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Arrowhead Pharmaceuticals (Arrowhead Pharmaceuticals) Beneish M-Score : -4.90 (As of May. 07, 2024)


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What is Arrowhead Pharmaceuticals 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 -4.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ARWR' s Beneish M-Score Range Over the Past 10 Years
Min: -6.24   Med: -2.22   Max: 178.32
Current: -4.9

During the past 13 years, the highest Beneish M-Score of Arrowhead Pharmaceuticals was 178.32. The lowest was -6.24. And the median was -2.22.


Arrowhead Pharmaceuticals Beneish M-Score Historical Data

The historical data trend for Arrowhead Pharmaceuticals'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.

Arrowhead Pharmaceuticals Beneish M-Score Chart

Arrowhead Pharmaceuticals Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.66 -1.43 1.89 -3.12 -3.95

Arrowhead Pharmaceuticals 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 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 123.26 43.96 1.33 -3.95 -4.90

Competitive Comparison of Arrowhead Pharmaceuticals's Beneish M-Score

For the Biotechnology subindustry, Arrowhead Pharmaceuticals'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.


Arrowhead Pharmaceuticals's Beneish M-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Arrowhead Pharmaceuticals's Beneish M-Score distribution charts can be found below:

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



Arrowhead Pharmaceuticals 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 Arrowhead Pharmaceuticals 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+0.528 * 1+0.404 * 0.1124+0.892 * 0.6529+0.115 * 1.4732
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2058+4.679 * -0.162948-0.327 * 1.2638
=-4.90

* 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 $0.0 Mil.
Revenue was 3.551 + 16.097 + 15.825 + 146.267 = $181.7 Mil.
Gross Profit was 3.551 + 16.097 + 15.825 + 146.267 = $181.7 Mil.
Total Current Assets was $237.9 Mil.
Total Assets was $626.3 Mil.
Property, Plant and Equipment(Net PPE) was $378.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.1 Mil.
Selling, General, & Admin. Expense(SGA) was $93.5 Mil.
Total Current Liabilities was $63.7 Mil.
Long-Term Debt & Capital Lease Obligation was $115.2 Mil.
Net Income was -132.864 + -109.679 + -102.946 + 48.675 = $-296.8 Mil.
Non Operating Income was 0.421 + 0.717 + 0.306 + 0.008 = $1.5 Mil.
Cash Flow from Operations was -117.84 + -25.257 + -21.446 + -31.671 = $-196.2 Mil.
Total Receivables was $39.6 Mil.
Revenue was 62.546 + 31.575 + 32.412 + 151.805 = $278.3 Mil.
Gross Profit was 62.546 + 31.575 + 32.412 + 151.805 = $278.3 Mil.
Total Current Assets was $575.0 Mil.
Total Assets was $891.5 Mil.
Property, Plant and Equipment(Net PPE) was $189.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.5 Mil.
Selling, General, & Admin. Expense(SGA) was $118.8 Mil.
Total Current Liabilities was $122.0 Mil.
Long-Term Debt & Capital Lease Obligation was $79.5 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)
=(0 / 181.74) / (39.568 / 278.338)
=0 / 0.142158
=0

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)
=(278.338 / 278.338) / (181.74 / 181.74)
=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 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 - (237.899 + 378.318) / 626.286) / (1 - (574.999 + 188.969) / 891.489)
=0.016077 / 0.143043
=0.1124

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
=181.74 / 278.338
=0.6529

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))
=(10.537 / (10.537 + 188.969)) / (14.067 / (14.067 + 378.318))
=0.052815 / 0.03585
=1.4732

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)
=(93.543 / 181.74) / (118.807 / 278.338)
=0.514708 / 0.426844
=1.2058

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)
=((115.157 + 63.723) / 626.286) / ((79.47 + 122.009) / 891.489)
=0.28562 / 0.226003
=1.2638

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
=(-296.814 - 1.452 - -196.214) / 626.286
=-0.162948

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.

Arrowhead Pharmaceuticals has a M-score of -4.90 suggests that the company is unlikely to be a manipulator.


Arrowhead Pharmaceuticals Beneish M-Score Related Terms

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Arrowhead Pharmaceuticals (Arrowhead Pharmaceuticals) Business Description

Traded in Other Exchanges
Address
177 E. Colorado Boulevard, Suite 700, Pasadena, CA, USA, 91105
Arrowhead Pharmaceuticals Inc is an American biotechnology company. Its main target is the development of medicine to treat diseases with a genetic origin, characterized by the overproduction of one or more proteins. Its medical solutions are aimed at the genes that trigger the diseases. Its portfolio includes drugs targeting hepatitis B, Alpha-1 Antitrypsin Deficiency, thrombosis and angioedema, clear-cell and renal cell carcinoma, and cardiovascular disease.
Executives
James C Hamilton other: Senior Vice President 177 EAST COLORADO BLVD, SUITE 700, PASADENA CA 91105
Victoria Vakiener director C/O EPIZYME, INC., 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Mauro Ferrari director 201 SOUTH LAKE AVENUE, PASADENA CA 91101
William D. Waddill director C/O CALITHERA BIOSCIENCES, 343 OYSTER POINT BLVD, SUITE 200, SO. SAN FRANCISCO CA 94080
Douglas B Given director C/O NEORX CORP, 410 WEST HARRISON ST, SEATTLE WA 98119
Tracie Oliver officer: Chief Commercial Officer 177 E COLORADO BLVD, SUITE 700, PASADENA CA 91105
Patrick O'brien officer: General Counsel 225 S. LAKE AVENUE SUITE 1050, PASADENA CA 91101
Martin Javier San officer: Chief Medical Officer 177 E COLORADO BLVD, STE 700, PASADENA CA 91105
Kenneth Allen Myszkowski officer: CFO ARROWHEAD RESEARCH CORPORATION, 201 SOUTH LAKE AVENUE, SUITE 703, PASADENA CA 91101
Christopher Richard Anzalone director, officer: President and CEO ARROWHEAD RESEARCH CORPORATION, 201 SOUTH LAKE AVENUE, SUITE 703, PASADENA CA 91101
Adeoye Y Olukotun director 3621 SOUTH STATE ST, 695 KMS PL, ANN ARBOR MI 48108
Backer Marianne De director 177 E COLORADO BLVD, SUITE 700, PASADENA CA 91105
Michael S Perry director C/O BIOTRANSPLANT INC, 196 BOSTON AVE SUITE 2800, MEDFORD MA 02155
James Hassard officer: Chief Commercial Officer 177 E COLORADO BLVD, STE 700, PASADENA CA 91105
Curt Bradshaw officer: Chief Scientific Officer 177 E COLORADO BLVD, STE 700, PASADENA CA 91105