ALKS 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 less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
During the past 13 years, the highest Beneish M-Score of Alkermes PLC was 0.44. The lowest was -4.25. And the median was -2.45.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Alkermes PLC 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 * 1.1593||+||0.528 * 0.9441||+||0.404 * 1.1018||+||0.892 * 1.0857||+||0.115 * 1.0397|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.2037||+||4.679 * -0.1092||-||0.327 * 1.0698|
|This Year (Sep16) TTM:||Last Year (Sep15) TTM:|
|Accounts Receivable was $177.4 Mil.|
Revenue was 180.241 + 195.165 + 156.774 + 163.098 = $695.3 Mil.
Gross Profit was 144.785 + 161.167 + 129.063 + 128.307 = $563.3 Mil.
Total Current Assets was $807.3 Mil.
Total Assets was $1,707.4 Mil.
Property, Plant and Equipment(Net PPE) was $262.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $91.4 Mil.
Selling, General & Admin. Expense(SGA) was $364.5 Mil.
Total Current Liabilities was $190.2 Mil.
Long-Term Debt was $282.6 Mil.
Net Income was -62.687 + -47.193 + -77.423 + -69.382 = $-256.7 Mil.
Non Operating Income was -1.752 + 1.733 + 2.149 + -3.427 = $-1.3 Mil.
Cash Flow from Operations was 14.732 + -28.878 + -57.214 + 2.415 = $-68.9 Mil.
|Accounts Receivable was $141.0 Mil.
Revenue was 152.653 + 151.37 + 161.214 + 175.161 = $640.4 Mil.
Gross Profit was 118.847 + 120.952 + 121.24 + 128.793 = $489.8 Mil.
Total Current Assets was $1,000.4 Mil.
Total Assets was $1,881.0 Mil.
Property, Plant and Equipment(Net PPE) was $242.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $89.2 Mil.
Selling, General & Admin. Expense(SGA) was $278.9 Mil.
Total Current Liabilities was $200.4 Mil.
Long-Term Debt was $286.5 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(177.446 / 695.278)||/||(140.987 / 640.398)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(489.832 / 640.398)||/||(563.322 / 695.278)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (807.262 + 262.181) / 1707.376)||/||(1 - (1000.423 + 242.675) / 1880.955)|
4. SGI = Sales Growth Index
Ratio of sales 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.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation 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))|
|=||(89.183 / (89.183 + 242.675))||/||(91.386 / (91.386 + 262.181))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses 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)|
|=||(364.457 / 695.278)||/||(278.89 / 640.398)|
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$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((282.576 + 190.24) / 1707.376)||/||((286.512 + 200.402) / 1880.955)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-256.685 - -1.297||-||-68.945)||/||1707.376|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Alkermes PLC has a M-score of -2.81 suggests that the company will not be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Alkermes PLC Annual Data
Alkermes PLC Quarterly Data