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Icon PLC (NAS:ICLR)
Beneish M-Score
-2.68 (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.

Icon PLC has a M-score of -2.68 suggests that the company is not a manipulator.

ICLR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.87   Max: 10000000
Current: -2.68

-4.87
10000000

During the past 13 years, the highest Beneish M-Score of Icon PLC was 10000000.00. The lowest was -4.87. 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 Icon PLC 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 * 0.9681+0.528 * 0.9358+0.404 * 1.0057+0.892 * 1.0708+0.115 * 0.8856
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9291+4.679 * -0.0096-0.327 * 1.4719
=-2.68

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $387 Mil.
Revenue was 394.741 + 388.657 + 388.231 + 390.073 = $1,562 Mil.
Gross Profit was 168.186 + 163.696 + 160.153 + 160.197 = $652 Mil.
Total Current Assets was $1,017 Mil.
Total Assets was $1,813 Mil.
Property, Plant and Equipment(Net PPE) was $149 Mil.
Depreciation, Depletion and Amortization(DDA) was $57 Mil.
Selling, General & Admin. Expense(SGA) was $329 Mil.
Total Current Liabilities was $910 Mil.
Long-Term Debt was $0 Mil.
Net Income was 61.542 + 58.584 + 55.869 + 45.174 = $221 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 74.236 + 28.078 + 61.113 + 75.218 = $239 Mil.
Accounts Receivable was $373 Mil.
Revenue was 387.589 + 376.02 + 349.634 + 345.24 = $1,458 Mil.
Gross Profit was 157.626 + 148.832 + 133.494 + 130.085 = $570 Mil.
Total Current Assets was $860 Mil.
Total Assets was $1,573 Mil.
Property, Plant and Equipment(Net PPE) was $155 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $330 Mil.
Total Current Liabilities was $536 Mil.
Long-Term Debt was $0 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)
=(386.59 / 1561.702) / (372.953 / 1458.483)
=0.24754403 / 0.25571296
=0.9681

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)
=(163.696 / 1458.483) / (168.186 / 1561.702)
=0.3908424 / 0.41764178
=0.9358

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 - (1017.028 + 148.835) / 1812.792) / (1 - (859.903 + 154.748) / 1572.726)
=0.35686885 / 0.35484566
=1.0057

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
=1561.702 / 1458.483
=1.0708

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))
=(50.17 / (50.17 + 154.748)) / (56.87 / (56.87 + 148.835))
=0.24482964 / 0.27646387
=0.8856

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)
=(328.736 / 1561.702) / (330.447 / 1458.483)
=0.21049855 / 0.22656898
=0.9291

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 + 909.651) / 1812.792) / ((0 + 536.176) / 1572.726)
=0.50179557 / 0.34092143
=1.4719

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
=(221.169 - 0 - 238.645) / 1812.792
=-0.0096

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.

Icon PLC has a M-score of -2.68 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.

Icon PLC Annual Data

May05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.98760.9640.86681.18180.88860.84741.16191.20241.00170.9624
GMI 1.00561.02850.9991.00781.01551.07391.1290.99070.97020.9199
AQI 1.01590.8551.18431.14270.94850.98141.39071.0560.96451.2364
SGI 1.10011.39471.38441.37181.02581.0141.05081.1791.19831.1252
DEPI 0.88091.25831.44040.89220.90080.93270.8860.9210.90390.857
SGAI 1.06230.94350.99430.96460.90480.99381.04650.93080.93310.9525
LVGI 0.92471.12331.14451.07940.75350.79951.12991.15461.01031.0135
TATA -0.0011-0.03310.0148-0.0036-0.177-0.00040.0026-0.0483-0.08210.0016
M-score -2.40-2.36-2.11-1.97-3.31-2.52-2.11-2.39-2.72-2.35

Icon PLC Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.09731.27651.00171.11421.09770.91670.96240.95141.25990.9681
GMI 0.97120.97280.97020.96010.9420.92890.91990.9160.92490.9358
AQI 0.96250.93780.96450.8471.14161.14031.23641.42981.07891.0057
SGI 1.22111.22081.19831.16061.14071.12971.12521.12641.1021.0708
DEPI 0.96320.95080.90390.92240.92770.88670.8570.81810.83460.8856
SGAI 0.88250.91770.93310.94660.96640.95060.95250.94310.91680.9291
LVGI 1.04911.03171.01030.96980.93410.97621.01351.03381.0611.4719
TATA -0.0321-0.0335-0.0821-0.04750.0089-0.020.0016-0.0002-0.04-0.0096
M-score -2.37-2.23-2.72-2.53-2.18-2.51-2.35-2.31-2.37-2.68
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