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Icon PLC (NAS:ICLR)
Beneish M-Score
-2.42 (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 -2.42 suggests that the company is not a manipulator.

ICLR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.47   Max: -1.08
Current: -2.42

-4.47
-1.08

During the past 13 years, the highest Beneish M-Score of Icon PLC was -1.08. The lowest was -4.47. And the median was -2.41.


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 * 0.9614+0.528 * 0.9993+0.404 * 0.9601+0.892 * 1.0581+0.115 * 0.9712
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.942+4.679 * 0.0016-0.327 * 0.8616
=-2.42

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $416 Mil.
Revenue was 435.134 + 420.201 + 410.63 + 400.522 = $1,666 Mil.
Gross Profit was 183.632 + 176.957 + 172.646 + 171.919 = $705 Mil.
Total Current Assets was $958 Mil.
Total Assets was $1,826 Mil.
Property, Plant and Equipment(Net PPE) was $149 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $326 Mil.
Total Current Liabilities was $494 Mil.
Long-Term Debt was $349 Mil.
Net Income was 74.262 + 63.879 + 61.074 + 62.964 = $262 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 123.539 + 51.911 + 24.316 + 59.438 = $259 Mil.
Accounts Receivable was $409 Mil.
Revenue was 403.349 + 394.741 + 388.657 + 388.231 = $1,575 Mil.
Gross Profit was 173.963 + 168.186 + 163.696 + 160.153 = $666 Mil.
Total Current Assets was $863 Mil.
Total Assets was $1,717 Mil.
Property, Plant and Equipment(Net PPE) was $150 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General & Admin. Expense(SGA) was $327 Mil.
Total Current Liabilities was $572 Mil.
Long-Term Debt was $348 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)
=(416.229 / 1666.487) / (409.165 / 1574.978)
=0.24976432 / 0.25979093
=0.9614

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)
=(665.998 / 1574.978) / (705.154 / 1666.487)
=0.42286178 / 0.42313801
=0.9993

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 - (957.958 + 148.967) / 1825.843) / (1 - (862.739 + 150.218) / 1717.209)
=0.39374579 / 0.41011432
=0.9601

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
=1666.487 / 1574.978
=1.0581

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))
=(57.677 / (57.677 + 150.218)) / (59.575 / (59.575 + 148.967))
=0.27743332 / 0.28567387
=0.9712

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)
=(325.726 / 1666.487) / (326.787 / 1574.978)
=0.19545667 / 0.20748671
=0.942

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)
=((348.511 + 494.406) / 1825.843) / ((348.306 + 571.8) / 1717.209)
=0.46165908 / 0.5358148
=0.8616

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
=(262.179 - 0 - 259.204) / 1825.843
=0.0016

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 -2.42 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 local exchange's currency.

Icon PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.86681.18180.88860.84741.16191.20241.00170.96241.05280.9614
GMI 0.9991.00781.01551.07391.1290.99070.97020.91990.94410.9993
AQI 1.18431.14270.94850.98141.39071.0560.96451.23641.11730.9601
SGI 1.38441.37181.02581.0141.05081.1791.19831.12521.04771.0581
DEPI 1.44040.89220.90080.93270.8860.9210.90390.8570.94350.9712
SGAI 0.99430.96460.90480.99381.04650.93080.93310.95250.92710.942
LVGI 1.14451.07940.75350.79951.12991.15461.01031.01351.52160.8616
TATA 0.0188-0.0036-0.177-0.00040.0026-0.0483-0.08210.0022-0.0230.0016
M-score -2.09-1.97-3.31-2.52-2.11-2.39-2.72-2.35-2.64-2.42

Icon PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.91670.96240.95141.25990.96811.05280.97290.66670.99750.9614
GMI 0.92890.91990.9160.92490.93580.94410.9520.96730.98160.9993
AQI 1.14031.23641.42981.07891.00571.11730.97030.98281.09160.9601
SGI 1.12971.12521.12641.1021.07081.04771.02941.03521.04671.0581
DEPI 0.88670.8570.81810.83460.88560.94350.99120.98240.98260.9712
SGAI 0.95060.95250.94310.91680.92910.92710.94540.95460.94640.942
LVGI 0.97621.01351.03381.0611.47191.52161.46211.31640.90110.8616
TATA -0.020.00220.0004-0.0394-0.0091-0.023-0.0171-0.0140.00010.0016
M-score -2.51-2.35-2.30-2.37-2.68-2.64-2.74-2.94-2.37-2.42
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