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Icon PLC (NAS:ICLR)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

ICLR' s 10-Year Beneish M-Score Range
Min: -4.87   Max: 10000000
Current: -2.51

-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 -2.42.


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 * 0.9167+0.528 * 0.9289+0.404 * 1.1403+0.892 * 1.1297+0.115 * 0.8867
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9506+4.679 * -0.02-0.327 * 0.9762
=-2.51

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $373 Mil.
Revenue was 387.589 + 376.02 + 349.634 + 345.24 = $1,458 Mil.
Gross Profit was 157.626 + 148.832 + 133.494 + 130.085 = $570 Mil.
Total Current Assets was $860 Mil.
Total Assets was $1,573 Mil.
Property, Plant and Equipment(Net PPE) was $155 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $330 Mil.
Total Current Liabilities was $536 Mil.
Long-Term Debt was $0 Mil.
Net Income was 50.316 + 40.783 + 36.195 + 33.48 = $161 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 110.986 + -54.916 + 38.66 + 97.421 = $192 Mil.
Accounts Receivable was $360 Mil.
Revenue was 339.81 + 334.219 + 316.789 + 300.164 = $1,291 Mil.
Gross Profit was 126.144 + 119.988 + 114.428 + 108.157 = $469 Mil.
Total Current Assets was $775 Mil.
Total Assets was $1,362 Mil.
Property, Plant and Equipment(Net PPE) was $163 Mil.
Depreciation, Depletion and Amortization(DDA) was $45 Mil.
Selling, General & Admin. Expense(SGA) was $308 Mil.
Total Current Liabilities was $476 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)
=(372.953 / 1458.483) / (360.129 / 1290.982)
=0.25571296 / 0.27895741
=0.9167

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)
=(148.832 / 1290.982) / (157.626 / 1458.483)
=0.36307013 / 0.3908424
=0.9289

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 - (859.903 + 154.748) / 1572.726) / (1 - (775.378 + 162.822) / 1362.068)
=0.35484566 / 0.31119445
=1.1403

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
=1458.483 / 1290.982
=1.1297

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))
=(45.15 / (45.15 + 162.822)) / (50.17 / (50.17 + 154.748))
=0.21709653 / 0.24482964
=0.8867

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)
=(330.447 / 1458.483) / (307.685 / 1290.982)
=0.22656898 / 0.23833407
=0.9506

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 + 536.176) / 1572.726) / ((0 + 475.669) / 1362.068)
=0.34092143 / 0.34922559
=0.9762

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
=(160.774 - 0 - 192.151) / 1572.726
=-0.02

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 -2.51 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 0.75440.98760.9640.86681.18180.88860.84741.16191.20241.0017
GMI 1.01181.00561.02850.9991.00781.01551.07391.1290.99070.9702
AQI 0.99971.01590.8551.18431.14270.94850.98141.39071.0560.9645
SGI 1.31541.10011.39471.38441.37181.02581.0141.05081.1791.1983
DEPI 0.78480.88091.25831.44040.89220.90080.93270.8860.9210.9039
SGAI 0.94931.06230.94350.99430.96460.90480.99381.04650.93080.9331
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 -2.63-2.40-2.36-2.11-1.97-3.31-2.52-2.11-2.39-2.72

Icon PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.21171.03851.20241.09911.09731.27651.00171.11421.09770.9167
GMI 1.07411.03480.99070.9790.97120.97280.97020.96010.9420.9289
AQI 1.41091.13471.0560.98690.96250.93780.96450.8471.14161.1403
SGI 1.10141.13071.1791.21751.22111.22081.19831.16061.14071.1297
DEPI 0.81160.85370.9210.9120.96320.95080.90390.92240.92770.8867
SGAI 1.04820.97030.93080.90030.88250.91770.93310.94660.96640.9506
LVGI 1.25811.21811.15461.05251.04911.03171.01030.96980.93410.9762
TATA -0.0775-0.0885-0.0483-0.046-0.0321-0.0335-0.0821-0.04750.0089-0.02
M-score -2.47-2.75-2.39-2.44-2.37-2.23-2.72-2.53-2.18-2.51
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