GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » The GEO Group Inc (NYSE:GEO) » Definitions » Beneish M-Score

The GEO Group (The GEO Group) Beneish M-Score : -3.05 (As of Apr. 26, 2024)


View and export this data going back to 1994. Start your Free Trial

What is The GEO Group 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 -3.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

GEO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07   Med: -2.53   Max: -1.55
Current: -3.05

During the past 13 years, the highest Beneish M-Score of The GEO Group was -1.55. The lowest was -3.07. And the median was -2.53.


The GEO Group Beneish M-Score Historical Data

The historical data trend for The GEO Group'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.

The GEO Group Beneish M-Score Chart

The GEO Group 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 -3.07 -1.77 -2.79 -2.53 -3.05

The GEO Group 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 -2.53 -2.60 -2.78 -2.99 -3.05

Competitive Comparison of The GEO Group's Beneish M-Score

For the Security & Protection Services subindustry, The GEO Group'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.


The GEO Group's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, The GEO Group's Beneish M-Score distribution charts can be found below:

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



The GEO Group 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 The GEO Group 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 * 0.9225+0.528 * 0.3657+0.404 * 1.0256+0.892 * 1.0153+0.115 * 1.0313
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9539+4.679 * -0.04701-0.327 * 0.9344
=-3.05

* 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 $390 Mil.
Revenue was 608.282 + 602.785 + 593.891 + 608.209 = $2,413 Mil.
Gross Profit was 608.282 + 602.785 + 593.891 + 174.717 = $1,980 Mil.
Total Current Assets was $529 Mil.
Total Assets was $3,696 Mil.
Property, Plant and Equipment(Net PPE) was $2,046 Mil.
Depreciation, Depletion and Amortization(DDA) was $126 Mil.
Selling, General, & Admin. Expense(SGA) was $191 Mil.
Total Current Liabilities was $437 Mil.
Long-Term Debt & Capital Lease Obligation was $1,808 Mil.
Net Income was 25.232 + 24.519 + 29.571 + 28.003 = $107 Mil.
Non Operating Income was -5.445 + 1.183 + 0.557 + -0.136 = $-4 Mil.
Cash Flow from Operations was 52.213 + 119.77 + 18.21 + 94.74 = $285 Mil.
Total Receivables was $416 Mil.
Revenue was 620.682 + 616.683 + 588.177 + 551.185 = $2,377 Mil.
Gross Profit was 190.116 + 180.473 + 176.386 + 166.024 = $713 Mil.
Total Current Assets was $555 Mil.
Total Assets was $3,760 Mil.
Property, Plant and Equipment(Net PPE) was $2,093 Mil.
Depreciation, Depletion and Amortization(DDA) was $133 Mil.
Selling, General, & Admin. Expense(SGA) was $197 Mil.
Total Current Liabilities was $437 Mil.
Long-Term Debt & Capital Lease Obligation was $2,007 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)
=(390.023 / 2413.167) / (416.399 / 2376.727)
=0.161623 / 0.175198
=0.9225

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)
=(712.999 / 2376.727) / (1979.675 / 2413.167)
=0.299992 / 0.820364
=0.3657

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 - (528.505 + 2046.482) / 3696.406) / (1 - (555.008 + 2092.971) / 3760.383)
=0.303381 / 0.295822
=1.0256

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
=2413.167 / 2376.727
=1.0153

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))
=(132.925 / (132.925 + 2092.971)) / (125.784 / (125.784 + 2046.482))
=0.059718 / 0.057905
=1.0313

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)
=(190.766 / 2413.167) / (196.972 / 2376.727)
=0.079052 / 0.082875
=0.9539

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)
=((1807.616 + 437.464) / 3696.406) / ((2006.946 + 437.212) / 3760.383)
=0.607368 / 0.649976
=0.9344

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
=(107.325 - -3.841 - 284.933) / 3696.406
=-0.04701

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.

The GEO Group has a M-score of -3.05 suggests that the company is unlikely to be a manipulator.


The GEO Group Beneish M-Score Related Terms

Thank you for viewing the detailed overview of The GEO Group's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


The GEO Group (The GEO Group) Business Description

Traded in Other Exchanges
Address
4955 Technology Way, Boca Raton, FL, USA, 33431
The GEO Group Inc specializes in detention facilities and community-reentry centers. It operates in four segments: U.S. Secure Services, which primarily encompasses U.S.-based secure services business; Electronic Monitoring and Supervision Services, which conducts its services in the United States, represents services provided to adults for monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants; Reentry Services conducts its services in the United States represents services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs; and International Services.
Executives
Shayn P. March officer: VP of Finance and Treasurer C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Scott Michael Kernan director C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
James H. Black officer: SVP & Pres, Secure Services 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Christopher D. Ryan officer: Senior VP, Human Resources 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Lindsay L. Koren director 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Matthew Albence officer: Senior VP, Client Relations 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Andrew N Shapiro director 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Thomas C. Bartzokis director 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Terry P. Mayotte director C/O TREAN INSURANCE GROUP, INC., 150 LAKE STREET WEST, WAYZATA MN 55391
Jack Brewer director 6200 EXCELSIOR BLVD., SUITE 104, ST. LOUIS PARK MN 55416
George C Zoley director, officer: Chairman & CEO C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Anne N Foreman director C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Richard H Glanton director C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Duane Helkowski director 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Blake Davis officer: Pres. GEO Secure Services 4955 TECHNOLOGY WAY, BOCA RATON FL 33431