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Select Medical Holdings Beneish M-Score

: -2.53 (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 -2.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:SEM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08   Med: -2.52   Max: -2.16
Current: -2.53

-3.08
-2.16

During the past 13 years, the highest Beneish M-Score of Select Medical Holdings was -2.16. The lowest was -3.08. And the median was -2.52.


Select Medical Holdings Beneish M-Score Historical Data

The historical data trend for Select Medical Holdings'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.

Select Medical Holdings 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 -2.75 -2.42 -2.74 -2.60 -2.86

Select Medical Holdings 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 -3.08 -2.98 -2.86 -2.93 -2.53

Competitive Comparison

For the Medical Care Facilities subindustry, Select Medical Holdings'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.

   

Select Medical Holdings Beneish M-Score Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Select Medical Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Select Medical Holdings's Beneish M-Score falls into.



Select Medical Holdings 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 Select Medical Holdings 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 * 1.1227+0.528 * 0.8718+0.404 * 0.9349+0.892 * 1.107+0.115 * 1.0323
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9442+4.679 * -0.0403-0.327 * 0.9687
=-2.53

* 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 $931 Mil.
Revenue was 1564.02 + 1546.463 + 1460.494 + 1423.869 = $5,995 Mil.
Gross Profit was 272.572 + 253.014 + 213.9 + 242.918 = $982 Mil.
Total Current Assets was $1,868 Mil.
Total Assets was $7,956 Mil.
Property, Plant and Equipment(Net PPE) was $1,982 Mil.
Depreciation, Depletion and Amortization(DDA) was $202 Mil.
Selling, General, & Admin. Expense(SGA) was $142 Mil.
Total Current Liabilities was $1,409 Mil.
Long-Term Debt & Capital Lease Obligation was $4,280 Mil.
Net Income was 164.894 + 110.546 + 77.274 + 76.946 = $430 Mil.
Non Operating Income was 11.809 + 9.919 + 9.46 + 13.908 = $45 Mil.
Cash Flow from Operations was 123.138 + 239.888 + 207.438 + 134.537 = $705 Mil.
Accounts Receivable was $749 Mil.
Revenue was 1232.718 + 1414.632 + 1374.584 + 1393.343 = $5,415 Mil.
Gross Profit was 150.262 + 214.261 + 198.935 + 210.232 = $774 Mil.
Total Current Assets was $1,363 Mil.
Total Assets was $7,468 Mil.
Property, Plant and Equipment(Net PPE) was $1,982 Mil.
Depreciation, Depletion and Amortization(DDA) was $209 Mil.
Selling, General, & Admin. Expense(SGA) was $136 Mil.
Total Current Liabilities was $1,256 Mil.
Long-Term Debt & Capital Lease Obligation was $4,257 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)
=(931.179 / 5994.846) / (749.245 / 5415.277)
=0.15532993 / 0.13835765
=1.1227

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)
=(773.69 / 5415.277) / (982.404 / 5994.846)
=0.14287173 / 0.16387477
=0.8718

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 - (1868.17 + 1981.557) / 7956.379) / (1 - (1363.329 + 1981.807) / 7468.458)
=0.51614585 / 0.55209817
=0.9349

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
=5994.846 / 5415.277
=1.107

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))
=(209.468 / (209.468 + 1981.807)) / (202.21 / (202.21 + 1981.557))
=0.09559184 / 0.09259688
=1.0323

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)
=(141.885 / 5994.846) / (135.739 / 5415.277)
=0.02366783 / 0.02506594
=0.9442

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)
=((4279.692 + 1409.028) / 7956.379) / ((4256.514 + 1255.969) / 7468.458)
=0.71498856 / 0.73810189
=0.9687

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
=(429.66 - 45.096 - 705.001) / 7956.379
=-0.0403

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.

Select Medical Holdings has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.


Select Medical Holdings Beneish M-Score Related Terms

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Select Medical Holdings Business Description

Select Medical Holdings logo
Industry
Traded in Other Exchanges
Address
4714 Gettysburg Road, P.O. Box 2034, Mechanicsburg, PA, USA, 17055
Select Medical Holdings Corp is a healthcare company that operates through four main segments: critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and Concentra institutions. Critical illness recovery hospitals and rehabilitation centers are designed for patients requiring extended recovery time with medical services. These two sectors combined compose roughly half of the total revenue and include over 100 critical illness recovery hospitals and inpatient rehab facilities. The outpatient rehabilitation segment includes over 1,700 rehabilitation clinics. The Concentra segment includes over 500 institutions. The company is headquartered in Pennsylvania, and it operates across the United States.
Executives
Ortenzio Rocco A director, officer: Vice Chairman and Co-Founder SELECT MEDICAL CORP 4716 OLD GETTYSBURG RD PO BOX 2034 MECHANICSBURG PA 17055
Romberger Scott A officer: Senior Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Tarvin Michael E officer: Executive Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Saich John A. officer: Executive Vice President C/O SELECT MEDICAL HOLDINGS CORPORATION 4714 GETTYSBURG ROAD MECHANICSBURG PA 17055
Chernow David S officer: President and CEO C/O JUNIOR ACHIEVEMENT INC ONE EDUCATION WAY COLORADO SPRINGS CO 80906
Jackson Martin F officer: Executive Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Thomas Daniel director C/O SELECT MEDICAL CORPORATION 4714 GETTYSBURG ROAD P.O. BOX 2034 MECHANICSBURG PA 17055
Cressey Bryan C director C/O CLARION TECHNOLOGIES INC 235 CENTRAL AVE HOLLAND MI 49423
Scully Thomas director 320 PARK AVENUE, SUITE # 2500 NEW YORK NM 10022
Carson Russell L director 320 PARK AVENUE STE 2500 NEW YORK NY 10022
Frist William H. director 600 MONTGOMERY STREET SAN FRANCISCO CA 94111
Ely James S. Iii director 4000 MERIDIAN BLVD FRANKLIN TN 37067
Ortenzio Robert A director, officer: Exec. Chairman and Co-Founder 4718 OLD GETTYSBURG RD POST OFFICE BOX 2034 MECHANICSBURG PA 30309
Tavenner Marilyn B director BOULDERS III 7800 BEAUFORT SPRING DR RICHMOND VA 23235
Breighner Robert G. Jr officer: Vice President, Compliance C/O SELECT MEDICAL HOLDINGS CORPORATION 4714 GETTYSBURG ROAD MACHANICSBURG PA 17055

Select Medical Holdings Headlines

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