Market Cap : 2.03 B | Enterprise Value : 1.99 B | P/E (TTM) : | P/B : 1.55 |
---|
NYSE:ATGE has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NYSE:ATGE has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 -3.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
During the past 13 years, the highest Beneish M-Score of Adtalem Global Education was -1.11. The lowest was -3.37. And the median was -2.68.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Adtalem Global Education's Beneish M-Score falls into.
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 Adtalem Global 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 * 0.8291 | + | 0.528 * 0.9513 | + | 0.404 * 0.7875 | + | 0.892 * 1.0331 | + | 0.115 * 0.5244 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.0405 | + | 4.679 * -0.1251 | - | 0.327 * 1.0028 | |||||||
= | -3.37 |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
This Year (Sep20) TTM: | Last Year (Sep19) TTM: |
Accounts Receivable was $100 Mil. Revenue was 268.241 + 259.729 + 271.487 + 266.172 = $1,066 Mil. Gross Profit was 154.543 + 143.679 + 152.775 + 138.914 = $590 Mil. Total Current Assets was $768 Mil. Total Assets was $2,330 Mil. Property, Plant and Equipment(Net PPE) was $477 Mil. Depreciation, Depletion and Amortization(DDA) was $103 Mil. Selling, General, & Admin. Expense(SGA) was $397 Mil. Total Current Liabilities was $410 Mil. Long-Term Debt & Capital Lease Obligation was $475 Mil. Net Income was 19.93 + -256.052 + 150.832 + 5.525 = $-80 Mil. Non Operating Income was -17.141 + 9.726 + 108.436 + -29.542 = $71 Mil. Cash Flow from Operations was 79.927 + 2.161 + 119.205 + -61.142 = $140 Mil. |
Accounts Receivable was $116 Mil. Revenue was 254.613 + 264.24 + 258.703 + 253.961 = $1,032 Mil. Gross Profit was 126.579 + 142.261 + 138.511 + 135.884 = $543 Mil. Total Current Assets was $456 Mil. Total Assets was $2,460 Mil. Property, Plant and Equipment(Net PPE) was $550 Mil. Depreciation, Depletion and Amortization(DDA) was $57 Mil. Selling, General, & Admin. Expense(SGA) was $369 Mil. Total Current Liabilities was $412 Mil. Long-Term Debt & Capital Lease Obligation was $520 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) |
= | (99.536 / 1065.629) | / | (116.212 / 1031.517) | |
= | 0.09340587 | / | 0.11266126 | |
= | 0.8291 |
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) | |
= | (543.235 / 1031.517) | / | (589.911 / 1065.629) | |
= | 0.52663698 | / | 0.55358009 | |
= | 0.9513 |
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 - (768.473 + 476.768) / 2329.897) | / | (1 - (456.113 + 549.824) / 2460.324) | |
= | 0.46553818 | / | 0.59113637 | |
= | 0.7875 |
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 | |
= | 1065.629 | / | 1031.517 | |
= | 1.0331 |
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)) |
= | (56.671 / (56.671 + 549.824)) | / | (103.373 / (103.373 + 476.768)) | |
= | 0.09344018 | / | 0.17818599 | |
= | 0.5244 |
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) |
= | (396.929 / 1065.629) | / | (369.265 / 1031.517) | |
= | 0.37248329 | / | 0.35798247 | |
= | 1.0405 |
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) |
= | ((475.228 + 409.937) / 2329.897) | / | ((519.655 + 412.475) / 2460.324) | |
= | 0.37991594 | / | 0.37886473 | |
= | 1.0028 |
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 | |
= | (-79.765 - 71.479 | - | 140.151) | / | 2329.897 | |
= | -0.1251 |
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.
Adtalem Global Education has a M-score of -3.37 suggests that the company is unlikely to be a manipulator.
No Headline