Switch to:
Illumina Inc (NAS:ILMN)
Beneish M-Score
-2.69 (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.

Illumina Inc has a M-score of -2.69 suggests that the company is not a manipulator.

ILMN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.42   Max: 5.89
Current: -2.69

-4.42
5.89

During the past 13 years, the highest Beneish M-Score of Illumina Inc was 5.89. The lowest was -4.42. And the median was -2.55.


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 Illumina Inc 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 * 0.8334+0.528 * 1.0182+0.404 * 0.9571+0.892 * 1.1074+0.115 * 1.6161
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0696+4.679 * -0.0482-0.327 * 0.9263
=-2.69

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $382 Mil.
Revenue was 607.139 + 600.124 + 571.763 + 591.548 = $2,371 Mil.
Gross Profit was 426.15 + 423.805 + 397.054 + 410.359 = $1,657 Mil.
Total Current Assets was $2,278 Mil.
Total Assets was $4,228 Mil.
Property, Plant and Equipment(Net PPE) was $634 Mil.
Depreciation, Depletion and Amortization(DDA) was $136 Mil.
Selling, General & Admin. Expense(SGA) was $584 Mil.
Total Current Liabilities was $629 Mil.
Long-Term Debt was $1,041 Mil.
Net Income was 128.888 + 120.412 + 89.587 + 104.477 = $443 Mil.
Non Operating Income was -0.186 + -0.15 + 1.452 + -1.282 = $-0 Mil.
Cash Flow from Operations was 150.3 + 217.047 + 39.738 + 240.378 = $647 Mil.
Accounts Receivable was $413 Mil.
Revenue was 550.271 + 539.378 + 538.565 + 512.379 = $2,141 Mil.
Gross Profit was 387.539 + 376.365 + 375.027 + 384.937 = $1,524 Mil.
Total Current Assets was $2,210 Mil.
Total Assets was $3,734 Mil.
Property, Plant and Equipment(Net PPE) was $309 Mil.
Depreciation, Depletion and Amortization(DDA) was $124 Mil.
Selling, General & Admin. Expense(SGA) was $493 Mil.
Total Current Liabilities was $584 Mil.
Long-Term Debt was $1,008 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)
=(381.632 / 2370.574) / (413.474 / 2140.593)
=0.16098717 / 0.19315862
=0.8334

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)
=(1523.868 / 2140.593) / (1657.368 / 2370.574)
=0.71189058 / 0.69914206
=1.0182

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 - (2277.836 + 633.856) / 4227.827) / (1 - (2210.428 + 308.722) / 3733.548)
=0.31130295 / 0.32526648
=0.9571

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
=2370.574 / 2140.593
=1.1074

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))
=(123.61 / (123.61 + 308.722)) / (136.245 / (136.245 + 633.856))
=0.28591453 / 0.17691835
=1.6161

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)
=(584.165 / 2370.574) / (493.155 / 2140.593)
=0.24642344 / 0.23038242
=1.0696

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)
=((1040.765 + 628.855) / 4227.827) / ((1007.935 + 583.857) / 3733.548)
=0.39491209 / 0.42634834
=0.9263

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
=(443.364 - -0.166 - 647.463) / 4227.827
=-0.0482

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.

Illumina Inc has a M-score of -2.69 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 local exchange's currency.

Illumina Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.90361.04611.02591.01830.77480.8981.13620.89830.92491.1169
GMI 1.0091.06190.99630.92781.0241.00480.99751.04970.92030.9989
AQI 5.70081.41890.72350.83481.05850.94321.03291.66260.89340.9541
SGI 2.51131.98711.56281.16241.35481.16931.08811.23741.30971.1925
DEPI 1.09040.71471.07691.12590.85990.75811.16220.85151.09341.1056
SGAI 0.76950.94260.93541.02490.9251.17521.01521.2350.70290.9322
LVGI 0.51935.0970.50841.05970.94191.63730.9090.88931.33020.8617
TATA 0.0032-0.3388-0.038-0.0723-0.0748-0.106-0.0717-0.1064-0.0359-0.0557
M-score 0.91-4.30-2.06-2.77-2.67-3.21-2.55-2.59-2.57-2.41

Illumina Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.9840.9090.92490.9121.10941.21221.11691.01010.90450.8334
GMI 1.01860.94450.92030.9120.91550.94820.99891.01021.01471.0182
AQI 1.11330.8890.89340.83440.80460.9490.95411.06291.06360.9571
SGI 1.26751.29271.30971.30981.28431.23281.19251.13841.11721.1074
DEPI 0.90731.0241.09341.15641.15721.07431.10561.151.35231.6161
SGAI 0.69980.72260.70290.86150.85880.84990.93221.02461.07351.0696
LVGI 1.21581.2631.33021.29330.8720.76120.86170.8140.86840.9263
TATA -0.0763-0.0717-0.0359-0.0239-0.014-0.0154-0.0557-0.0568-0.0612-0.0482
M-score -2.59-2.75-2.57-2.56-2.23-2.08-2.41-2.51-2.65-2.69
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)
FEEDBACK