029)
=0.48928167 / 0.47088626
=1.0391

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 - (393.635 + 287.881) / 2363.313) / (1 - (553.496 + 198.665) / 1791.564)
=0.71162686 / 0.58016515
=1.2266

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
=1096.029 / 1026.652
=1.0676

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))
=(104.345 / (104.345 + 198.665)) / (123.797 / (123.797 + 287.881))
=0.34436157 / 0.30071318
=1.1451

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)
=(338.944 / 1096.029) / (276.425 / 1026.652)
=0.30924729 / 0.26924898
=1.1486

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)
=((290.13 + 252.189) / 2363.313) / ((77.458 + 148.884) / 1791.564)
=0.22947405 / 0.12633766
=1.8164

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
=(46.43 - -43.506 - 156.795) / 2363.313
=-0.0283

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.

Strategic Education has a M-score of -1.98 suggests that the company is unlikely to be a manipulator.


Strategic Education Beneish M-Score Related Terms

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Strategic Education Business Description

Strategic Education logo
Industry
Consumer Defensive » Education NAICS : 611310 SIC : 8299
Traded in Other Exchanges
Address
2303 Dulles Station Boulevard, Herndon, VA, USA, 20171
Strategic Education Inc is engaged in providing educational services. It offers flexible and affordable associate, bachelor's, master's, and doctoral programs. Strategic Education provides courses in the eastern United States. The group operates through segments namely: Strayer University Segment, Capella University Segment, and Australia/New Zealand Segment.
Executives
Grusky Robert R director C/O STRAYER EDUCATION INC 2303 DULLES STATION BOULEVARD HERNDON VA 20171
Casteen John T Iii director 301 S. COLLEGE STREET 30TH FLOOR, NC0630 CHARLOTTE NC 28288-0630
Gilligan J Kevin director, Vice Chairman P O BOX 1441 MINNEAPOLIS MN 55440-1441
Fick Nathaniel C. director C/O STRAYER EDUCATION 2303 DULLES STATION BLVD. HERNDON VA 20171
Dallas H James director 127 PUBLIC SQUARE CLEVELAND OH 44114
Brogley Rita D director 225 SOUTH 6TH STREET, 9TH FLOOR MINNEAPOLIS MN 55402
Waite G Thomas Iii director C/O STRAYER EDUCATION INC 2303 DULLES STATION BOULEVARD HERNDON VA 20171
Beason Charlotte F director C/O STRAYER EDUCATION INC 2303 DULLES STATION BOULEVARD HERNDON VA 20171
Aprahamian Thomas J officer: Chief Accounting Officer 2303 DULLES STATION BOULEVARD HERNDON VA 20171
Hokenson Christa officer: Chief Human Resources Officer C/O STRATEGIC EDUCATION, INC. 2303 DULLES STATION BOULEVARD HERNDON VA 20171
Mcdonnell Raymond Karl director, officer: Chief Executive Officer C/O STRAYER EDUCATION INC 2303 DULLES STATION BOULEVARD HERNDON VA 20171
Jackson Daniel Wayne officer: Chief Financial Officer C/O STRAYER EDUCATION INC. 2303 DULLES STATION BOULEVARD HERNDON VA 20171
Watt Andrew E officer: Chief Operating Officer 225 SOUTH SIXTH STREET 9TH FLOOR MINNEAPOLIS MN 55402
Herraiz Lizette Benedi officer: General Counsel 2303 DULLES STATION BOULEVARD HERNDON VA 20171
Silberman Robert S director, officer: Executive Chairman C/O STRAYER EDUCATION INC 2303 DULLES STATION BOULEVARD HERNDON VA 20171

Strategic Education Headlines

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