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Icon PLC (NAS:ICLR)
Beneish M-Score
-2.31 (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 -1.81 signals that the company is a manipulator.

ICLR' s 10-Year Beneish M-Score Range
Min: -4.65   Max: -0.83
Current: -2.31

-4.65
-0.83

During the past 13 years, the highest Beneish M-Score of Icon PLC was -0.83. The lowest was -4.65. And the median was -2.44.


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 * 1.5076+0.528 * 0.9536+0.404 * 1.1416+0.892 * 1.1249+0.115 * 0.9277
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9999+4.679 * 0.0089-0.327 * 0.9341
=-1.81

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $570 Mil.
Revenue was 506.404 + 476.544 + 450.062 + 445.598 = $1,879 Mil.
Gross Profit was 148.832 + 133.494 + 345.24 + 339.81 = $967 Mil.
Total Current Assets was $798 Mil.
Total Assets was $1,526 Mil.
Property, Plant and Equipment(Net PPE) was $160 Mil.
Depreciation, Depletion and Amortization(DDA) was $48 Mil.
Selling, General & Admin. Expense(SGA) was $756 Mil.
Total Current Liabilities was $503 Mil.
Long-Term Debt was $0 Mil.
Net Income was 40.783 + 36.195 + 33.48 + 27.808 = $138 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -54.916 + 38.66 + 97.421 + 43.589 = $125 Mil.
Accounts Receivable was $336 Mil.
Revenue was 469.626 + 419.059 + 406.353 + 374.965 = $1,670 Mil.
Gross Profit was 119.988 + 114.428 + 300.164 + 285.502 = $820 Mil.
Total Current Assets was $710 Mil.
Total Assets was $1,293 Mil.
Property, Plant and Equipment(Net PPE) was $162 Mil.
Depreciation, Depletion and Amortization(DDA) was $44 Mil.
Selling, General & Admin. Expense(SGA) was $672 Mil.
Total Current Liabilities was $456 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)
=(569.896 / 1878.608) / (336.035 / 1670.003)
=0.30336079 / 0.2012182
=1.5076

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)
=(133.494 / 1670.003) / (148.832 / 1878.608)
=0.49106618 / 0.51494298
=0.9536

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 - (798.097 + 160.17) / 1525.74) / (1 - (709.541 + 162.28) / 1293.122)
=0.37193296 / 0.32580143
=1.1416

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
=1878.608 / 1670.003
=1.1249

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))
=(44.167 / (44.167 + 162.28)) / (48.008 / (48.008 + 160.17))
=0.21393869 / 0.23061034
=0.9277

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)
=(756.21 / 1878.608) / (672.306 / 1670.003)
=0.40253741 / 0.40257772
=0.9999

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 + 502.586) / 1525.74) / ((0 + 456.034) / 1293.122)
=0.32940475 / 0.35266123
=0.9341

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
=(138.266 - 0 - 124.754) / 1525.74
=0.0089

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 -1.81 signals that the company is likely to 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.98221.12430.95451.40561.2281.11091.31150.84741.30151.5076
GMI 1.08721.03680.70810.43680.47630.52830.74011.14391.05860.9536
AQI 1.4171.41091.13471.0560.98690.96250.93780.96450.8471.1416
SGI 1.03631.06311.15361.01091.11961.22481.16221.36141.24671.1249
DEPI 0.8460.81160.85370.9210.9120.96320.95080.90390.92240.9277
SGAI 1.05821.0861.58592.53662.25131.9921.34030.83150.90110.9999
LVGI 1.14881.25811.21811.15461.05251.04911.03171.01030.96980.9341
TATA -0.0556-0.0775-0.0885-0.0483-0.046-0.0321-0.0335-0.0821-0.04750.0089
M-score -2.59-2.61-3.09-2.92-2.90-2.78-2.44-2.61-2.22-1.81
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