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Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-2.99 (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 -2.99 suggests that the company is not a manipulator.

BMRN' s 10-Year Beneish M-Score Range
Min: -5.36   Max: 7.31
Current: -2.99

-5.36
7.31

During the past 13 years, the highest Beneish M-Score of Biomarin Pharmaceutical Inc was 7.31. 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 * 0.7784+0.528 * 0.9758+0.404 * 0.936+0.892 * 1.2502+0.115 * 1.6122
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0047+4.679 * -0.0268-0.327 * 2.3312
=-2.99

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $121.4 Mil.
Revenue was 176.847 + 191.787 + 151.552 + 146.873 = $667.1 Mil.
Gross Profit was 146.927 + 160.577 + 128.736 + 122.252 = $558.5 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 $49.3 Mil.
Selling, General & Admin. Expense(SGA) was $274.6 Mil.
Total Current Liabilities was $206.6 Mil.
Long-Term Debt was $656.9 Mil.
Net Income was 7.445 + -33.502 + -38.115 + -61.99 = $-126.2 Mil.
Non Operating Income was -0.299 + -1.36 + -0.491 + -0.613 = $-2.8 Mil.
Cash Flow from Operations was -8.356 + -11.532 + -26.874 + -11.296 = $-58.1 Mil.
Accounts Receivable was $124.7 Mil.
Revenue was 136.874 + 136.81 + 127.928 + 131.938 = $533.6 Mil.
Gross Profit was 108.82 + 114.243 + 107.428 + 105.406 = $435.9 Mil.
Total Current Assets was $713.5 Mil.
Total Assets was $1,620.5 Mil.
Property, Plant and Equipment(Net PPE) was $285.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $49.7 Mil.
Selling, General & Admin. Expense(SGA) was $218.6 Mil.
Total Current Liabilities was $167.6 Mil.
Long-Term Debt was $78.3 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)
=(121.395 / 667.059) / (124.745 / 533.55)
=0.1819854 / 0.23380189
=0.7784

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)
=(160.577 / 533.55) / (146.927 / 667.059)
=0.81697498 / 0.83724528
=0.9758

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 - (1077.819 + 486.741) / 2440.433) / (1 - (713.479 + 285.664) / 1620.53)
=0.35890065 / 0.38344677
=0.936

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
=667.059 / 533.55
=1.2502

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))
=(49.737 / (49.737 + 285.664)) / (49.305 / (49.305 + 486.741))
=0.14829115 / 0.09197905
=1.6122

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)
=(274.571 / 667.059) / (218.596 / 533.55)
=0.41161427 / 0.40970106
=1.0047

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)
=((656.884 + 206.55) / 2440.433) / ((78.31 + 167.633) / 1620.53)
=0.35380361 / 0.15176701
=2.3312

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
=(-126.162 - -2.763 - -58.058) / 2440.433
=-0.0268

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 -2.99 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 11.05150.76310.80151.31161.23691.01581.03240.9170.9862
GMI 1.26910.87781.00151.05561.03171.03250.98011.00440.99150.9893
AQI 19.56091.00970.3490.72580.42035.6211.5571.01980.82660.9836
SGI 1.54061.3773.28061.44382.43861.0951.1591.1731.13451.0954
DEPI 1.14641.11991.198612.67650.11321.29740.85750.93920.86141.0653
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 -0.2193-0.120.0049-0.01450.0511-0.08870.1607-0.0524-0.0805-0.0461
M-score 4.06-2.68-0.59-1.15-0.92-0.65-1.25-2.51-2.87-2.71

Biomarin Pharmaceutical Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.85811.00020.9170.99621.00530.95010.98620.82140.88940.7784
GMI 0.99510.98960.99151.00850.99551.00110.98930.98240.98870.9758
AQI 0.88690.87570.82660.92720.98151.04660.98360.75630.74780.936
SGI 1.10131.09541.13451.14151.13611.11941.09541.11741.19491.2502
DEPI 0.99660.84180.86140.89370.90870.91671.06531.43221.55661.6122
SGAI 1.06241.03470.9960.9950.94031.01931.08421.07221.07881.0047
LVGI 0.80880.88030.91120.46330.54220.51741.2062.19882.21462.3312
TATA -0.063-0.0586-0.0805-0.0688-0.0587-0.0719-0.0461-0.05-0.0526-0.0268
M-score -2.81-2.71-2.87-2.54-2.49-2.59-2.71-3.24-3.11-2.99
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