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PDL BioPharma Inc (NAS:PDLI)
Beneish M-Score
-1.85 (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.

PDL BioPharma Inc has a M-score of -1.85 signals that the company is a manipulator.

PDLI' s Beneish M-Score Range Over the Past 10 Years
Min: -5.18   Max: 173.41
Current: -1.85

-5.18
173.41

During the past 13 years, the highest Beneish M-Score of PDL BioPharma Inc was 173.41. The lowest was -5.18. And the median was -2.40.


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 PDL BioPharma 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 * 1.4571+0.528 * 1+0.404 * 1.1671+0.892 * 0.9154+0.115 * 1.0255
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1002+4.679 * 0.0097-0.327 * 0.4418
=-1.85

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $84.6 Mil.
Revenue was 103.124 + 178.058 + 124.618 + 138.066 = $543.9 Mil.
Gross Profit was 103.124 + 178.058 + 124.618 + 138.066 = $543.9 Mil.
Total Current Assets was $377.2 Mil.
Total Assets was $1,055.4 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General & Admin. Expense(SGA) was $38.3 Mil.
Total Current Liabilities was $28.9 Mil.
Long-Term Debt was $230.9 Mil.
Net Income was 55.887 + 100.574 + 69.459 + 78.264 = $304.2 Mil.
Non Operating Income was -8.964 + -1.156 + -9.096 + -8.966 = $-28.2 Mil.
Cash Flow from Operations was 92.506 + 70.079 + 75.486 + 84.054 = $322.1 Mil.
Accounts Receivable was $63.4 Mil.
Revenue was 149.706 + 117.075 + 164.594 + 162.752 = $594.1 Mil.
Gross Profit was 149.706 + 117.075 + 164.594 + 162.752 = $594.1 Mil.
Total Current Assets was $500.7 Mil.
Total Assets was $1,114.1 Mil.
Property, Plant and Equipment(Net PPE) was $0.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.1 Mil.
Selling, General & Admin. Expense(SGA) was $38.0 Mil.
Total Current Liabilities was $342.7 Mil.
Long-Term Debt was $278.0 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)
=(84.615 / 543.866) / (63.439 / 594.127)
=0.1555806 / 0.10677683
=1.4571

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)
=(594.127 / 594.127) / (543.866 / 543.866)
=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 - (377.178 + 0.022) / 1055.375) / (1 - (500.667 + 0.052) / 1114.133)
=0.6425915 / 0.5505752
=1.1671

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
=543.866 / 594.127
=0.9154

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))
=(0.099 / (0.099 + 0.052)) / (0.039 / (0.039 + 0.022))
=0.65562914 / 0.63934426
=1.0255

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)
=(38.27 / 543.866) / (37.998 / 594.127)
=0.0703666 / 0.06395602
=1.1002

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)
=((230.85 + 28.934) / 1055.375) / ((277.975 + 342.748) / 1114.133)
=0.24615326 / 0.55713546
=0.4418

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
=(304.184 - -28.182 - 322.125) / 1055.375
=0.0097

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.

PDL BioPharma Inc has a M-score of -1.85 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.

PDL BioPharma Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.66240.44042.30070.07190.4121.2190.58970.69310.762191.6193
GMI 0.99060.792111111.01290.98731
AQI 0.91660.28990.4131.35511.52271.32292.5962.31640.78571.1454
SGI 1.48320.62431.13651.08131.08421.04951.03451.18261.31231.0159
DEPI 0.82121.23910.17651.11681.05960.81751.0460.94871.45131.2135
SGAI 0.98910.89290.67320.37795.8630.1151.5240.98790.89421.0175
LVGI 1.13050.97865.04640.79030.8470.89640.68590.65440.6440.55
TATA -0.1828-0.0738-0.06150.0035-0.23610.11270.0052-0.01170.08740.0601
M-score -3.31-4.02-3.05-2.91-4.62-1.41-2.14-2.01-1.92173.41

PDL BioPharma Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.689968.0871162.375946.37450.77854.13377.36841.3291191.61931.4571
GMI 1111111111
AQI 2.31643.37352.56042.89560.78570.94460.84291.07371.14541.1671
SGI 1.18811.25821.22421.33071.28441.19431.11280.9191.01590.9154
DEPI 1.03681.00691.13791.26461.32791.40220.80922.32151.21351.0255
SGAI 0.98330.83930.81510.63540.91351.17181.2681.79281.01751.1002
LVGI 0.65440.59250.66470.65980.6440.77120.6710.67360.550.4418
TATA 0.01840.03440.07330.09410.08740.07840.06420.02810.06010.0097
M-score -1.8660.75147.3240.97-1.941.013.76-1.97173.41-1.85
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