Switch to:
Icon PLC (NAS:ICLR)
Beneish M-Score
-2.26 (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 -2.26 suggests that the company is not a manipulator.

ICLR' s 10-Year Beneish M-Score Range
Min: -4.84   Max: -0.59
Current: -2.26

-4.84
-0.59

During the past 13 years, the highest Beneish M-Score of Icon PLC was -0.59. The lowest was -4.84. And the median was -2.43.


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 * 1.4048+0.528 * 0.9808+0.404 * 0.847+0.892 * 1.155+0.115 * 0.9224
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9726+4.679 * -0.0475-0.327 * 0.9698
=-2.26

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $480 Mil.
Revenue was 476.544 + 450.062 + 445.598 + 334.219 = $1,706 Mil.
Gross Profit was 133.494 + 345.24 + 339.81 + 119.988 = $939 Mil.
Total Current Assets was $906 Mil.
Total Assets was $1,485 Mil.
Property, Plant and Equipment(Net PPE) was $157 Mil.
Depreciation, Depletion and Amortization(DDA) was $47 Mil.
Selling, General & Admin. Expense(SGA) was $746 Mil.
Total Current Liabilities was $500 Mil.
Long-Term Debt was $0 Mil.
Net Income was 36.195 + 33.48 + 27.808 + 22.479 = $120 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 38.66 + 97.421 + 43.589 + 10.846 = $191 Mil.
Accounts Receivable was $296 Mil.
Revenue was 419.059 + 406.353 + 374.965 + 277.007 = $1,477 Mil.
Gross Profit was 114.428 + 300.164 + 285.502 + 96.88 = $797 Mil.
Total Current Assets was $656 Mil.
Total Assets was $1,231 Mil.
Property, Plant and Equipment(Net PPE) was $163 Mil.
Depreciation, Depletion and Amortization(DDA) was $43 Mil.
Selling, General & Admin. Expense(SGA) was $664 Mil.
Total Current Liabilities was $427 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)
=(480.277 / 1706.423) / (296.005 / 1477.384)
=0.28145249 / 0.20035752
=1.4048

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)
=(345.24 / 1477.384) / (133.494 / 1706.423)
=0.53944946 / 0.54999962
=0.9808

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 - (905.702 + 157.187) / 1484.541) / (1 - (655.738 + 162.629) / 1231.22)
=0.28402853 / 0.33532025
=0.847

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
=1706.423 / 1477.384
=1.155

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))
=(43.477 / (43.477 + 162.629)) / (46.606 / (46.606 + 157.187))
=0.21094485 / 0.22869284
=0.9224

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)
=(746.136 / 1706.423) / (664.168 / 1477.384)
=0.43725149 / 0.44955678
=0.9726

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 + 499.779) / 1484.541) / ((0 + 427.398) / 1231.22)
=0.33665557 / 0.34713374
=0.9698

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
=(119.962 - 0 - 190.516) / 1484.541
=-0.0475

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 -2.26 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

May04May05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.7540.9990.96280.86471.19750.94080.62831.10821.22490.9724
GMI 1.01181.00561.02850.9991.00781.01551.50711.10280.34730.9901
AQI 0.99971.01590.8551.18431.14270.94850.98141.39071.0560.9645
SGI 1.31541.10011.39471.38441.37181.02581.42311.02641.161.1864
DEPI 0.78480.88091.25831.44040.89220.90080.93270.8860.9210.9039
SGAI 0.94931.06230.94350.99430.96460.90480.70811.07133.36420.9786
LVGI 0.82920.92471.12331.14451.07940.75350.79951.12991.15461.0103
TATA -0.0542-0.0011-0.03310.0148-0.0036-0.177-0.00040.0026-0.0483-0.0821
M-score -2.63-2.39-2.36-2.11-1.95-3.27-2.08-2.20-3.14-2.75

Icon PLC Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.10820.98221.12430.95451.40561.2281.2091.42220.91691.4048
GMI 1.10281.08721.03680.70810.43680.47630.48550.68251.05710.9808
AQI 1.39071.4171.41091.13471.0560.98690.96250.93780.96450.847
SGI 1.02641.03631.06311.15361.01091.11961.12551.07181.25811.155
DEPI 0.8860.8460.81160.85370.9210.9120.96320.95080.90390.9224
SGAI 1.07131.05821.0861.58592.53662.25132.16781.45340.89980.9726
LVGI 1.12991.14881.25811.21811.15461.05251.04911.03171.01030.9698
TATA 0.0026-0.0556-0.0775-0.0885-0.0483-0.046-0.0321-0.0335-0.0821-0.0475
M-score -2.20-2.59-2.61-3.09-2.92-2.90-2.83-2.47-2.69-2.26
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide