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Synageva BioPharma Corp (NAS:GEVA)
Beneish M-Score
-3.58 (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.

Synageva BioPharma Corp has a M-score of -3.58 suggests that the company is not a manipulator.

GEVA' s 10-Year Beneish M-Score Range
Min: -6.46   Max: 21.78
Current: -3.58

-6.46
21.78

During the past 13 years, the highest Beneish M-Score of Synageva BioPharma Corp was 21.78. The lowest was -6.46. And the median was -3.24.


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 Synageva BioPharma 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 * 1.4794+0.528 * 1+0.404 * 0.9391+0.892 * 0.4854+0.115 * 1.5145
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 4.0737+4.679 * -0.0839-0.327 * 1.6111
=-3.58

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $0.99 Mil.
Revenue was 1.237 + 1.326 + 2.343 + 1.586 = $6.49 Mil.
Gross Profit was 1.237 + 1.326 + 2.343 + 1.586 = $6.49 Mil.
Total Current Assets was $457.83 Mil.
Total Assets was $504.20 Mil.
Property, Plant and Equipment(Net PPE) was $31.56 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.07 Mil.
Selling, General & Admin. Expense(SGA) was $54.50 Mil.
Total Current Liabilities was $25.24 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -57.665 + -48.319 + -50.24 + -36.424 = $-192.65 Mil.
Non Operating Income was 0.088 + -0.312 + -0.009 + -0.005 = $-0.24 Mil.
Cash Flow from Operations was -40.402 + -40.132 + -35.553 + -34.037 = $-150.12 Mil.
Accounts Receivable was $1.37 Mil.
Revenue was 3.474 + 1.369 + 3.413 + 5.118 = $13.37 Mil.
Gross Profit was 3.474 + 1.369 + 3.413 + 5.118 = $13.37 Mil.
Total Current Assets was $416.72 Mil.
Total Assets was $447.95 Mil.
Property, Plant and Equipment(Net PPE) was $17.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.57 Mil.
Selling, General & Admin. Expense(SGA) was $27.56 Mil.
Total Current Liabilities was $13.92 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)
=(0.986 / 6.492) / (1.373 / 13.374)
=0.15187924 / 0.10266188
=1.4794

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)
=(1.326 / 13.374) / (1.237 / 6.492)
=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 - (457.832 + 31.559) / 504.203) / (1 - (416.723 + 17.213) / 447.949)
=0.02937706 / 0.03128258
=0.9391

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
=6.492 / 13.374
=0.4854

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))
=(5.566 / (5.566 + 17.213)) / (6.071 / (6.071 + 31.559))
=0.24434786 / 0.16133404
=1.5145

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)
=(54.498 / 6.492) / (27.56 / 13.374)
=8.39463956 / 2.06071482
=4.0737

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 + 25.243) / 504.203) / ((0 + 13.92) / 447.949)
=0.05006515 / 0.03107497
=1.6111

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
=(-192.648 - -0.238 - -150.124) / 504.203
=-0.0839

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.

Synageva BioPharma Corp has a M-score of -3.58 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.

Synageva BioPharma Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.14060.87580.28320.58321.12348.26960.78440.1650.59071.4794
GMI 1111111111
AQI 1.47310.94830.90522.21180.54670.024357.18570.27840.53830.9391
SGI 1.56621.45083.24010.39780.77260.03923.52777.12430.89430.4854
DEPI 1.28860.35651.39030.371113.78390.58530.87562.11051.5145
SGAI 0.59350.90970.27511.74640.925717.82090.68190.26351.77144.0737
LVGI 1.27120.88520.57531.17071.24680.92351.07520.54230.5781.6111
TATA -0.11-0.35430.062-0.1739-0.0919-0.1512-0.1015-0.0494-0.046-0.0839
M-score -2.15-3.89-0.58-3.98-3.25-0.3021.781.95-3.22-3.58

Synageva BioPharma Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.16710.1650.06010.81270.34440.59071.00151.26452.01941.4794
GMI 1111111111
AQI 16.04780.27840.41990.41370.47480.53830.5380.7021.09870.9391
SGI 19.64377.12433.98622.92351.26450.89430.55680.46560.59060.4854
DEPI 0.56790.87561.43672.07421.78782.11052.05041.71321.62111.5145
SGAI 0.19040.26350.46260.60641.37381.77142.8293.58393.09054.0737
LVGI 0.58060.54230.31390.36610.53520.5780.88361.17821.47061.6111
TATA -0.0505-0.0494-0.0234-0.0109-0.0377-0.046-0.0412-0.0577-0.0537-0.0839
M-score 19.451.95-0.66-0.83-3.06-3.22-3.41-3.52-2.56-3.58
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