Switch to:
Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-3.11 (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 -3.11 suggests that the company is not a manipulator.

BMRN' s 10-Year Beneish M-Score Range
Min: -5.36   Max: 7.17
Current: -3.11

-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 -1.95.


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 * 0.8894+0.528 * 0.9887+0.404 * 0.7478+0.892 * 1.1949+0.115 * 1.5137
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0788+4.679 * -0.0526-0.327 * 2.2146
=-3.11

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $122.3 Mil.
Revenue was 191.787 + 151.552 + 146.873 + 136.874 = $627.1 Mil.
Gross Profit was 160.577 + 128.736 + 122.252 + 108.82 = $520.4 Mil.
Total Current Assets was $1,220.2 Mil.
Total Assets was $2,345.7 Mil.
Property, Plant and Equipment(Net PPE) was $469.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $48.7 Mil.
Selling, General & Admin. Expense(SGA) was $261.8 Mil.
Total Current Liabilities was $166.7 Mil.
Long-Term Debt was $650.9 Mil.
Net Income was -33.502 + -38.115 + -61.99 + -53.02 = $-186.6 Mil.
Non Operating Income was -1.36 + -0.491 + -0.613 + -1.64 = $-4.1 Mil.
Cash Flow from Operations was -11.532 + -26.874 + -11.296 + -9.492 = $-59.2 Mil.
Accounts Receivable was $115.1 Mil.
Revenue was 136.81 + 127.928 + 131.938 + 128.117 = $524.8 Mil.
Gross Profit was 114.243 + 107.428 + 105.406 + 103.498 = $430.6 Mil.
Total Current Assets was $720.9 Mil.
Total Assets was $1,601.5 Mil.
Property, Plant and Equipment(Net PPE) was $282.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.8 Mil.
Selling, General & Admin. Expense(SGA) was $203.1 Mil.
Total Current Liabilities was $142.2 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)
=(122.282 / 627.086) / (115.063 / 524.793)
=0.19500037 / 0.21925407
=0.8894

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)
=(128.736 / 524.793) / (160.577 / 627.086)
=0.82046636 / 0.8298463
=0.9887

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 - (1220.227 + 469.862) / 2345.685) / (1 - (720.92 + 282.002) / 1601.52)
=0.27949021 / 0.37376867
=0.7478

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
=627.086 / 524.793
=1.1949

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))
=(46.78 / (46.78 + 282.002)) / (48.749 / (48.749 + 469.862))
=0.14228273 / 0.09399916
=1.5137

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)
=(261.808 / 627.086) / (203.092 / 524.793)
=0.41749935 / 0.38699449
=1.0788

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)
=((650.872 + 166.72) / 2345.685) / ((109.822 + 142.241) / 1601.52)
=0.34855149 / 0.15738985
=2.2146

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
=(-186.627 - -4.104 - -59.194) / 2345.685
=-0.0526

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 -3.11 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 11.05150.76310.80151.31161.3560.92651.03240.9170.9862
GMI 1.26910.87781.00151.05561.03171.03250.98011.00440.99150.9893
AQI 19.58281.00860.3490.72580.42035.6211.5571.01980.82660.9836
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 2.381.01360.44921.17681.0090.90670.58260.92880.91121.206
TATA -0.2797-0.1380.0094-0.01450.0511-0.08870.1607-0.0524-0.0805-0.0461
M-score 3.79-2.76-0.55-1.37-0.92-0.55-1.33-2.51-2.87-2.71

Biomarin Pharmaceutical Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.89040.85811.00020.9170.99621.00530.95010.98620.82140.8894
GMI 0.99420.99510.98960.99151.00850.99551.00110.98930.98240.9887
AQI 0.93320.88690.87570.8250.92720.98151.04660.98360.75630.7478
SGI 1.11921.10131.09541.13451.14151.13611.11941.09541.11741.1949
DEPI 0.9860.99660.84180.87750.91380.92950.93211.04581.39511.5137
SGAI 1.01071.06241.03470.9960.9950.94031.01931.08421.07221.0788
LVGI 0.95560.80880.88030.91260.46330.54220.51741.2062.19882.2146
TATA -0.0649-0.0631-0.0588-0.0805-0.0686-0.0584-0.0716-0.0459-0.05-0.0526
M-score -2.80-2.81-2.71-2.87-2.54-2.48-2.59-2.71-3.24-3.11
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