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Icon PLC (NAS:ICLR)
Beneish M-Score
-2.94 (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 -2.94 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: -2.94

-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 -2.49.


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 * 0.6667+0.528 * 0.9673+0.404 * 0.9828+0.892 * 1.0352+0.115 * 0.9824
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9546+4.679 * -0.0143-0.327 * 1.3164
=-2.94

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $367 Mil.
Revenue was 410.63 + 400.522 + 403.349 + 394.741 = $1,609 Mil.
Gross Profit was 172.646 + 171.919 + 173.963 + 168.186 = $687 Mil.
Total Current Assets was $909 Mil.
Total Assets was $1,750 Mil.
Property, Plant and Equipment(Net PPE) was $151 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $327 Mil.
Total Current Liabilities was $457 Mil.
Long-Term Debt was $348 Mil.
Net Income was 61.074 + 62.964 + 63.542 + 61.542 = $249 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 24.316 + 59.438 + 116.104 + 74.236 = $274 Mil.
Accounts Receivable was $532 Mil.
Revenue was 388.657 + 388.231 + 390.073 + 387.589 = $1,555 Mil.
Gross Profit was 163.696 + 160.153 + 160.197 + 157.626 = $642 Mil.
Total Current Assets was $832 Mil.
Total Assets was $1,636 Mil.
Property, Plant and Equipment(Net PPE) was $147 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General & Admin. Expense(SGA) was $331 Mil.
Total Current Liabilities was $572 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)
=(366.903 / 1609.242) / (531.622 / 1554.55)
=0.2279974 / 0.34197806
=0.6667

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)
=(641.672 / 1554.55) / (686.714 / 1609.242)
=0.41277026 / 0.42673134
=0.9673

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 - (908.988 + 150.987) / 1750.24) / (1 - (832.347 + 147.31) / 1636.254)
=0.39438306 / 0.40128061
=0.9828

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
=1609.242 / 1554.55
=1.0352

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))
=(56.241 / (56.241 + 147.31)) / (59.085 / (59.085 + 150.987))
=0.27629931 / 0.28126071
=0.9824

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)
=(326.868 / 1609.242) / (330.767 / 1554.55)
=0.20311923 / 0.21277347
=0.9546

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)
=((348.322 + 456.915) / 1750.24) / ((0 + 571.862) / 1636.254)
=0.46007233 / 0.34949464
=1.3164

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
=(249.122 - 0 - 274.094) / 1750.24
=-0.0143

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 -2.94 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.9640.86681.18180.88860.84741.16191.20241.00170.96241.0528
GMI 1.02850.9991.00781.01551.07391.1290.99070.97020.91990.9441
AQI 0.8551.18431.14270.94850.98141.39071.0560.96451.23641.1162
SGI 1.39471.38441.37181.02581.0141.05081.1791.19831.12521.0477
DEPI 1.25831.44040.89220.90080.93270.8860.9210.90390.8570.9435
SGAI 0.94350.99430.96460.90480.99381.04650.93080.93310.95250.9271
LVGI 1.12331.14451.07940.75350.79951.12991.15461.01031.01351.5229
TATA -0.02550.0188-0.0036-0.177-0.00040.0026-0.0483-0.08210.0016-0.0233
M-score -2.32-2.09-1.97-3.31-2.52-2.11-2.39-2.72-2.35-2.65

Icon PLC Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.11421.09770.91670.96240.95141.25990.96811.05280.97290.6667
GMI 0.96010.9420.92890.91990.9160.92490.93580.94410.9520.9673
AQI 0.8471.14161.14031.23641.42981.07891.00571.11620.97030.9828
SGI 1.16061.14071.12971.12521.12641.1021.07081.04771.02941.0352
DEPI 0.92240.92770.88670.8570.81810.83460.88560.94350.99120.9824
SGAI 0.94660.96640.95060.95250.94310.91680.92910.92710.94540.9546
LVGI 0.96980.93410.97621.01351.03381.0611.47191.52291.46211.3164
TATA -0.04750.0089-0.020.0016-0.0002-0.04-0.0096-0.0233-0.0174-0.0143
M-score -2.53-2.18-2.51-2.35-2.31-2.37-2.68-2.65-2.74-2.94
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