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ISIS Pharmaceuticals Inc (NAS:ISIS)
Beneish M-Score
-1.53 (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.

ISIS Pharmaceuticals Inc has a M-score of -1.53 signals that the company is a manipulator.

ISIS' s 10-Year Beneish M-Score Range
Min: -4.67   Max: 10.57
Current: -1.53

-4.67
10.57

During the past 13 years, the highest Beneish M-Score of ISIS Pharmaceuticals Inc was 10.57. The lowest was -4.67. And the median was -2.38.


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 ISIS Pharmaceuticals 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 * 1.457+0.528 * 1+0.404 * 1.0433+0.892 * 1.882+0.115 * 1.0304
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7773+4.679 * -0.0342-0.327 * 1.4848
=-1.53

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $26.9 Mil.
Revenue was 62.583 + 84.861 + 44.063 + 57.076 = $248.6 Mil.
Gross Profit was 62.583 + 84.861 + 44.063 + 57.076 = $248.6 Mil.
Total Current Assets was $835.4 Mil.
Total Assets was $955.4 Mil.
Property, Plant and Equipment(Net PPE) was $89.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.5 Mil.
Selling, General & Admin. Expense(SGA) was $23.2 Mil.
Total Current Liabilities was $100.3 Mil.
Long-Term Debt was $460.2 Mil.
Net Income was -16.717 + 31.053 + -26.676 + -12.081 = $-24.4 Mil.
Non Operating Income was 0 + 12.191 + 0.538 + -0.26 = $12.5 Mil.
Cash Flow from Operations was -42.826 + 70.684 + 1.944 + -34.015 = $-4.2 Mil.
Accounts Receivable was $9.8 Mil.
Revenue was 28.161 + 42.249 + 23.585 + 38.092 = $132.1 Mil.
Gross Profit was 28.161 + 42.249 + 23.585 + 38.092 = $132.1 Mil.
Total Current Assets was $722.1 Mil.
Total Assets was $834.6 Mil.
Property, Plant and Equipment(Net PPE) was $86.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.5 Mil.
Selling, General & Admin. Expense(SGA) was $15.9 Mil.
Total Current Liabilities was $100.8 Mil.
Long-Term Debt was $228.9 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)
=(26.934 / 248.583) / (9.823 / 132.087)
=0.10835013 / 0.07436765
=1.457

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)
=(84.861 / 132.087) / (62.583 / 248.583)
=1 / 1
=1

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 - (835.427 + 89.047) / 955.433) / (1 - (722.053 + 86.641) / 834.616)
=0.03240311 / 0.03105859
=1.0433

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
=248.583 / 132.087
=1.882

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))
=(9.516 / (9.516 + 86.641)) / (9.461 / (9.461 + 89.047))
=0.09896315 / 0.09604296
=1.0304

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)
=(23.225 / 248.583) / (15.876 / 132.087)
=0.09342956 / 0.12019351
=0.7773

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)
=((460.211 + 100.288) / 955.433) / ((228.923 + 100.836) / 834.616)
=0.58664396 / 0.39510266
=1.4848

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
=(-24.421 - 12.469 - -4.213) / 955.433
=-0.0342

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.

ISIS Pharmaceuticals Inc has a M-score of -1.53 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.

ISIS Pharmaceuticals Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.41411.6510.65680.36312.33130.12776.10040.073214.7360.2418
GMI 1111111111
AQI 1.18420.53831.03190.38980.76731.12011.00980.98410.5261.0537
SGI 0.94160.37023.92651.83721.13440.8920.91351.02991.44331.4541
DEPI 0.5631.061.03131.72741.111.24171.8811.02941.03621.066
SGAI 0.87493.83570.29690.57560.92640.90121.19980.95020.82590.9285
LVGI 0.73240.62731.40860.59520.72921.22580.66920.90141.37891.5505
TATA -0.06830.0198-0.1831-0.39930.39780.00960.0547-0.1484-0.1493-0.0608
M-score -3.26-2.90-1.04-4.140.75-3.312.57-3.969.57-3.20

ISIS Pharmaceuticals Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.70381.42293.336914.73597.752415.48961.51520.24181.457
GMI 111111111
AQI 0.95390.66990.54790.5260.54630.79110.87111.05371.0433
SGI 1.20760.9131.09021.44331.08111.33781.37341.4541.882
DEPI 00000.28050.54680.81151.0661.0304
SGAI 0.84161.09970.9450.8261.13290.9640.9720.92840.7773
LVGI 0.89410.66640.66491.37890.74551.02041.14121.55051.4848
TATA -0.1028-0.1167-0.198-0.1493-0.1602-0.0951-0.0207-0.0608-0.0342
M-score -3.12-2.87-1.359.452.8510.57-1.88-3.20-1.53
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