Biogen (BUE:BIIB) Beneish M-Score

: -2.22 (As of Today)

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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Biogen's Beneish M-Score or its related term are showing as below:

BUE:BIIB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75 Med: -2.54 Max: 1.83
Current: -2.22

During the past 13 years, the highest Beneish M-Score of Biogen was 1.83. The lowest was -3.75. And the median was -2.54.

Biogen Beneish M-Score Historical Data

The historical data trend for Biogen's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Biogen Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

-2.62

-2.67

-2.84

-2.91

-2.22

Biogen Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Beneish M-Score																-2.91	-2.78	-2.61	-2.59	-2.22

Competitive Comparison

For the Drug Manufacturers - General subindustry, Biogen's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Biogen Beneish M-Score Distribution

For the Drug Manufacturers industry and Healthcare sector, Biogen's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Biogen's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.

Biogen Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Biogen for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.4019

0.528 * 1.0358

0.404 * 0.8795

0.892 * 1.2896

0.115 * 1.1002

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9679

4.679 * 0.029586

0.327 * 0.8818

-1.69

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was ARS358,167 Mil.
Revenue was 426501.588 + 348556.07 + 311546.407 + 271844.568 = ARS1,358,449 Mil.
Gross Profit was 330790.206 + 283319.046 + 253306.686 + 190896.776 = ARS1,058,313 Mil.
Total Current Assets was ARS1,641,495 Mil.
Total Assets was ARS4,116,495 Mil.
Property, Plant and Equipment(Net PPE) was ARS620,724 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS68,441 Mil.
Selling, General, & Admin. Expense(SGA) was ARS321,431 Mil.
Total Current Liabilities was ARS548,685 Mil.
Long-Term Debt & Capital Lease Obligation was ARS1,108,837 Mil.
Net Income was 92274.557 + 157666.563 + 127309.142 + 32619.63 = ARS409,870 Mil.
Non Operating Income was 13445.53 + 80924.479 + 50021.182 + -24813.682 = ARS119,578 Mil.
Cash Flow from Operations was -29338.749 + 91845.949 + 88623.046 + 17372.798 = ARS168,503 Mil.

Total Receivables was ARS198,112 Mil.
Revenue was 276086.456 + 271720.839 + 262875.759 + 242675.525 = ARS1,053,359 Mil.
Gross Profit was 209422.959 + 221677.036 + 219328.376 + 199608.276 = ARS850,037 Mil.
Total Current Assets was ARS793,428 Mil.
Total Assets was ARS2,411,368 Mil.
Property, Plant and Equipment(Net PPE) was ARS382,934 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS46,972 Mil.
Selling, General, & Admin. Expense(SGA) was ARS257,497 Mil.
Total Current Liabilities was ARS434,075 Mil.
Long-Term Debt & Capital Lease Obligation was ARS666,978 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(358167.45 / 1358448.633)	/	(198112.079 / 1053358.58)
	=	0.263659	/	0.188077
	=	1.4019

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)
	=	(850036.647 / 1053358.58)	/	(1058312.714 / 1358448.633)
	=	0.806977	/	0.77906
	=	1.0358

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1641494.635 + 620724.108) / 4116494.751)	/	(1 - (793427.918 + 382933.874) / 2411368.476)
	=	0.45045	/	0.51216
	=	0.8795

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	1358448.633	/	1053358.58
	=	1.2896

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(46972.213 / (46972.213 + 382933.874))	/	(68441.159 / (68441.159 + 620724.108))
	=	0.109262	/	0.09931
	=	1.1002

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(321430.927 / 1358448.633)	/	(257496.949 / 1053358.58)
	=	0.236616	/	0.244453
	=	0.9679

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((1108837.069 + 548684.905) / 4116494.751)	/	((666978.342 + 434075.209) / 2411368.476)
	=	0.402654	/	0.456609
	=	0.8818

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
	=	(409869.892 - 119577.508	-	168503.044)	/	4116494.751
	=	0.029586

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Biogen has a M-score of -1.69 signals that the company is likely to be a manipulator.

Biogen Beneish M-Score Related Terms

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Biogen (BUE:BIIB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Biogen Inc (BUE:BIIB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BIIB:USA BIIB:Mexico IDP:Germany BIIB34:Brazil BIIB:Austria

Address

225 Binney Street, Cambridge, MA, USA, 02142

Website

http://www.biogen.com

Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel MS drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is co-promoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with SOBI) were spun off as part of Bioverativ in 2017. Biogen has several drug candidates in phase 3 trials in neurology and neurodegenerative diseases and has launched Spinraza with partner Ionis. Aduhelm was approved as the firm's first Alzheimer's disease therapy in June 2021, followed by Leqembi in January 2023.