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Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-1.66 (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 -1.66 signals that the company is a manipulator.

BMRN' s 10-Year Beneish M-Score Range
Min: -5.36   Max: 7.17
Current: -1.66

-5.36
7.17

During the past 13 years, the highest Beneish M-Score of Biomarin Pharmaceutical Inc was 7.17. The lowest was -5.36. 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 * 1.1338+0.528 * 1.0033+0.404 * 1.5553+0.892 * 1.4031+0.115 * 0.9979
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9774+4.679 * 0.0081-0.327 * 0.7827
=-1.66

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $175.7 Mil.
Revenue was 203.264 + 230.854 + 176.847 + 191.787 = $802.8 Mil.
Gross Profit was 170.451 + 185.036 + 146.927 + 160.577 = $663.0 Mil.
Total Current Assets was $1,522.7 Mil.
Total Assets was $3,658.7 Mil.
Property, Plant and Equipment(Net PPE) was $538.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $59.1 Mil.
Selling, General & Admin. Expense(SGA) was $335.1 Mil.
Total Current Liabilities was $305.5 Mil.
Long-Term Debt was $694.5 Mil.
Net Income was -67.501 + -69.797 + 7.445 + -33.502 = $-163.4 Mil.
Non Operating Income was -7.026 + 0.572 + -0.299 + -1.36 = $-8.1 Mil.
Cash Flow from Operations was -137.811 + -26.777 + -8.356 + -11.913 = $-184.9 Mil.
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.



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)
=(175.738 / 802.752) / (110.462 / 572.109)
=0.21891942 / 0.19307859
=1.1338

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)
=(185.036 / 572.109) / (170.451 / 802.752)
=0.82860259 / 0.82589766
=1.0033

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 - (1522.728 + 538.117) / 3658.686) / (1 - (1246.41 + 437.066) / 2340.728)
=0.43672537 / 0.28078957
=1.5553

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
=802.752 / 572.109
=1.4031

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))
=(47.92 / (47.92 + 437.066)) / (59.137 / (59.137 + 538.117))
=0.09880698 / 0.09901482
=0.9979

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)
=(335.131 / 802.752) / (244.375 / 572.109)
=0.41747763 / 0.42714762
=0.9774

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)
=((694.543 + 305.506) / 3658.686) / ((661.419 + 156.038) / 2340.728)
=0.27333556 / 0.34923195
=0.7827

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
=(-163.355 - -8.113 - -184.857) / 3658.686
=0.0081

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 -1.66 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.9170.99621.00530.95010.98620.82140.88940.77840.89551.1338
GMI 0.99151.00850.99551.00110.98930.98240.98870.97580.99791.0033
AQI 0.79360.92720.98151.04661.01820.75630.74780.9360.61951.5553
SGI 1.13451.14151.13611.11941.09541.11741.19491.25021.36931.4031
DEPI 0.87750.91380.92950.93791.04581.39561.51371.56571.31850.9979
SGAI 0.9960.9950.94031.01931.08421.07221.07881.00470.93830.9774
LVGI 0.9320.46330.54220.51741.18372.19882.21462.33120.960.7827
TATA -0.0822-0.0686-0.0584-0.0716-0.046-0.0475-0.0498-0.0242-0.02110.0081
M-score -2.90-2.54-2.48-2.59-2.69-3.23-3.10-2.98-2.44-1.66
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