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Geron Corp (NAS:GERN)
Beneish M-Score
-5.15 (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.

Geron Corp has a M-score of -5.15 suggests that the company is not a manipulator.

GERN' s 10-Year Beneish M-Score Range
Min: -6.57   Max: 19.28
Current: -5.15

-6.57
19.28

During the past 13 years, the highest Beneish M-Score of Geron Corp was 19.28. The lowest was -6.57. And the median was -2.53.


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 Geron Corp 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 * 1.2993+0.528 * 1+0.404 * 2.63+0.892 * 0.9222+0.115 * 2.7991
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2404+4.679 * -0.2981-0.327 * 8.0388
=-5.15

* 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 $1.51 Mil.
Revenue was 0.251 + 0.537 + 0.178 + 0.16 = $1.13 Mil.
Gross Profit was 0.251 + 0.537 + 0.178 + 0.16 = $1.13 Mil.
Total Current Assets was $140.20 Mil.
Total Assets was $159.08 Mil.
Property, Plant and Equipment(Net PPE) was $0.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.04 Mil.
Selling, General & Admin. Expense(SGA) was $17.49 Mil.
Total Current Liabilities was $40.73 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -9.356 + -9.315 + -8.947 + -9.549 = $-37.17 Mil.
Non Operating Income was 0 + 0.016 + -0.015 + 0.289 = $0.29 Mil.
Cash Flow from Operations was -6.335 + -7.705 + 28.477 + -4.472 = $9.97 Mil.
Accounts Receivable was $1.26 Mil.
Revenue was 0.341 + 0.474 + 0.225 + 0.181 = $1.22 Mil.
Gross Profit was 0.341 + 0.474 + 0.225 + 0.181 = $1.22 Mil.
Total Current Assets was $142.59 Mil.
Total Assets was $149.34 Mil.
Property, Plant and Equipment(Net PPE) was $0.06 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.09 Mil.
Selling, General & Admin. Expense(SGA) was $15.29 Mil.
Total Current Liabilities was $4.76 Mil.
Long-Term Debt was $0.00 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)
=(1.505 / 1.126) / (1.256 / 1.221)
=1.3365897 / 1.02866503
=1.2993

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)
=(0.537 / 1.221) / (0.251 / 1.126)
=1 / 1
=1

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 - (140.198 + 0.151) / 159.083) / (1 - (142.592 + 0.06) / 149.339)
=0.11776243 / 0.04477732
=2.63

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
=1.126 / 1.221
=0.9222

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))
=(0.085 / (0.085 + 0.06)) / (0.04 / (0.04 + 0.151))
=0.5862069 / 0.20942408
=2.7991

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)
=(17.488 / 1.126) / (15.288 / 1.221)
=15.53108348 / 12.52088452
=1.2404

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)
=((0 + 40.727) / 159.083) / ((0 + 4.756) / 149.339)
=0.25601101 / 0.03184701
=8.0388

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
=(-37.167 - 0.29 - 9.965) / 159.083
=-0.2981

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.

Geron Corp has a M-score of -5.15 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.

Geron Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.47160.04870.26723.04362.42680.66121.13570.48411.58361.9
GMI 1111111111
AQI 0.36110.37341.25463.074215.98180.4671.36490.01980.704837.9004
SGI 4.027811.32.32590.36780.61582.06430.68431.11120.47360.8987
DEPI 1.76061.03311.21441.02031.02270.89920.61161.21730.59243.6356
SGAI 0.3760.09470.72412.77861.43930.60941.92690.77161.61741.1935
LVGI 1.30131.75190.27420.75320.94454.23140.48031.68760.79472.1507
TATA -0.0933-0.0562-0.1166-0.1113-0.1421-0.278-0.2058-0.1378-0.0205-0.263
M-score -0.865.23-2.10-1.073.82-4.36-3.49-4.06-2.7111.83

Geron Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.04770.43390.85691.58363.49664.7192.06441.90.67461.2993
GMI 1111111111
AQI 0.03970.17320.04810.70489.95387.9439.066137.90042.1722.63
SGI 1.01511.18710.76930.47360.44680.55450.68690.89871.22580.9222
DEPI 1.25060.93870.50210.59240.63560.897952.48993.63563.69612.7991
SGAI 1.00180.73580.99731.61741.65671.55921.4191.19350.95281.2404
LVGI 1.12670.71730.98150.79470.35440.46720.49252.15078.43318.0388
TATA -0.0877-0.0502-0.0652-0.0205-0.0312-0.0488-0.0716-0.263-0.2885-0.2981
M-score -3.23-3.27-3.56-2.712.853.1919.2811.83-5.57-5.15
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