Switch to:
Biomarin Pharmaceutical Inc (NAS:BMRN)
Beneish M-Score
-2.25 (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 -2.25 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: -2.25

-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 -2.11.


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 * 0.8919+0.528 * 1.0156+0.404 * 1.2222+0.892 * 1.1532+0.115 * 1.0476
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0728+4.679 * 0.0247-0.327 * 1.0536
=-2.25

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $180.8 Mil.
Revenue was 236.736 + 227.936 + 208.904 + 250.523 = $924.1 Mil.
Gross Profit was 193.618 + 185.338 + 172.185 + 210.645 = $761.8 Mil.
Total Current Assets was $992.8 Mil.
Total Assets was $3,667.0 Mil.
Property, Plant and Equipment(Net PPE) was $716.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $56.6 Mil.
Selling, General & Admin. Expense(SGA) was $414.8 Mil.
Total Current Liabilities was $388.0 Mil.
Long-Term Debt was $668.0 Mil.
Net Income was -85.142 + 68.617 + -90.926 + -81.989 = $-189.4 Mil.
Non Operating Income was 0.063 + -7.722 + -7.631 + -9.325 = $-24.6 Mil.
Cash Flow from Operations was -171.553 + -68.037 + -2.85 + -12.991 = $-255.4 Mil.
Accounts Receivable was $175.7 Mil.
Revenue was 202.92 + 230.068 + 176.549 + 191.787 = $801.3 Mil.
Gross Profit was 171.922 + 191.747 + 146.629 + 160.577 = $670.9 Mil.
Total Current Assets was $1,522.7 Mil.
Total Assets was $3,658.7 Mil.
Property, Plant and Equipment(Net PPE) was $538.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $44.7 Mil.
Selling, General & Admin. Expense(SGA) was $335.3 Mil.
Total Current Liabilities was $305.5 Mil.
Long-Term Debt was $694.5 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)
=(180.751 / 924.099) / (175.738 / 801.324)
=0.19559701 / 0.21930954
=0.8919

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)
=(670.875 / 801.324) / (761.786 / 924.099)
=0.83720817 / 0.8243554
=1.0156

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 - (992.79 + 716.916) / 3666.993) / (1 - (1522.728 + 538.117) / 3658.686)
=0.53375804 / 0.43672537
=1.2222

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
=924.099 / 801.324
=1.1532

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))
=(44.684 / (44.684 + 538.117)) / (56.614 / (56.614 + 716.916))
=0.07667111 / 0.07318915
=1.0476

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)
=(414.765 / 924.099) / (335.267 / 801.324)
=0.44883178 / 0.41839131
=1.0728

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)
=((668.009 + 388.011) / 3666.993) / ((694.543 + 305.506) / 3658.686)
=0.28797982 / 0.27333556
=1.0536

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
=(-189.44 - -24.615 - -255.431) / 3666.993
=0.0247

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 -2.25 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 0.76310.80151.31161.23691.01581.03240.9170.98620.89550.9636
GMI 1.00151.05561.03171.03250.98011.00440.99150.98930.99790.9976
AQI 0.3490.72580.42035.6211.5571.02190.79361.01820.63812.318
SGI 3.28061.44382.43861.0951.1591.1731.13451.09541.36931.1849
DEPI 1.198612.67650.11321.29740.85750.93920.86141.06531.31851.5572
SGAI 0.35961.09530.56361.06511.05330.98570.99581.08420.93761.1236
LVGI 0.44921.17681.0090.90670.58260.92740.9321.18370.94960.8368
TATA 0.0049-0.01450.0511-0.08870.1607-0.0523-0.0822-0.0462-0.02390.0238
M-score -0.59-1.15-0.92-0.65-1.25-2.51-2.90-2.69-2.44-1.61

Biomarin Pharmaceutical Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.98620.82140.88940.77870.89681.13591.10950.91670.96180.8919
GMI 0.97350.96740.97490.96321.00221.00511.0041.0141.00681.0156
AQI 1.01820.75630.74780.9360.63811.55531.83051.4182.3181.2222
SGI 1.09541.11741.19491.24971.36731.40061.37151.33841.18711.1532
DEPI 1.33031.78151.92611.98271.25811.00960.9170.93511.28291.0476
SGAI 1.08421.07221.07881.00510.94010.97951.02681.05621.12011.0728
LVGI 1.18372.19882.21462.33120.94960.78270.79350.82520.83681.0536
TATA -0.0446-0.0459-0.0485-0.02-0.01630.0095-0.0012-0.02970.020.0247
M-score -2.66-3.18-3.05-2.92-2.41-1.65-1.66-2.18-1.65-2.25
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)
FEEDBACK