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Synageva BioPharma Corp (NAS:GEVA)
Beneish M-Score
-2.88 (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 -2.88 suggests that the company is not a manipulator.

GEVA' s 10-Year Beneish M-Score Range
Min: -6.46   Max: 1439.46
Current: -2.88

-6.46
1439.46

During the past 13 years, the highest Beneish M-Score of Synageva BioPharma Corp was 1439.46. The lowest was -6.46. And the median was -2.35.


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 * 1.5749+0.528 * 1+0.404 * 0.538+0.892 * 0.5568+0.115 * 2.0504
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.829+4.679 * -0.0412-0.327 * 0.8836
=-2.88

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $2.27 Mil.
Revenue was 1.586 + 3.474 + 1.369 + 3.413 = $9.84 Mil.
Gross Profit was 1.586 + 3.474 + 1.369 + 3.413 = $9.84 Mil.
Total Current Assets was $585.59 Mil.
Total Assets was $623.10 Mil.
Property, Plant and Equipment(Net PPE) was $23.65 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.66 Mil.
Selling, General & Admin. Expense(SGA) was $31.71 Mil.
Total Current Liabilities was $17.19 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -36.424 + -30.736 + -28.123 + -22.107 = $-117.39 Mil.
Non Operating Income was -0.005 + 0.159 + 0 + 0 = $0.15 Mil.
Cash Flow from Operations was -34.037 + -26.395 + -15.453 + -16.003 = $-91.89 Mil.
Accounts Receivable was $2.59 Mil.
Revenue was 5.118 + 4.88 + 5.428 + 2.249 = $17.68 Mil.
Gross Profit was 5.118 + 4.88 + 5.428 + 2.249 = $17.68 Mil.
Total Current Assets was $319.76 Mil.
Total Assets was $341.15 Mil.
Property, Plant and Equipment(Net PPE) was $7.28 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.77 Mil.
Selling, General & Admin. Expense(SGA) was $20.13 Mil.
Total Current Liabilities was $10.65 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)
=(2.274 / 9.842) / (2.593 / 17.675)
=0.2310506 / 0.14670438
=1.5749

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)
=(3.474 / 17.675) / (1.586 / 9.842)
=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 - (585.589 + 23.647) / 623.104) / (1 - (319.764 + 7.276) / 341.153)
=0.02225632 / 0.04136854
=0.538

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
=9.842 / 17.675
=0.5568

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))
=(4.769 / (4.769 + 7.276)) / (5.659 / (5.659 + 23.647))
=0.39593192 / 0.19310039
=2.0504

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)
=(31.71 / 9.842) / (20.13 / 17.675)
=3.22190612 / 1.13889675
=2.829

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 + 17.187) / 623.104) / ((0 + 10.649) / 341.153)
=0.02758288 / 0.03121473
=0.8836

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
=(-117.39 - 0.154 - -91.888) / 623.104
=-0.0412

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 -2.88 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 11.14640.87360.28380.58771.10938.26961.22430.10570.5907
GMI 1111111111
AQI 5.62941.47310.94830.90522.21180.54670.024357.18570.27840.5383
SGI 1.80371.56621.45083.24010.39780.77260.03923.52777.12430.8943
DEPI 1.39841.28860.35651.39030.371113.78390.58530.87562.1105
SGAI 0.16510.59350.90970.27511.74640.925717.82090.68190.26351.7714
LVGI 0.56131.27120.88520.57531.17071.24680.92351.07520.54230.578
TATA 0.288-0.11-0.35430.062-0.1739-0.0919-0.1512-0.1015-0.0494-0.046
M-score 1.79-2.15-3.89-0.58-3.98-3.26-0.3022.191.90-3.22

Synageva BioPharma Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.22431.8190.18510.16710.10570.06010.81270.48620.59071.5749
GMI 1111111111
AQI 57.185726.985127.384516.04780.27840.41990.41370.47480.53830.538
SGI 3.52777.452110.830319.64377.12433.98622.92351.26450.89430.5568
DEPI 0.49290.39120.37660.47820.87561.43672.07421.78782.11052.0504
SGAI 0.68180.38020.30660.19040.26350.46260.60641.37381.77142.829
LVGI 1.07521.07841.15550.58060.54230.31390.36610.53520.5780.8836
TATA -0.1015-0.0511-0.117-0.0505-0.0494-0.0234-0.0109-0.0377-0.046-0.0412
M-score 22.1814.3015.6519.441.90-0.66-0.83-2.93-3.22-2.88
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