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Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-1.64 (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 -1.64 signals that the company is a manipulator.

BMRN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.43   Max: 3.79
Current: -1.64

-4.43
3.79

During the past 13 years, the highest Beneish M-Score of Biomarin Pharmaceutical Inc was 3.79. The lowest was -4.43. And the median was -2.32.


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 * 0.9615+0.528 * 1.0092+0.404 * 2.318+0.892 * 1.1876+0.115 * 1.2829
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1197+4.679 * 0.0219-0.327 * 0.8368
=-1.64

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $165.0 Mil.
Revenue was 227.936 + 208.904 + 250.523 + 203.264 = $890.6 Mil.
Gross Profit was 185.338 + 172.185 + 210.645 + 170.451 = $738.6 Mil.
Total Current Assets was $1,089.6 Mil.
Total Assets was $3,729.4 Mil.
Property, Plant and Equipment(Net PPE) was $704.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.2 Mil.
Selling, General & Admin. Expense(SGA) was $402.3 Mil.
Total Current Liabilities was $445.5 Mil.
Long-Term Debt was $662.3 Mil.
Net Income was 68.617 + -90.926 + -81.989 + -67.501 = $-171.8 Mil.
Non Operating Income was -7.722 + -7.631 + -9.325 + -7.026 = $-31.7 Mil.
Cash Flow from Operations was -68.037 + -2.85 + -12.991 + -137.811 = $-221.7 Mil.
Accounts Receivable was $144.5 Mil.
Revenue was 230.068 + 176.549 + 191.787 + 151.552 = $750.0 Mil.
Gross Profit was 191.747 + 146.629 + 160.577 + 128.736 = $627.7 Mil.
Total Current Assets was $1,397.6 Mil.
Total Assets was $2,475.4 Mil.
Property, Plant and Equipment(Net PPE) was $523.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.9 Mil.
Selling, General & Admin. Expense(SGA) was $302.5 Mil.
Total Current Liabilities was $235.7 Mil.
Long-Term Debt was $642.9 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)
=(164.959 / 890.627) / (144.472 / 749.956)
=0.18521671 / 0.19264063
=0.9615

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)
=(172.185 / 749.956) / (185.338 / 890.627)
=0.83696777 / 0.82932473
=1.0092

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 - (1089.639 + 704.207) / 3729.368) / (1 - (1397.64 + 523.516) / 2475.379)
=0.51899464 / 0.2238942
=2.318

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
=890.627 / 749.956
=1.1876

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))
=(45.871 / (45.871 + 523.516)) / (47.187 / (47.187 + 704.207))
=0.08056208 / 0.06279928
=1.2829

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)
=(402.271 / 890.627) / (302.53 / 749.956)
=0.45167169 / 0.403397
=1.1197

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)
=((662.286 + 445.457) / 3729.368) / ((642.902 + 235.739) / 2475.379)
=0.29703237 / 0.35495211
=0.8368

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
=(-171.799 - -31.704 - -221.689) / 3729.368
=0.0219

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 -1.64 signals that the company is likely to 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.76310.80151.31161.23691.01581.03240.9170.98620.89550.9636
GMI 1.00151.05561.03171.03250.98011.00440.99150.98930.99790.9976
AQI 0.3490.72580.42035.6211.5571.02190.79361.01820.63812.318
SGI 3.28061.44382.43861.0951.1591.1731.13451.09541.36931.1849
DEPI 1.198612.67650.11321.29740.85750.93920.86141.06531.31851.5572
SGAI 0.35961.09530.56361.06511.05330.98570.99581.08420.93761.1236
LVGI 0.44921.17681.0090.90670.58260.92740.9321.18370.94960.8368
TATA 0.0049-0.01450.0511-0.08870.1607-0.0523-0.0822-0.0462-0.02390.0238
M-score -0.59-1.15-0.92-0.65-1.25-2.51-2.90-2.69-2.44-1.61

Biomarin Pharmaceutical Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.98620.82140.88940.77870.89681.13541.10910.91640.96150.8923
GMI 0.97350.96740.97490.96321.00221.00771.00641.01641.00921.0129
AQI 1.01820.75630.74780.9360.63811.55531.83051.4182.3181.2222
SGI 1.09541.11741.19491.24971.36731.40131.37211.33891.18761.1527
DEPI 1.33031.78151.92611.98271.25810.94040.9170.93511.28291.4472
SGAI 1.08421.07221.07881.00510.94010.97911.02641.05571.11971.0732
LVGI 1.18372.19882.21462.33120.94960.78270.79350.82520.83681.0536
TATA -0.0446-0.0459-0.0485-0.02-0.01630.01140.0008-0.02780.0219-0.0221
M-score -2.66-3.18-3.05-2.92-2.41-1.65-1.65-2.17-1.64-2.43
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