Devry Education

Group
Financial Analysis Project

Prepared by:
Tim Kuehne

Contents

Devry Education Group

from the corporate website

Institutions

Apollo Group

from the corporate website

Key Ratios: FY 2014

Key Ratios: FY 2015

Analysis

1) Based on the ratios, what are the primary differences between the corporation and the primary
competitor? What specific ratios explain the reasons for these differences?

2) In your opinion, does the corporation compare favorably or unfavorably to the primary competitor?
Give examples to support your conclusion.

Decisions

1) How would you assess the corporations revenue performance over the last few years? What are the
reasons for your assessment?

2) What factor will have the greatest influence in the determination of next years
revenue? In what way would this factor influence revenue?
9
3) What do you predict revenue to be next year?

4) How would you assess the income performance of the corporation over the last few years?

5) What do you predict net income to be next year?

6) How would you assess the corporations total asset growth rate? What evidence justifies your answer?
9
7) Do you expect total assets to increase, decrease, or remain relatively the same next year? Justify your
answer.

8) Do you believe the corporation will need additional financing to meet needs over the next few years?
Why or Why not? If financing is needed, do you believe the corporation would be able to obtain financing
easily?

9) Identify what you believe will be the three strongest aspects of the corporation. Describe why these
might be considered advantages.

10) Identify what you believe to be the three weeks aspects of the corporation. Is it likely these three
weakness can be overcome in the next few years?

11) Are you optimistic or pessimistic concerning the future of the corporation? What specific corporate or
industry characteristics influence your opinion?

10

12) Would you invest in the capital stock or bonds (if applicable) of this corporation if you had sufficient
funds? Would you rather invest in one of the corporations competitors? What are the reasons for your
decision?

10

Devry Education Group

Devry Education Group

About Us
The purpose of DeVry Education Group is to empower its students to achieve their educational
and career goals. DeVry Group (NYSE: DV; member S&P MidCap 400 Index) is a global
provider of educational services and the parent organization of American University of the
Caribbean School of Medicine, Becker Professional Education, Carrington College,
Chamberlain College of Nursing, DeVry Brasil, DeVry University and its Keller Graduate School
of Management, Ross University School of Medicine and Ross University School of Veterinary
Medicine. These institutions offer a wide array of programs in healthcare, business, technology,
accounting, finance and law.

from the corporate website

Devry Education Group is an for-profit higher-education corporation with headquarters
in Downers Grove, Illinois. Their fiscal year ends on June 30th in between school years.

Institutions

University of the Caribbean School of Medicine

Becker Professional Education

Carrington College

Chamberlain College of Nursing

Devry Brasil

Devry Education Group

Devry University

Ross University School of Medicine

o
ss
University School of Veterinary Medicine

Devry Education Group

Apollo Group

Apollo Education Group, Inc. was founded in 1973 in response to a gradual

shift in higher education demographics from a student population dominated by
youth to one in which approximately half the students are adults and over 80
percent of whom work full-time. Apollo's founder, Dr. John Sperling, believed
and events proved him rightthat lifelong employment with a single employer
would be replaced by lifelong learning and employment with a variety of
employers. Lifelong learning requires an institution dedicated solely to the
education of working adults.

from the corporate website

Apollo Education Group, Inc. is a for-profit higher-education corporation with

headquarters in Phoenix, Arizona. Their fiscal year ends August 31.

Devry Education Group

Key Ratios: FY 2014

Devry

Apollo

INCOME
STATEMENT
COMMON-SIZE
DATA
Gross Profit/Sales

48.87%

56.98%

Income from Cont

Ops/Sales

7.89%

6.99%

28.89%

66.04%

15.86%

49.90%

Liabilities/Total Assets

22.92%

59.74%

Equity/Total Assets

76.76%

38.18%

Profit Margin

6.97%

6.92%

Return on Assets

6.95%

6.87%

Return on Equity

9.15%

18.22%

BALANCE SHEET
COMMON-SIZE
DATA
Current Assets/Total
Assets
Current Liabilities/Total
Assets

PROFITABILITY
RATIOS

Devry Education Group

Dividend Payout Ratio

16.34%

0.00%

Current Ratio

1.82

1.32

Quick Ratio

1.82

1.32

29.86%

156.47%

65.05

43.04

13.10

14.32

NA

NA

LIQUIDITY RATIOS

SOLVENCY RATIOS
Debt/Total Assets
Times Interest Earned
(times)

OPERATIONAL
RATIOS
Receivable Turnover
(times)
Inventory Turnover
(times

Key Ratios: FY 2015

Devry

Apollo

INCOME
STATEMENT
COMMON-SIZE
DATA
Gross Profit/Sales

47.64%

52.95%

Income from Cont

Ops/Sales

7.07%

1.85%

28.98%

58.59%

BALANCE SHEET
COMMON-SIZE
DATA
Current Assets/Total
Assets

Devry Education Group

Current Liabilities/Total
Assets

15.52%

37.75%

Liabilities/Total Assets

23.59%

47.55%

Equity/Total Assets

76.41%

51.91%

Profit Margin

7.32%

1.16%

Return on Assets

6.87%

1.12%

Return on Equity

8.97%

2.56%

16.6048363%

0%

Current Ratio

1.87

1.55

Quick Ratio

1.87

1.55

30.88%

91.59%

29.92

1.93

11.27

8.92

PROFITABILITY
RATIOS

Dividend Payout Ratio

LIQUIDITY RATIOS

SOLVENCY RATIOS
Debt/Total Assets
Times Interest Earned
(times)

OPERATIONAL
RATIOS
Receivable Turnover
(times)
Inventory Turnover
(times

NA

NA

Analysis
1) Based on the ratios, what are the primary differences between the corporation
and the primary competitor? What specific ratios explain the reasons for these
differences?

Devry Education Group

2) In your opinion, does the corporation compare favorably or unfavorably to the

primary competitor? Give examples to support your conclusion.

Devry Education Group

Decisions
1) How would you assess the corporations revenue performance over the last
few years? What are the reasons for your assessment?
2) What factor will have the greatest influence in the determination of next years
revenue? In what way would this factor influence revenue?
3) What do you predict revenue to be next year?
4) How would you assess the income performance of the corporation over the last
few years?

5) What do you predict net income to be next year?

6) How would you assess the corporations total asset growth rate? What
evidence justifies your answer?

7) Do you expect total assets to increase, decrease, or remain relatively the same
next year? Justify your answer.
8) Do you believe the corporation will need additional financing to meet needs
over the next few years? Why or Why not? If financing is needed, do you believe
the corporation would be able to obtain financing easily?
9) Identify what you believe will be the three strongest aspects of the corporation.
Describe why these might be considered advantages.

Devry Education Group

10) Identify what you believe to be the three weeks aspects of the corporation. Is
it likely these three weakness can be overcome in the next few years?
11) Are you optimistic or pessimistic concerning the future of the corporation?
What specific corporate or industry characteristics influence your opinion?
12) Would you invest in the capital stock or bonds (if applicable) of this
corporation if you had sufficient funds? Would you rather invest in one of the
corporations competitors? What are the reasons for your decision?