DaVita (FRA:TRL) Beneish M-Score : -2.92 (As of May. 03, 2024)

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What is DaVita 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 -2.92 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:TRL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92 Med: -2.75 Max: -2.56
Current: -2.92

During the past 13 years, the highest Beneish M-Score of DaVita was -2.56. The lowest was -2.92. And the median was -2.75.

DaVita Beneish M-Score Historical Data

The historical data trend for DaVita'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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DaVita Beneish M-Score Chart

DaVita Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.77

-2.76

-2.78

-2.69

-2.92

DaVita Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.86	-2.97	-2.88	-2.92	-

Competitive Comparison of DaVita's Beneish M-Score

For the Medical Care Facilities subindustry, DaVita'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.

DaVita's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

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

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

DaVita 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 DaVita 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 * 1.2129

0.528 * 0.9037

0.404 * 1.006

0.892 * 1.0197

0.115 * 0.9514

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0213

4.679 * -0.037093

0.327 * 0.9924

-2.50

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €2,752 Mil.
Revenue was 2824.911 + 2884.65 + 2924.688 + 2769.341 = €11,404 Mil.
Gross Profit was 912.253 + 923.766 + 987.614 + 871.797 = €3,695 Mil.
Total Current Assets was €3,389 Mil.
Total Assets was €16,036 Mil.
Property, Plant and Equipment(Net PPE) was €5,072 Mil.
Depreciation, Depletion and Amortization(DDA) was €697 Mil.
Selling, General, & Admin. Expense(SGA) was €1,391 Mil.
Total Current Liabilities was €2,376 Mil.
Long-Term Debt & Capital Lease Obligation was €10,407 Mil.
Net Income was 220.477 + 138.16 + 231.094 + 164.932 = €755 Mil.
Non Operating Income was 26.853 + -23.267 + -11.639 + 1.721 = €-6 Mil.
Cash Flow from Operations was -124.049 + 444.933 + 619.509 + 415.449 = €1,356 Mil.

Total Receivables was €2,225 Mil.
Revenue was 2683.101 + 2753.542 + 2978.181 + 2768.712 = €11,184 Mil.
Gross Profit was 760.752 + 781.827 + 871.77 + 860.831 = €3,275 Mil.
Total Current Assets was €2,839 Mil.
Total Assets was €15,624 Mil.
Property, Plant and Equipment(Net PPE) was €5,448 Mil.
Depreciation, Depletion and Amortization(DDA) was €708 Mil.
Selling, General, & Admin. Expense(SGA) was €1,335 Mil.
Total Current Liabilities was €2,396 Mil.
Long-Term Debt & Capital Lease Obligation was €10,155 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)
	=	(2751.788 / 11403.59)	/	(2224.988 / 11183.536)
	=	0.241309	/	0.198952
	=	1.2129

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)
	=	(3275.18 / 11183.536)	/	(3695.43 / 11403.59)
	=	0.292857	/	0.324058
	=	0.9037

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 - (3389.053 + 5072.262) / 16036.46)	/	(1 - (2839.116 + 5448.387) / 15623.753)
	=	0.47237	/	0.469557
	=	1.006

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
	=	11403.59	/	11183.536
	=	1.0197

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))
	=	(707.808 / (707.808 + 5448.387))	/	(697.266 / (697.266 + 5072.262))
	=	0.114975	/	0.120853
	=	0.9514

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)
	=	(1390.757 / 11403.59)	/	(1335.472 / 11183.536)
	=	0.121958	/	0.119414
	=	1.0213

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)
	=	((10407.496 + 2376.453) / 16036.46)	/	((10155.079 + 2395.797) / 15623.753)
	=	0.79718	/	0.80332
	=	0.9924

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
	=	(754.663 - -6.332	-	1355.842)	/	16036.46
	=	-0.037093

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.

DaVita has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.

DaVita Beneish M-Score Related Terms

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DaVita (FRA:TRL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » DaVita Inc (FRA:TRL) » Definitions » Beneish M-Score

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DVA:USA DVAI34:Brazil

Address

2000 16th Street, Denver, CO, USA, 80202

Website

https://www.davita.com

DaVita is the largest provider of dialysis services in the United States, boasting market share that eclipses 35% when measured by both patients and clinics. The firm operates over 3,000 facilities worldwide, mostly in the U.S., and treats over 240,000 patients globally each year. Government payers dominate U.S. dialysis reimbursement. DaVita receives about two thirds of U.S. sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. However, while commercial insurers represented only about 10% of the U.S. patients treated, they represent nearly all of the profits generated by DaVita in the U.S. dialysis business.

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