ARRY 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.
Array BioPharma Inc has a M-score of -1.38 signals that the company is a manipulator.
During the past 13 years, the highest Beneish M-Score of Array BioPharma Inc was 349.55. The lowest was -10.60. And the median was -2.68.
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 Array BioPharma Inc 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||+||0.528 * 1.6873||+||0.404 * 2.8864||+||0.892 * 0.9484||+||0.115 * 0.8097|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.19||+||4.679 * 0.0004||-||0.327 * 0.7898|
* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.
|This Year (Mar14) TTM:||Last Year (Mar13) TTM:|
|Accounts Receivable was $4.43 Mil.|
Revenue was 7.773 + 14.066 + 14.228 + 25.415 = $61.48 Mil.
Gross Profit was -2.983 + 0.956 + 3.57 + 18.409 = $19.95 Mil.
Total Current Assets was $118.07 Mil.
Total Assets was $135.16 Mil.
Property, Plant and Equipment(Net PPE) was $7.84 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.58 Mil.
Selling, General & Admin. Expense(SGA) was $21.29 Mil.
Total Current Liabilities was $45.86 Mil.
Long-Term Debt was $102.68 Mil.
Net Income was -24.932 + -16.408 + -15.68 + -17.651 = $-74.67 Mil.
Non Operating Income was 0 + 0 + 0 + -11.197 = $-11.20 Mil.
Cash Flow from Operations was -15.129 + -33.203 + -1.112 + -14.083 = $-63.53 Mil.
|Accounts Receivable was $0.00 Mil.
Revenue was 9.955 + 18.377 + 15.833 + 20.664 = $64.83 Mil.
Gross Profit was 1.331 + 10.468 + 9.294 + 14.405 = $35.50 Mil.
Total Current Assets was $94.16 Mil.
Total Assets was $107.43 Mil.
Property, Plant and Equipment(Net PPE) was $10.72 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.56 Mil.
Selling, General & Admin. Expense(SGA) was $18.87 Mil.
Total Current Liabilities was $54.14 Mil.
Long-Term Debt was $95.35 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)|
|=||(4.433 / 61.482)||/||(0 / 64.829)|
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)|
|=||(0.956 / 64.829)||/||(-2.983 / 61.482)|
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 - (118.068 + 7.838) / 135.155)||/||(1 - (94.164 + 10.72) / 107.431)|
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))|
|=||(4.561 / (4.561 + 10.72))||/||(4.576 / (4.576 + 7.838))|
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)|
|=||(21.29 / 61.482)||/||(18.865 / 64.829)|
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)|
|=||((102.675 + 45.864) / 135.155)||/||((95.349 + 54.138) / 107.431)|
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|
|=||(-74.671 - -11.197||-||-63.527)||/||135.155|
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.
Array BioPharma Inc has a M-score of -1.38 signals that the company is likely to 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
Array BioPharma Inc Annual Data
Array BioPharma Inc Quarterly Data