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Icon PLC (NAS:ICLR)
Beneish M-Score
-2.71 (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.

Icon PLC has a M-score of -2.71 suggests that the company is not a manipulator.

ICLR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.87   Max: 10000000
Current: -2.71

-4.87
10000000

During the past 13 years, the highest Beneish M-Score of Icon PLC was 10000000.00. The lowest was -4.87. And the median was -2.47.


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 Icon PLC 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 * 0.8786+0.528 * 1.0144+0.404 * 0.9909+0.892 * 1.0697+0.115 * 0.9937
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.93+4.679 * -0.0478-0.327 * 0.9154
=-2.71

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $341 Mil.
Revenue was 431.954 + 435.134 + 420.201 + 410.63 = $1,698 Mil.
Gross Profit was 181.495 + 183.632 + 176.957 + 172.646 = $715 Mil.
Total Current Assets was $982 Mil.
Total Assets was $1,855 Mil.
Property, Plant and Equipment(Net PPE) was $149 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $326 Mil.
Total Current Liabilities was $516 Mil.
Long-Term Debt was $349 Mil.
Net Income was 71.409 + 74.262 + 63.879 + 61.074 = $271 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 159.327 + 123.539 + 51.911 + 24.434 = $359 Mil.
Accounts Receivable was $362 Mil.
Revenue was 400.522 + 403.349 + 394.741 + 388.657 = $1,587 Mil.
Gross Profit was 171.919 + 173.963 + 168.186 + 163.696 = $678 Mil.
Total Current Assets was $938 Mil.
Total Assets was $1,796 Mil.
Property, Plant and Equipment(Net PPE) was $150 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $328 Mil.
Total Current Liabilities was $566 Mil.
Long-Term Debt was $348 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)
=(340.54 / 1697.919) / (362.322 / 1587.269)
=0.20056316 / 0.22826755
=0.8786

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)
=(677.764 / 1587.269) / (714.73 / 1697.919)
=0.42700009 / 0.4209447
=1.0144

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 - (982.206 + 148.644) / 1855.215) / (1 - (938.479 + 149.886) / 1796.135)
=0.39044801 / 0.39405167
=0.9909

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
=1697.919 / 1587.269
=1.0697

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))
=(58.872 / (58.872 + 149.886)) / (58.903 / (58.903 + 148.644))
=0.28201075 / 0.2838056
=0.9937

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)
=(326.326 / 1697.919) / (328.021 / 1587.269)
=0.19219174 / 0.20665747
=0.93

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)
=((348.604 + 515.544) / 1855.215) / ((348.278 + 565.704) / 1796.135)
=0.46579399 / 0.50886041
=0.9154

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
=(270.624 - 0 - 359.211) / 1855.215
=-0.0478

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.

Icon PLC has a M-score of -2.71 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.

Icon PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.86681.18180.88860.84741.16191.20241.00170.96241.05280.9614
GMI 0.9991.00781.01551.07391.1290.99070.97020.91990.94410.9993
AQI 1.18431.14270.94850.98141.39071.0560.96451.23641.11730.9601
SGI 1.38441.37181.02581.0141.05081.1791.19831.12521.04771.0581
DEPI 1.44040.89220.90080.93270.8860.9210.90390.8570.94350.9712
SGAI 1.01790.94230.90480.99381.04650.93080.93310.95250.92710.942
LVGI 1.14451.07940.75350.79951.12991.15461.01031.01351.52160.8616
TATA -0.4878-0.0036-0.177-0.00040.0026-0.0483-0.08210.0022-0.0230.0016
M-score -4.47-1.96-3.31-2.52-2.11-2.39-2.72-2.35-2.64-2.42

Icon PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.96240.95141.25990.96811.05280.97290.66670.99750.96140.8786
GMI 0.91990.9160.92490.93580.94410.9520.96730.98160.99931.0144
AQI 1.23641.42981.07891.00571.11730.97030.98281.09160.96010.9909
SGI 1.12521.12641.1021.07081.04771.02941.03521.04671.05811.0697
DEPI 0.8570.81810.83460.88560.94350.99120.98240.98260.97120.9937
SGAI 0.95250.94310.91680.92910.92710.94540.95460.94640.9420.93
LVGI 1.01351.03381.0611.47191.52161.46211.31640.90110.86160.9154
TATA 0.00220.0004-0.0394-0.0091-0.023-0.0171-0.0140.00010.0016-0.0478
M-score -2.35-2.30-2.37-2.68-2.64-2.74-2.94-2.37-2.42-2.71
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