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Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

BMRN' s Beneish M-Score Range Over the Past 10 Years
Min: -5.04   Max: 7.17
Current: -2.85

-5.04
7.17

During the past 13 years, the highest Beneish M-Score of Biomarin Pharmaceutical Inc was 7.17. The lowest was -5.04. And the median was -2.12.


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 * 1.0161+0.528 * 1.0232+0.404 * 0.7957+0.892 * 1.1326+0.115 * 0.7557
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0125+4.679 * -0.0731-0.327 * 1.1831
=-2.85

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $214.2 Mil.
Revenue was 300.131 + 236.736 + 227.936 + 208.904 = $973.7 Mil.
Gross Profit was 248.514 + 193.618 + 185.338 + 172.185 = $799.7 Mil.
Total Current Assets was $1,105.9 Mil.
Total Assets was $3,087.3 Mil.
Property, Plant and Equipment(Net PPE) was $724.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $73.4 Mil.
Selling, General & Admin. Expense(SGA) was $422.8 Mil.
Total Current Liabilities was $364.6 Mil.
Long-Term Debt was $645.7 Mil.
Net Income was -423.56 + -85.142 + 68.617 + -90.926 = $-531.0 Mil.
Non Operating Income was -1.552 + 0.063 + -7.722 + -7.631 = $-16.8 Mil.
Cash Flow from Operations was -46.02 + -171.553 + -68.037 + -2.85 = $-288.5 Mil.
Accounts Receivable was $186.1 Mil.
Revenue was 250.135 + 202.92 + 230.068 + 176.549 = $859.7 Mil.
Gross Profit was 212.072 + 171.922 + 191.747 + 146.629 = $722.4 Mil.
Total Current Assets was $1,213.9 Mil.
Total Assets was $3,648.7 Mil.
Property, Plant and Equipment(Net PPE) was $568.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $42.5 Mil.
Selling, General & Admin. Expense(SGA) was $368.7 Mil.
Total Current Liabilities was $347.7 Mil.
Long-Term Debt was $661.5 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)
=(214.158 / 973.707) / (186.083 / 859.672)
=0.21994091 / 0.21645814
=1.0161

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)
=(722.37 / 859.672) / (799.655 / 973.707)
=0.8402856 / 0.82124808
=1.0232

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 - (1105.946 + 724.494) / 3087.304) / (1 - (1213.929 + 568.051) / 3648.689)
=0.4071073 / 0.51161088
=0.7957

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
=973.707 / 859.672
=1.1326

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))
=(42.454 / (42.454 + 568.051)) / (73.42 / (73.42 + 724.494))
=0.06953915 / 0.09201493
=0.7557

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)
=(422.828 / 973.707) / (368.692 / 859.672)
=0.43424562 / 0.4288752
=1.0125

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)
=((645.685 + 364.58) / 3087.304) / ((661.492 + 347.704) / 3648.689)
=0.32723211 / 0.2765914
=1.1831

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
=(-531.011 - -16.842 - -288.46) / 3087.304
=-0.0731

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 -2.85 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.76310.80151.31161.23691.01581.03240.9170.98620.89760.9614
GMI 1.00151.05561.03171.03250.98011.00440.99150.97351.00241.0092
AQI 0.3490.72580.42035.6211.5571.02190.79361.01820.63812.318
SGI 3.28061.44382.43861.0951.1591.1731.13451.09541.36611.1877
DEPI 1.380310.7240.11331.29640.85750.9640.85491.33031.25811.2829
SGAI 0.35961.09530.56361.06511.05330.98570.99581.08420.93981.121
LVGI 0.44921.17681.0090.90670.58260.92740.9321.18370.94960.8368
TATA 0.0094-0.01450.0511-0.08870.1603-0.0521-0.0822-0.0446-0.01360.0238
M-score -0.55-1.37-0.92-0.65-1.25-2.51-2.90-2.66-2.40-1.63

Biomarin Pharmaceutical Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.82140.88940.77870.89681.13591.110.91710.96230.89231.0161
GMI 0.96740.97490.96321.00221.00511.00151.01161.00441.01331.0232
AQI 0.75630.74780.9360.63811.55531.83051.4182.3181.22220.7957
SGI 1.11741.19491.24971.36731.40061.37091.33791.18661.15271.1326
DEPI 1.78151.92611.98271.25811.00961.06230.93511.28291.04760.7557
SGAI 1.07221.07881.00510.94010.97951.02721.05661.12061.07321.0125
LVGI 2.19882.21462.33120.94960.78270.79350.82520.83681.05361.1831
TATA -0.0459-0.0485-0.02-0.01630.0095-0.0012-0.02980.020.0247-0.0731
M-score -3.18-3.05-2.92-2.41-1.65-1.65-2.18-1.65-2.26-2.85
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