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Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

BMRN' s 10-Year Beneish M-Score Range
Min: -4.17   Max: 3.79
Current: -2.45

-4.17
3.79

During the past 13 years, the highest Beneish M-Score of Biomarin Pharmaceutical Inc was 3.79. The lowest was -4.17. And the median was -2.48.


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 * 0.8955+0.528 * 0.9979+0.404 * 0.6195+0.892 * 1.3693+0.115 * 1.3185
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9383+4.679 * -0.0236-0.327 * 0.96
=-2.45

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $144.5 Mil.
Revenue was 230.854 + 176.847 + 191.787 + 151.552 = $751.0 Mil.
Gross Profit was 185.036 + 146.927 + 160.577 + 128.736 = $621.3 Mil.
Total Current Assets was $1,425.6 Mil.
Total Assets was $2,490.5 Mil.
Property, Plant and Equipment(Net PPE) was $523.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $56.7 Mil.
Selling, General & Admin. Expense(SGA) was $302.4 Mil.
Total Current Liabilities was $235.7 Mil.
Long-Term Debt was $658.0 Mil.
Net Income was -69.797 + 7.445 + -33.502 + -38.115 = $-134.0 Mil.
Non Operating Income was 0.572 + -0.299 + -1.36 + -0.491 = $-1.6 Mil.
Cash Flow from Operations was -26.777 + -8.356 + -11.532 + -26.874 = $-73.5 Mil.
Accounts Receivable was $117.8 Mil.
Revenue was 146.873 + 136.874 + 136.81 + 127.928 = $548.5 Mil.
Gross Profit was 122.252 + 108.82 + 114.243 + 107.428 = $452.7 Mil.
Total Current Assets was $1,137.4 Mil.
Total Assets was $2,244.1 Mil.
Property, Plant and Equipment(Net PPE) was $319.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.3 Mil.
Selling, General & Admin. Expense(SGA) was $235.4 Mil.
Total Current Liabilities was $183.3 Mil.
Long-Term Debt was $655.6 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)
=(144.472 / 751.04) / (117.822 / 548.485)
=0.19236259 / 0.21481353
=0.8955

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)
=(146.927 / 548.485) / (185.036 / 751.04)
=0.82544281 / 0.82722092
=0.9979

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 - (1425.629 + 523.516) / 2490.453) / (1 - (1137.418 + 319.316) / 2244.06)
=0.21735323 / 0.35084891
=0.6195

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
=751.04 / 548.485
=1.3693

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))
=(47.264 / (47.264 + 319.316)) / (56.744 / (56.744 + 523.516))
=0.12893229 / 0.09779065
=1.3185

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)
=(302.394 / 751.04) / (235.356 / 548.485)
=0.40263368 / 0.42910198
=0.9383

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)
=((657.976 + 235.739) / 2490.453) / ((655.566 + 183.271) / 2244.06)
=0.3588564 / 0.37380329
=0.96

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
=(-133.969 - -1.578 - -73.539) / 2490.453
=-0.0236

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 -2.45 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

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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.00020.9170.99621.00530.95010.98620.82140.88940.77840.8955
GMI 0.98960.99151.00850.99551.00110.98930.98240.98870.97580.9979
AQI 0.87570.79360.92720.98151.04661.01820.75630.74780.9360.6195
SGI 1.09541.13451.14151.13611.11941.09541.11741.19491.25021.3693
DEPI 0.84180.87750.91380.92950.93791.04581.39511.51371.56571.3185
SGAI 1.03470.9960.9950.94031.01931.08421.07221.07881.00470.9383
LVGI 0.88030.9320.46330.54220.51741.18372.19882.21462.33120.96
TATA -0.0588-0.0822-0.0686-0.0584-0.0716-0.046-0.05-0.0526-0.0268-0.0236
M-score -2.71-2.90-2.54-2.48-2.59-2.69-3.24-3.11-3.00-2.45
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