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Synageva BioPharma Corp (NAS:GEVA)
Beneish M-Score
-2.56 (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 -2.56 suggests that the company is not a manipulator.

GEVA' s 10-Year Beneish M-Score Range
Min: -10.77   Max: 2999
Current: -2.56

-10.77
2999

During the past 13 years, the highest Beneish M-Score of Synageva BioPharma Corp was 2999.00. The lowest was -10.77. And the median was -2.42.


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 * 2.0194+0.528 * 1+0.404 * 1.0987+0.892 * 0.5906+0.115 * 1.6211
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.0905+4.679 * -0.0537-0.327 * 1.4706
=-2.56

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1.36 Mil.
Revenue was 1.326 + 2.343 + 1.586 + 3.474 = $8.73 Mil.
Gross Profit was 1.326 + 2.343 + 1.586 + 3.474 = $8.73 Mil.
Total Current Assets was $500.13 Mil.
Total Assets was $548.21 Mil.
Property, Plant and Equipment(Net PPE) was $31.32 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.99 Mil.
Selling, General & Admin. Expense(SGA) was $45.70 Mil.
Total Current Liabilities was $23.10 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -48.319 + -50.24 + -36.424 + -30.736 = $-165.72 Mil.
Non Operating Income was -0.312 + -0.009 + -0.005 + 0.159 = $-0.17 Mil.
Cash Flow from Operations was -40.132 + -35.553 + -34.037 + -26.395 = $-136.12 Mil.
Accounts Receivable was $1.14 Mil.
Revenue was 1.369 + 3.413 + 5.118 + 4.88 = $14.78 Mil.
Gross Profit was 1.369 + 3.413 + 5.118 + 4.88 = $14.78 Mil.
Total Current Assets was $443.23 Mil.
Total Assets was $471.88 Mil.
Property, Plant and Equipment(Net PPE) was $15.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.46 Mil.
Selling, General & Admin. Expense(SGA) was $25.04 Mil.
Total Current Liabilities was $13.52 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)
=(1.362 / 8.729) / (1.142 / 14.78)
=0.15603162 / 0.07726658
=2.0194

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)
=(2.343 / 14.78) / (1.326 / 8.729)
=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 - (500.126 + 31.324) / 548.206) / (1 - (443.228 + 15.527) / 471.883)
=0.03056515 / 0.02782046
=1.0987

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
=8.729 / 14.78
=0.5906

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))
=(5.464 / (5.464 + 15.527)) / (5.992 / (5.992 + 31.324))
=0.26030203 / 0.16057455
=1.6211

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)
=(45.702 / 8.729) / (25.039 / 14.78)
=5.23565128 / 1.69411367
=3.0905

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 + 23.102) / 548.206) / ((0 + 13.522) / 471.883)
=0.04214109 / 0.02865541
=1.4706

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
=(-165.719 - -0.167 - -136.117) / 548.206
=-0.0537

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 -2.56 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 3258.83751.14060.87580.28320.55591.17860.566611.44940.1650.5907
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 1.39841.28860.35650.61610.8374112.2560.85952.1105
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 2,999.00-2.15-3.89-0.45-4.26-3.24-0.051.301.95-3.22

Synageva BioPharma Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 12.17242.52510.1650.03920.21440.15030.59071.00151.26452.0194
GMI 1111111111
AQI 2.521.58880.27840.41990.41370.47480.53830.5380.7021.0987
SGI 0.0670.50737.12436.101111.08182.8980.89430.55680.46560.5906
DEPI 1.80682.29650.85951.46061.94261.67292.11052.05041.71321.6211
SGAI 23.16853.34250.26350.31490.17450.62161.77142.8293.58393.0905
LVGI 4.30052.4240.54230.31390.36610.53520.5780.88361.17821.4706
TATA -0.0861-0.0476-0.0494-0.0234-0.0109-0.0377-0.046-0.0412-0.0577-0.0537
M-score 2.38-2.221.951.245.96-1.66-3.22-3.41-3.52-2.56
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