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Synageva BioPharma Corp (NAS:GEVA)
Beneish M-Score
-3.67 (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 -3.67 suggests that the company is not a manipulator.

GEVA' s 10-Year Beneish M-Score Range
Min: -6.46   Max: 1433.98
Current: -3.67

-6.46
1433.98

During the past 13 years, the highest Beneish M-Score of Synageva BioPharma Corp was 1433.98. The lowest was -6.46. And the median was -2.40.


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 * 1.0805+0.528 * 1+0.404 * 0.839+0.892 * 0.5927+0.115 * 1.1706
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.5313+4.679 * -0.0674-0.327 * 1.3139
=-3.67

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $0.93 Mil.
Revenue was 0.927 + 1.237 + 1.326 + 2.343 = $5.83 Mil.
Gross Profit was 0.927 + 1.237 + 1.326 + 2.343 = $5.83 Mil.
Total Current Assets was $722.28 Mil.
Total Assets was $768.55 Mil.
Property, Plant and Equipment(Net PPE) was $31.92 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.31 Mil.
Selling, General & Admin. Expense(SGA) was $66.37 Mil.
Total Current Liabilities was $27.85 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -59.601 + -57.665 + -48.319 + -50.24 = $-215.83 Mil.
Non Operating Income was -0.252 + 0.088 + -0.312 + -0.009 = $-0.49 Mil.
Cash Flow from Operations was -47.443 + -40.402 + -40.132 + -35.553 = $-163.53 Mil.
Accounts Receivable was $1.45 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.



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)
=(0.926 / 5.833) / (1.446 / 9.842)
=0.15875193 / 0.14692136
=1.0805

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)
=(1.237 / 9.842) / (0.927 / 5.833)
=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 - (722.278 + 31.917) / 768.546) / (1 - (585.589 + 23.647) / 623.104)
=0.01867292 / 0.02225632
=0.839

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
=5.833 / 9.842
=0.5927

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))
=(5.659 / (5.659 + 23.647)) / (6.305 / (6.305 + 31.917))
=0.19310039 / 0.16495735
=1.1706

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)
=(66.365 / 5.833) / (31.71 / 9.842)
=11.37750729 / 3.22190612
=3.5313

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 + 27.852) / 768.546) / ((0 + 17.187) / 623.104)
=0.03623986 / 0.02758288
=1.3139

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
=(-215.825 - -0.485 - -163.53) / 768.546
=-0.0674

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 -3.67 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.1650.06010.81270.34440.59071.00151.26452.01941.47941.0805
GMI 1111111111
AQI 0.27840.41990.41370.47480.53830.5380.7021.09870.93910.839
SGI 7.12433.98622.92351.26450.89430.55680.46560.59060.48540.5927
DEPI 0.87561.43672.07421.78782.11052.05041.71321.62111.51451.1706
SGAI 0.26350.46260.60641.37381.77142.8293.58393.09054.07373.5313
LVGI 0.54230.31390.36610.53520.5780.88361.17821.47061.61111.3139
TATA -0.0494-0.0234-0.0109-0.0377-0.046-0.0412-0.0577-0.0537-0.0839-0.0674
M-score 1.95-0.66-0.83-3.06-3.22-3.41-3.52-2.56-3.58-3.67
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