Switch to:
Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-3.24 (As of Today)

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.

Biomarin Pharmaceutical Inc has a M-score of -3.24 suggests that the company is not a manipulator.

BMRN' s 10-Year Beneish M-Score Range
Min: -5.48   Max: 7.31
Current: -3.24

-5.48
7.31

During the past 13 years, the highest Beneish M-Score of Biomarin Pharmaceutical Inc was 7.31. The lowest was -5.48. And the median was -2.11.


Definition

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 Biomarin Pharmaceutical 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 * 0.8214+0.528 * 0.9824+0.404 * 0.7563+0.892 * 1.1174+0.115 * 1.3951
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0722+4.679 * -0.05-0.327 * 2.1988
=-3.24

* 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 $110.5 Mil.
Revenue was 151.552 + 146.873 + 136.874 + 136.81 = $572.1 Mil.
Gross Profit was 128.736 + 122.252 + 108.82 + 114.243 = $474.1 Mil.
Total Current Assets was $1,246.4 Mil.
Total Assets was $2,340.7 Mil.
Property, Plant and Equipment(Net PPE) was $437.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.9 Mil.
Selling, General & Admin. Expense(SGA) was $244.4 Mil.
Total Current Liabilities was $156.0 Mil.
Long-Term Debt was $661.4 Mil.
Net Income was -38.115 + -61.99 + -53.02 + -21.533 = $-174.7 Mil.
Non Operating Income was -0.491 + -0.613 + -1.64 + -0.286 = $-3.0 Mil.
Cash Flow from Operations was -26.874 + -11.296 + -9.492 + -6.817 = $-54.5 Mil.
Accounts Receivable was $120.3 Mil.
Revenue was 127.928 + 131.938 + 128.117 + 124.019 = $512.0 Mil.
Gross Profit was 107.428 + 105.406 + 103.498 + 100.445 = $416.8 Mil.
Total Current Assets was $723.0 Mil.
Total Assets was $1,598.3 Mil.
Property, Plant and Equipment(Net PPE) was $281.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.1 Mil.
Selling, General & Admin. Expense(SGA) was $204.0 Mil.
Total Current Liabilities was $144.0 Mil.
Long-Term Debt was $109.8 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(110.462 / 572.109) / (120.345 / 512.002)
=0.19307859 / 0.23504791
=0.8214

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)
=(122.252 / 512.002) / (128.736 / 572.109)
=0.8140144 / 0.82860259
=0.9824

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1246.41 + 437.066) / 2340.728) / (1 - (723.024 + 281.865) / 1598.293)
=0.28078957 / 0.3712736
=0.7563

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.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=572.109 / 512.002
=1.1174

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))
=(45.085 / (45.085 + 281.865)) / (47.939 / (47.939 + 437.066))
=0.1378957 / 0.09884228
=1.3951

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)
=(244.375 / 572.109) / (203.975 / 512.002)
=0.42714762 / 0.39838712
=1.0722

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)
=((661.419 + 156.038) / 2340.728) / ((109.849 + 144.008) / 1598.293)
=0.34923195 / 0.15883008
=2.1988

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
=(-174.658 - -3.03 - -54.479) / 2340.728
=-0.05

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.

Biomarin Pharmaceutical Inc has a M-score of -3.24 suggests that the company will not be a manipulator.


Related Terms

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Biomarin Pharmaceutical Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 11.05150.76310.80151.31161.3561.00480.9520.9170.9862
GMI 1.26910.87781.00151.05561.03171.03250.98011.00440.99150.9893
AQI 19.58281.00860.3490.72580.42035.6211.5571.02190.79361.0225
SGI 1.54061.3773.28061.44382.43861.0951.1591.1731.13451.0954
DEPI 1.14641.14951.380310.7240.11331.29640.85750.93920.87751.0458
SGAI 1.69560.80250.35961.09530.56361.06511.05330.98570.99581.0842
LVGI 2.381.01360.44921.17681.0090.90670.58260.92740.9321.1809
TATA -0.2797-0.1380.0094-0.01450.0511-0.08870.1603-0.0523-0.0822-0.0461
M-score 3.79-2.76-0.55-1.37-0.92-0.55-1.26-2.58-2.90-2.69

Biomarin Pharmaceutical Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.9520.85260.85811.00020.9170.99621.00530.95010.98620.8214
GMI 1.00440.99420.99510.98960.99151.00850.99551.00110.98930.9824
AQI 1.02190.93320.88690.87570.79360.92720.98151.04661.02250.7563
SGI 1.1731.11921.10131.09541.13451.14151.13611.11941.09541.1174
DEPI 0.93920.9860.99660.84180.87750.91380.92460.93211.04581.3951
SGAI 0.98551.01071.06241.03470.9960.9950.94031.01931.08421.0722
LVGI 0.92740.95560.80880.88030.9320.46330.54220.51741.18092.1988
TATA -0.0523-0.0648-0.063-0.0588-0.0822-0.0686-0.0584-0.0716-0.0459-0.05
M-score -2.58-2.83-2.81-2.71-2.90-2.54-2.49-2.59-2.69-3.24
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide