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Illumina (Illumina) Beneish M-Score

: -2.73 (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 -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ILMN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.72   Max: -1.54
Current: -2.73

During the past 13 years, the highest Beneish M-Score of Illumina was -1.54. The lowest was -3.04. And the median was -2.72.


Illumina Beneish M-Score Historical Data

The historical data trend for Illumina'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.

Illumina Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.43 -3.04 -1.54 -2.75 -2.73

Illumina Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.75 -2.63 -2.62 -2.72 -2.73

Competitive Comparison

For the Diagnostics & Research subindustry, Illumina'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.


Illumina Beneish M-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Illumina's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Illumina's Beneish M-Score falls into.



Illumina 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 Illumina 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 * 1.1131+0.528 * 1.0637+0.404 * 1.038+0.892 * 0.9828+0.115 * 0.8459
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2688+4.679 * -0.075759-0.327 * 0.9071
=-2.73

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $734 Mil.
Revenue was 1122 + 1119 + 1176 + 1087 = $4,504 Mil.
Gross Profit was 674 + 684 + 732 + 655 = $2,745 Mil.
Total Current Assets was $2,609 Mil.
Total Assets was $10,111 Mil.
Property, Plant and Equipment(Net PPE) was $1,551 Mil.
Depreciation, Depletion and Amortization(DDA) was $432 Mil.
Selling, General, & Admin. Expense(SGA) was $1,616 Mil.
Total Current Liabilities was $1,570 Mil.
Long-Term Debt & Capital Lease Obligation was $2,176 Mil.
Net Income was -175 + -754 + -234 + 3 = $-1,160 Mil.
Non Operating Income was -8 + -842 + -11 + -11 = $-872 Mil.
Cash Flow from Operations was 224 + 139 + 105 + 10 = $478 Mil.
Total Receivables was $671 Mil.
Revenue was 1083 + 1115 + 1162 + 1223 = $4,583 Mil.
Gross Profit was 672 + 717 + 767 + 815 = $2,971 Mil.
Total Current Assets was $3,561 Mil.
Total Assets was $12,252 Mil.
Property, Plant and Equipment(Net PPE) was $1,744 Mil.
Depreciation, Depletion and Amortization(DDA) was $394 Mil.
Selling, General, & Admin. Expense(SGA) was $1,296 Mil.
Total Current Liabilities was $2,773 Mil.
Long-Term Debt & Capital Lease Obligation was $2,231 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)
=(734 / 4504) / (671 / 4583)
=0.162966 / 0.146411
=1.1131

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)
=(2971 / 4583) / (2745 / 4504)
=0.648265 / 0.609458
=1.0637

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 - (2609 + 1551) / 10111) / (1 - (3561 + 1744) / 12252)
=0.588567 / 0.567009
=1.038

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
=4504 / 4583
=0.9828

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))
=(394 / (394 + 1744)) / (432 / (432 + 1551))
=0.184284 / 0.217852
=0.8459

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)
=(1616 / 4504) / (1296 / 4583)
=0.358792 / 0.282784
=1.2688

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)
=((2176 + 1570) / 10111) / ((2231 + 2773) / 12252)
=0.370488 / 0.408423
=0.9071

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
=(-1160 - -872 - 478) / 10111
=-0.075759

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.

Illumina has a M-score of -2.73 suggests that the company is unlikely to be a manipulator.


Illumina Beneish M-Score Related Terms

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Illumina (Illumina) Business Description

Address
5200 Illumina Way, San Diego, CA, USA, 92122
Illumina provides tools and services to analyze genetic material with life science and clinical lab applications. The company generates about 90% of its revenue from sequencing instruments, consumables, and services. Illumina's high-throughput technology enables whole genome sequencing in humans and other large organisms. Its lower throughput tools enable applications that require smaller data outputs, such as viral and cancer tumor screening. Illumina also sells microarrays (about 10% of sales) that enable lower-cost, focused genetic screening with primarily consumer and agricultural applications.
Executives
Aimee L Hoyt officer: SVP, Chief People Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Jacob Thaysen director, officer: Chief Executive Officer 5301 STEVENS CREEK BLVD., SANTA CLARA CA 95051
Susan H Tousi officer: SVP Product Development 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Steven Barnard officer: SVP, Chief Technology Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Scott B. Ullem director C/O EDWARDS LIFESCIENCES CORPORATION, ONE EDWARDS WAY, IRVINE CA 92614
Stephen P Macmillan director 250 CAMPUS DRIVE, MARLBOROUGH MA 01752
Andrew Teno director C/O FIR TREE INC., 55 WEST 46TH STREET, 29TH FLOOR, NEW YORK NY 10036
Alexander Aravanis officer: SVP, Chief Technology Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Scott D Ericksen officer: VP, Chief Accounting Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Charles Dadswell officer: Sr VP & General Counsel 5200 ILLUMINA WAY, SAN DIEGO CA 92122
John Edward Frank officer: Chief Public Affairs Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Phillip G. Febbo officer: SVP Chief Medical Officer C/O GENOMIC HEALTH, INC., 301 PENOBSCOT DRIVE, REDWOOD CITY CA 94063
Carissa Rollins officer: SVP, Chief Information Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Kevin Carl Pegels officer: Chief of Global Operations 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Jay T Flatley officer: President & CEO 9885 TOWNE CENTRE DR, SAN DIEGO CA 92121

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