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Onyx Pharmaceuticals, Inc. (NAS:ONXX)
Beneish M-Score
0.00 (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.

Onyx Pharmaceuticals, Inc. has a M-score of -0.22 signals that the company is a manipulator.

ONXX' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Onyx Pharmaceuticals, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.


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 Onyx 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 * 3.0339+0.528 * 1.0105+0.404 * 0.7565+0.892 * 1.1295+0.115 * 0.3932
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3161+4.679 * 0.0887-0.327 * 0.7685
=-0.22

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

This Year (Jun13) TTM:Last Year (Jun12) TTM:
Accounts Receivable was $211.5 Mil.
Revenue was 153.026 + 145.492 + 127.919 + 89.511 = $515.9 Mil.
Gross Profit was 150.983 + 143.524 + 127.087 + 89.015 = $510.6 Mil.
Total Current Assets was $1,021.7 Mil.
Total Assets was $1,679.2 Mil.
Property, Plant and Equipment(Net PPE) was $32.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.8 Mil.
Selling, General & Admin. Expense(SGA) was $240.0 Mil.
Total Current Liabilities was $122.4 Mil.
Long-Term Debt was $180.7 Mil.
Net Income was -53.168 + -33.671 + -42.921 + 17.396 = $-112.4 Mil.
Non Operating Income was 0.094 + -0.156 + -2.729 + -0.569 = $-3.4 Mil.
Cash Flow from Operations was -3.351 + -111.173 + -100.993 + -42.509 = $-258.0 Mil.
Accounts Receivable was $61.7 Mil.
Revenue was 72.704 + 72.031 + 237.032 + 75.041 = $456.8 Mil.
Gross Profit was 72.704 + 72.031 + 237.032 + 75.041 = $456.8 Mil.
Total Current Assets was $660.1 Mil.
Total Assets was $1,365.2 Mil.
Property, Plant and Equipment(Net PPE) was $33.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.2 Mil.
Selling, General & Admin. Expense(SGA) was $161.4 Mil.
Total Current Liabilities was $152.1 Mil.
Long-Term Debt was $168.5 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)
=(211.501 / 515.948) / (61.721 / 456.808)
=0.40992697 / 0.13511366
=3.0339

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)
=(143.524 / 456.808) / (150.983 / 515.948)
=1 / 0.98965206
=1.0105

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 - (1021.725 + 32.331) / 1679.242) / (1 - (660.062 + 33.305) / 1365.197)
=0.3723025 / 0.49211213
=0.7565

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
=515.948 / 456.808
=1.1295

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))
=(7.214 / (7.214 + 33.305)) / (26.753 / (26.753 + 32.331))
=0.17803993 / 0.45279602
=0.3932

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)
=(239.978 / 515.948) / (161.443 / 456.808)
=0.46512052 / 0.35341544
=1.3161

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)
=((180.7 + 122.351) / 1679.242) / ((168.474 + 152.138) / 1365.197)
=0.18046893 / 0.23484669
=0.7685

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
=(-112.364 - -3.36 - -258.026) / 1679.242
=0.0887

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.

Onyx Pharmaceuticals, Inc. has a M-score of -0.22 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.

Onyx Pharmaceuticals, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 112.11378.53430.00143.54631.10920.77460.81793.1395
GMI 1111111111.0037
AQI 0.07780.047514.7860.50410.0341149.86035.88781.00550.9081.009
SGI 00.184220.25361.7162.14911.29351.29091.3780.8099
DEPI 0.49493.6980.38080.82711.37440.86891.58930.70951.16110.6044
SGAI 112.94731.38555.04340.00330.62250.97990.86151.10781.5882
LVGI 0.53120.26791.94770.57650.29162.76432.90540.87851.16681.1627
TATA -0.06330.0009-0.07790.11-0.0160.0204-0.0143-0.08310.0210.0304
M-score -3.95-5.094.193.52318.3460.60-0.76-2.78-2.30-0.73

Onyx Pharmaceuticals, Inc. Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13
DSRI 0.9080.79851.41620.81790.780.87090.81993.13954.25433.0339
GMI 1111111.00111.00371.00761.0105
AQI 1.01380.97151.02310.9080.9270.93220.89641.0090.77830.7565
SGI 1.26171.21850.86761.3781.37511.3931.68240.80990.96361.1295
DEPI 1.06881.81021.24261.16111.27080.79421.51110.60440.38840.3932
SGAI 0.8770.22720.40021.03471.00972.05121.4871.27261.24941.3161
LVGI 0.80.96661.06081.16681.31851.4691.24361.16270.88790.7685
TATA -0.0837-0.0514-0.05440.0210.0152-0.00770.05070.03090.07780.0887
M-score -2.62-2.49-2.35-2.29-2.38-2.67-1.95-0.680.68-0.22
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