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Icon PLC (NAS:ICLR)
Beneish M-Score
-2.35 (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 -2.35 suggests that the company is not a manipulator.

ICLR' s 10-Year Beneish M-Score Range
Min: -4.49   Max: -1.08
Current: -2.35

-4.49
-1.08

During the past 13 years, the highest Beneish M-Score of Icon PLC was -1.08. The lowest was -4.49. And the median was -2.37.


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 * 0.9624+0.528 * 0.9199+0.404 * 1.2364+0.892 * 1.1252+0.115 * 0.857
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9525+4.679 * 0.0016-0.327 * 1.0135
=-2.35

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $371 Mil.
Revenue was 390.073 + 387.589 + 376.02 + 349.634 = $1,503 Mil.
Gross Profit was 160.197 + 157.626 + 148.832 + 133.494 = $600 Mil.
Total Current Assets was $820 Mil.
Total Assets was $1,529 Mil.
Property, Plant and Equipment(Net PPE) was $148 Mil.
Depreciation, Depletion and Amortization(DDA) was $53 Mil.
Selling, General & Admin. Expense(SGA) was $336 Mil.
Total Current Liabilities was $538 Mil.
Long-Term Debt was $0 Mil.
Net Income was 45.174 + 50.316 + 40.783 + 36.195 = $172 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 75.218 + 110.986 + -54.916 + 38.66 = $170 Mil.
Accounts Receivable was $343 Mil.
Revenue was 345.24 + 339.81 + 334.219 + 316.789 = $1,336 Mil.
Gross Profit was 130.085 + 126.144 + 119.988 + 114.428 = $491 Mil.
Total Current Assets was $853 Mil.
Total Assets was $1,442 Mil.
Property, Plant and Equipment(Net PPE) was $161 Mil.
Depreciation, Depletion and Amortization(DDA) was $47 Mil.
Selling, General & Admin. Expense(SGA) was $314 Mil.
Total Current Liabilities was $501 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)
=(370.956 / 1503.316) / (342.581 / 1336.058)
=0.2467585 / 0.25641177
=0.9624

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)
=(157.626 / 1336.058) / (160.197 / 1503.316)
=0.36723331 / 0.3992168
=0.9199

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 - (819.507 + 148.185) / 1528.85) / (1 - (853.428 + 160.83) / 1442.46)
=0.36704582 / 0.29685537
=1.2364

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
=1503.316 / 1336.058
=1.1252

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))
=(46.514 / (46.514 + 160.83)) / (52.542 / (52.542 + 148.185))
=0.22433251 / 0.26175851
=0.857

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)
=(336.461 / 1503.316) / (313.931 / 1336.058)
=0.22381256 / 0.23496809
=0.9525

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 + 538.359) / 1528.85) / ((0 + 501.169) / 1442.46)
=0.3521333 / 0.34744048
=1.0135

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
=(172.468 - 0 - 169.948) / 1528.85
=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 -2.35 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.03851.20241.09911.09731.27651.00171.11421.09770.91670.9624
GMI 1.03480.99070.9790.97120.97280.97020.96010.9420.92890.9199
AQI 1.13471.0560.98690.96250.93780.96450.8471.14161.14031.2364
SGI 1.13071.1791.21751.22111.22081.19831.16061.14071.12971.1252
DEPI 0.85370.9210.9120.96320.95080.90390.92240.92770.88670.857
SGAI 0.97030.93080.90030.88250.91770.93310.94660.96640.95060.9525
LVGI 1.21811.15461.05251.04911.03171.01030.96980.93410.97621.0135
TATA -0.0885-0.0483-0.046-0.0321-0.0335-0.0821-0.04750.0089-0.020.0016
M-score -2.75-2.39-2.44-2.37-2.23-2.72-2.53-2.18-2.51-2.35
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