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Synageva BioPharma Corp (NAS:GEVA)
Beneish M-Score
-3.22 (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 -3.22 suggests that the company is not a manipulator.

GEVA' s 10-Year Beneish M-Score Range
Min: -6.46   Max: 22.18
Current: -3.22

-6.46
22.18

During the past 13 years, the highest Beneish M-Score of Synageva BioPharma Corp was 22.18. The lowest was -6.46. And the median was -3.22.


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 * 0.5907+0.528 * 1+0.404 * 0.5383+0.892 * 0.8943+0.115 * 2.1105
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7714+4.679 * -0.046-0.327 * 0.578
=-3.22

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
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.
Net Income was -30.736 + -28.123 + -22.107 + -14.484 = $-95.45 Mil.
Non Operating Income was 0.159 + 0 + 0 + 0 = $0.16 Mil.
Cash Flow from Operations was -26.395 + -15.453 + -16.003 + -17.151 = $-75.00 Mil.
Accounts Receivable was $2.60 Mil.
Revenue was 4.88 + 5.428 + 2.249 + 2.397 = $14.95 Mil.
Gross Profit was 4.88 + 5.428 + 2.249 + 2.397 = $14.95 Mil.
Total Current Assets was $225.11 Mil.
Total Assets was $243.26 Mil.
Property, Plant and Equipment(Net PPE) was $4.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.27 Mil.
Selling, General & Admin. Expense(SGA) was $17.40 Mil.
Total Current Liabilities was $13.08 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)
=(1.373 / 13.374) / (2.599 / 14.954)
=0.10266188 / 0.17379965
=0.5907

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)
=(1.369 / 14.954) / (3.474 / 13.374)
=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 - (416.723 + 17.213) / 447.949) / (1 - (225.107 + 4.012) / 243.256)
=0.03128258 / 0.05811573
=0.5383

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
=13.374 / 14.954
=0.8943

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))
=(4.272 / (4.272 + 4.012)) / (5.566 / (5.566 + 17.213))
=0.5156929 / 0.24434786
=2.1105

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)
=(27.56 / 13.374) / (17.396 / 14.954)
=2.06071482 / 1.16330079
=1.7714

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 + 13.92) / 447.949) / ((0 + 13.079) / 243.256)
=0.03107497 / 0.0537664
=0.578

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
=(-95.45 - 0.159 - -75.002) / 447.949
=-0.046

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 -3.22 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 11.12611.22431.8190.18510.16710.10570.06010.81270.48620.5907
GMI 1111111111
AQI 0.246857.185726.985127.384516.04780.27840.41990.41370.47480.5383
SGI -0.84193.52777.452110.830319.64377.12433.98622.92351.26450.8943
DEPI 10.49290.39120.37660.47820.87561.43672.07421.78782.1105
SGAI 36.99120.68180.38020.30660.19040.26350.46260.60641.37381.7714
LVGI 1.02381.07521.07841.15550.58060.54230.31390.36610.53520.578
TATA -0.5316-0.1015-0.0511-0.117-0.0505-0.0494-0.0234-0.0109-0.0377-0.046
M-score -3.8022.1814.3015.6519.441.90-0.66-0.83-2.93-3.22
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