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Biogen (MEX:BIIB) Beneish M-Score : -2.34 (As of Jul. 22, 2024)


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What is Biogen Beneish M-Score?

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 -2.34 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:

MEX:BIIB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05   Med: -2.62   Max: -2.12
Current: -2.34

During the past 13 years, the highest Beneish M-Score of Biogen was -2.12. The lowest was -3.05. And the median was -2.62.


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 Beneish M-Score Chart

Biogen Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.67 -2.84 -2.91 -2.22 -2.31

Biogen Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial 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 -2.37 -2.24 -2.18 -2.31 -2.34

Competitive Comparison of Biogen's Beneish M-Score

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.


Biogen's Beneish M-Score Distribution in the Drug Manufacturers Industry

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 into.



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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0833+0.528 * 1.0464+0.404 * 1.3393+0.892 * 0.838+0.115 * 0.9746
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1159+4.679 * 0.001448-0.327 * 0.9542
=-2.39

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was MXN33,188 Mil.
Revenue was 38013.722 + 40505.648 + 44075.035 + 42105.418 = MXN164,700 Mil.
Gross Profit was 29015.233 + 30010.47 + 32585.531 + 31944.229 = MXN123,555 Mil.
Total Current Assets was MXN112,128 Mil.
Total Assets was MXN440,923 Mil.
Property, Plant and Equipment(Net PPE) was MXN61,463 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN9,016 Mil.
Selling, General, & Admin. Expense(SGA) was MXN43,104 Mil.
Total Current Liabilities was MXN53,486 Mil.
Long-Term Debt & Capital Lease Obligation was MXN111,138 Mil.
Net Income was 6528.967 + 4238.47 + -1186.227 + 10142.331 = MXN19,724 Mil.
Non Operating Income was -886.24 + -2009.751 + -7108.652 + 1028.634 = MXN-8,976 Mil.
Cash Flow from Operations was 9181.048 + 212.178 + 10318.955 + 8349.079 = MXN28,061 Mil.
Total Receivables was MXN36,558 Mil.
Revenue was 44395.575 + 49597.824 + 50458.477 + 52087.514 = MXN196,539 Mil.
Gross Profit was 32448.605 + 38467.558 + 41014.485 + 42350.402 = MXN154,281 Mil.
Total Current Assets was MXN175,969 Mil.
Total Assets was MXN443,386 Mil.
Property, Plant and Equipment(Net PPE) was MXN66,693 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN9,500 Mil.
Selling, General, & Admin. Expense(SGA) was MXN46,093 Mil.
Total Current Liabilities was MXN54,344 Mil.
Long-Term Debt & Capital Lease Obligation was MXN119,140 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)
=(33187.531 / 164699.823) / (36558.305 / 196539.39)
=0.201503 / 0.18601
=1.0833

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)
=(154281.05 / 196539.39) / (123555.463 / 164699.823)
=0.784988 / 0.750186
=1.0464

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 - (112127.618 + 61462.571) / 440922.665) / (1 - (175969.062 + 66692.5) / 443386.16)
=0.606302 / 0.452708
=1.3393

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
=164699.823 / 196539.39
=0.838

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))
=(9499.614 / (9499.614 + 66692.5)) / (9016.096 / (9016.096 + 61462.571))
=0.12468 / 0.127927
=0.9746

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)
=(43103.984 / 164699.823) / (46092.54 / 196539.39)
=0.261712 / 0.234521
=1.1159

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)
=((111138.481 + 53486.411) / 440922.665) / ((119139.842 + 54343.572) / 443386.16)
=0.373365 / 0.391269
=0.9542

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
=(19723.541 - -8976.009 - 28061.26) / 440922.665
=0.001448

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 -2.39 suggests that the company is unlikely to be a manipulator.


Biogen (MEX:BIIB) Business Description

Address
225 Binney Street, Cambridge, MA, USA, 02142
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 multiple sclerosis drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is copromoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with Sobi) were spun off as part of Bioverativ in 2017. Biogen's newer products include Spinraza (SMA, with partner Ionis), Leqembi (Alzheimers, with partner Eisai), Skyclarys (Friedreich's Ataxia, Reata), Zurzuvae (post-partum depression, Sage), and Qalsody (ALS, Ionis). Biogen has several drug candidates in phase 3 trials in neurology-related fields.

Biogen (MEX:BIIB) Headlines

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