Switch to:
Synageva BioPharma Corp (NAS:GEVA)
Beneish M-Score
-3.52 (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 -3.52 suggests that the company is not a manipulator.

GEVA' s 10-Year Beneish M-Score Range
Min: -12.06   Max: 3038.3
Current: -3.52

-12.06
3038.3

During the past 13 years, the highest Beneish M-Score of Synageva BioPharma Corp was 3038.30. The lowest was -12.06. And the median was -2.47.


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 * 1.2645+0.528 * 1+0.404 * 0.702+0.892 * 0.4656+0.115 * 1.7206
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.5839+4.679 * -0.0577-0.327 * 1.1782
=-3.52

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2.24 Mil.
Revenue was 2.343 + 1.586 + 3.474 + 1.369 = $8.77 Mil.
Gross Profit was 2.343 + 1.586 + 3.474 + 1.369 = $8.77 Mil.
Total Current Assets was $545.64 Mil.
Total Assets was $593.24 Mil.
Property, Plant and Equipment(Net PPE) was $30.37 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.06 Mil.
Selling, General & Admin. Expense(SGA) was $37.86 Mil.
Total Current Liabilities was $27.27 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -50.24 + -36.424 + -30.736 + -28.123 = $-145.52 Mil.
Non Operating Income was -0.009 + -0.005 + 0.159 + 0 = $0.15 Mil.
Cash Flow from Operations was -35.553 + -34.037 + -26.395 + -15.453 = $-111.44 Mil.
Accounts Receivable was $3.81 Mil.
Revenue was 3.413 + 5.118 + 4.88 + 5.428 = $18.84 Mil.
Gross Profit was 3.413 + 5.118 + 4.88 + 5.428 = $18.84 Mil.
Total Current Assets was $297.58 Mil.
Total Assets was $324.19 Mil.
Property, Plant and Equipment(Net PPE) was $13.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.29 Mil.
Selling, General & Admin. Expense(SGA) was $22.69 Mil.
Total Current Liabilities was $12.65 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)
=(2.241 / 8.772) / (3.806 / 18.839)
=0.25547196 / 0.20202771
=1.2645

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)
=(1.586 / 18.839) / (2.343 / 8.772)
=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 - (545.641 + 30.369) / 593.235) / (1 - (297.575 + 13.207) / 324.191)
=0.02903571 / 0.04136142
=0.702

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
=8.772 / 18.839
=0.4656

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))
=(5.294 / (5.294 + 13.207)) / (6.058 / (6.058 + 30.369))
=0.28614669 / 0.16630521
=1.7206

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)
=(37.858 / 8.772) / (22.686 / 18.839)
=4.31577747 / 1.20420404
=3.5839

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 + 27.269) / 593.235) / ((0 + 12.648) / 324.191)
=0.04596661 / 0.03901404
=1.1782

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
=(-145.523 - 0.145 - -111.438) / 593.235
=-0.0577

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 -3.52 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 3258.83751.14640.87360.28380.56021.16390.846411.96240.10570.5907
GMI 1111111111
AQI 5.62941.47310.94831.46231.36910.54670.94991.46570.27840.5383
SGI 1.80371.56621.45083.24010.41740.73641.760.07867.12430.8943
DEPI 1.39841.28860.35650.61610.8374112.21470.87562.1105
SGAI 0.16510.59350.90970.27511.66460.97120.595320.41310.26351.7714
LVGI 0.56131.27120.88520.57531.17071.24680.1755.67350.54230.578
TATA 0.288-0.11-0.35430.0617-0.1739-0.09190.3919-0.1015-0.0494-0.046
M-score 2,999.00-2.15-3.89-0.45-4.26-3.250.211.771.90-3.22

Synageva BioPharma Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 27.41481.70910.24430.10570.06010.81270.48620.59071.57491.2645
GMI 1111111111
AQI 0.73842.521.58880.27840.41990.41370.47480.53830.5380.702
SGI 0.18750.31243.37227.12433.98622.92351.26450.89430.55680.4656
DEPI 1.7581.70122.15960.87561.43672.05431.77132.11052.05041.7206
SGAI 10.36246.31060.55620.26350.46260.60641.37381.77142.8293.5839
LVGI 6.2994.30052.4240.54230.31390.36610.53520.5780.88361.1782
TATA -0.0511-0.117-0.0505-0.0494-0.0234-0.0109-0.0377-0.046-0.0412-0.0577
M-score 17.50-4.29-1.311.90-0.66-0.83-2.93-3.22-2.88-3.52
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)
Free 7-day Trial
FEEDBACK
Email Hide