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Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-2.19 (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 -2.19 signals that the company is a manipulator.

BMRN' s Beneish M-Score Range Over the Past 10 Years
Min: -5.24   Max: 7.17
Current: -2.19

-5.24
7.17

During the past 13 years, the highest Beneish M-Score of Biomarin Pharmaceutical Inc was 7.17. The lowest was -5.24. 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 * 0.9146+0.528 * 1.013+0.404 * 1.418+0.892 * 1.3416+0.115 * 0.9928
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0537+4.679 * -0.0349-0.327 * 0.8252
=-2.19

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $148.9 Mil.
Revenue was 208.904 + 250.523 + 203.264 + 231.824 = $894.5 Mil.
Gross Profit was 172.185 + 210.645 + 170.451 + 186.006 = $739.3 Mil.
Total Current Assets was $1,175.6 Mil.
Total Assets was $3,624.9 Mil.
Property, Plant and Equipment(Net PPE) was $604.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $62.1 Mil.
Selling, General & Admin. Expense(SGA) was $388.1 Mil.
Total Current Liabilities was $390.5 Mil.
Long-Term Debt was $667.8 Mil.
Net Income was -90.926 + -81.989 + -67.501 + -69.797 = $-310.2 Mil.
Non Operating Income was -7.631 + -9.325 + -7.026 + 20.877 = $-3.1 Mil.
Cash Flow from Operations was -2.85 + -12.991 + -137.811 + -27.024 = $-180.7 Mil.
Accounts Receivable was $121.4 Mil.
Revenue was 176.549 + 191.787 + 151.552 + 146.873 = $666.8 Mil.
Gross Profit was 146.629 + 160.577 + 128.736 + 122.252 = $558.2 Mil.
Total Current Assets was $1,077.8 Mil.
Total Assets was $2,440.4 Mil.
Property, Plant and Equipment(Net PPE) was $486.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $49.6 Mil.
Selling, General & Admin. Expense(SGA) was $274.6 Mil.
Total Current Liabilities was $206.6 Mil.
Long-Term Debt was $656.9 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)
=(148.949 / 894.515) / (121.395 / 666.761)
=0.1665137 / 0.18206674
=0.9146

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)
=(210.645 / 666.761) / (172.185 / 894.515)
=0.83717254 / 0.82646686
=1.013

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 - (1175.589 + 604.513) / 3624.853) / (1 - (1077.819 + 486.741) / 2440.433)
=0.50891747 / 0.35890065
=1.418

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
=894.515 / 666.761
=1.3416

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))
=(49.641 / (49.641 + 486.741)) / (62.145 / (62.145 + 604.513))
=0.09254785 / 0.09321871
=0.9928

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)
=(388.132 / 894.515) / (274.571 / 666.761)
=0.43390217 / 0.41179823
=1.0537

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)
=((667.793 + 390.491) / 3624.853) / ((656.884 + 206.55) / 2440.433)
=0.29195225 / 0.35380361
=0.8252

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
=(-310.213 - -3.105 - -180.676) / 3624.853
=-0.0349

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 -2.19 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.05150.76310.80151.31161.23691.01581.03240.9170.98620.8955
GMI 0.87781.00151.05561.03171.03250.98011.00440.99150.98930.9979
AQI 1.00860.3490.72580.42035.6211.5571.02190.79361.01820.6195
SGI 1.3773.28061.44382.43861.0951.1591.1731.13451.09541.3693
DEPI 1.14951.380310.7240.11331.29640.85750.93920.87751.04581.3185
SGAI 0.80250.35961.09530.56361.06511.05330.98570.99581.08420.9376
LVGI 1.01360.44921.17681.0090.90670.58260.92740.9321.18370.96
TATA -0.1380.0094-0.01450.0511-0.08870.1603-0.0523-0.0822-0.0462-0.0238
M-score -2.76-0.55-1.37-0.92-0.65-1.25-2.51-2.90-2.69-2.45

Biomarin Pharmaceutical Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.00530.95010.98620.82140.88940.77870.89471.13291.10680.9146
GMI 0.99551.00110.98930.98240.98870.97590.99771.00311.00241.013
AQI 0.98151.04661.01820.75630.74780.9360.61951.55531.83051.418
SGI 1.13611.11941.09541.11741.19491.24971.37051.40431.37491.3416
DEPI 0.92950.93791.04581.39561.51431.56621.31850.99790.97410.9928
SGAI 0.94031.01931.08421.07221.07881.00510.93790.97691.02431.0537
LVGI 0.54220.51741.18372.19882.21462.33120.960.78270.79350.8252
TATA -0.0584-0.0716-0.046-0.0475-0.05-0.0215-0.02650.0044-0.0063-0.0349
M-score -2.48-2.59-2.69-3.23-3.10-2.97-2.46-1.68-1.68-2.19
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