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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 -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 * 1.1077+0.528 * 1.0026+0.404 * 1.8305+0.892 * 1.3738+0.115 * 0.9741
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0247+4.679 * -0.0026-0.327 * 0.7935
=-1.66

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $186.1 Mil.
Revenue was 250.523 + 203.264 + 230.854 + 176.847 = $861.5 Mil.
Gross Profit was 210.645 + 170.451 + 185.036 + 146.927 = $713.1 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 $60.6 Mil.
Selling, General & Admin. Expense(SGA) was $368.6 Mil.
Total Current Liabilities was $347.7 Mil.
Long-Term Debt was $661.5 Mil.
Net Income was -81.989 + -67.501 + -69.797 + 7.445 = $-211.8 Mil.
Non Operating Income was -9.325 + -7.026 + 0.572 + -0.299 = $-16.1 Mil.
Cash Flow from Operations was -12.991 + -137.811 + -26.777 + -8.804 = $-186.4 Mil.
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.



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)
=(186.083 / 861.488) / (122.282 / 627.086)
=0.21600185 / 0.19500037
=1.1077

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)
=(170.451 / 627.086) / (210.645 / 861.488)
=0.8298463 / 0.82770625
=1.0026

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 - (1213.929 + 568.051) / 3648.689) / (1 - (1220.227 + 469.862) / 2345.685)
=0.51161088 / 0.27949021
=1.8305

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
=861.488 / 627.086
=1.3738

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))
=(48.728 / (48.728 + 469.862)) / (60.643 / (60.643 + 568.051))
=0.09396248 / 0.09645869
=0.9741

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)
=(368.556 / 861.488) / (261.808 / 627.086)
=0.42781327 / 0.41749935
=1.0247

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)
=((661.492 + 347.704) / 3648.689) / ((650.872 + 166.72) / 2345.685)
=0.2765914 / 0.34855149
=0.7935

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
=(-211.842 - -16.078 - -186.383) / 3648.689
=-0.0026

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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.99621.00530.95010.98620.82140.88940.77840.89551.13381.1077
GMI 1.00850.99551.00110.98930.98240.98870.97580.99791.00331.0026
AQI 0.92720.98151.04661.01820.75630.74780.9360.61951.55531.8305
SGI 1.14151.13611.11941.09541.11741.19491.25021.36931.40311.3738
DEPI 0.91380.92950.93791.04581.39561.51431.56571.31850.99790.9741
SGAI 0.9950.94031.01931.08421.07221.07881.00470.93830.97741.0247
LVGI 0.46330.54220.51741.18372.19882.21462.33120.960.78270.7935
TATA -0.0686-0.0584-0.0716-0.046-0.0475-0.05-0.0242-0.02110.0081-0.0026
M-score -2.54-2.48-2.59-2.69-3.23-3.10-2.98-2.44-1.66-1.66
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