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Biogen Beneish M-Score

: -2.91 (As of Today)
View and export this data going back to 1991. Start your Free Trial

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 -2.91 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:

NAS:BIIB' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Med: -2.59   Max: 74.62
Current: -2.91

-4
74.62

During the past 13 years, the highest Beneish M-Score of Biogen was 74.62. The lowest was -4.00. And the median was -2.59.


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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.41 -2.50 -2.62 -2.67 -2.84

Biogen Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -2.84 -2.92 -2.93 -2.91

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.

   

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 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 * 1.0689+0.528 * 1.0621+0.404 * 1.0117+0.892 * 0.7783+0.115 * 0.5579
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.464+4.679 * -0.0452-0.327 * 0.9748
=-2.91

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $2,123 Mil.
Revenue was 2778.9 + 2775 + 2694 + 2852.6 = $11,101 Mil.
Gross Profit was 2267.1 + 2315.3 + 2215.9 + 2362 = $9,160 Mil.
Total Current Assets was $7,162 Mil.
Total Assets was $23,807 Mil.
Property, Plant and Equipment(Net PPE) was $3,800 Mil.
Depreciation, Depletion and Amortization(DDA) was $463 Mil.
Selling, General, & Admin. Expense(SGA) was $2,693 Mil.
Total Current Liabilities was $4,212 Mil.
Long-Term Debt & Capital Lease Obligation was $6,621 Mil.
Net Income was 329.2 + 448.5 + 410.2 + 357.9 = $1,546 Mil.
Non Operating Income was -423.6 + 131.8 + -411.3 + 890.8 = $188 Mil.
Cash Flow from Operations was 805.3 + 1227.3 + 769 + -367.1 = $2,435 Mil.
Accounts Receivable was $2,552 Mil.
Revenue was 3376.1 + 3681.6 + 3534.3 + 3671.3 = $14,263 Mil.
Gross Profit was 2927 + 3270.5 + 3080 + 3224.2 = $12,502 Mil.
Total Current Assets was $7,843 Mil.
Total Assets was $24,934 Mil.
Property, Plant and Equipment(Net PPE) was $3,794 Mil.
Depreciation, Depletion and Amortization(DDA) was $245 Mil.
Selling, General, & Admin. Expense(SGA) was $2,363 Mil.
Total Current Liabilities was $3,804 Mil.
Long-Term Debt & Capital Lease Obligation was $7,834 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(2123 / 11100.5) / (2552.1 / 14263.3)
=0.19125265 / 0.17892774
=1.0689

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)
=(12501.7 / 14263.3) / (9160.3 / 11100.5)
=0.87649422 / 0.82521508
=1.0621

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 - (7162.3 + 3799.8) / 23806.7) / (1 - (7843.1 + 3794.1) / 24934.1)
=0.53953719 / 0.53328173
=1.0117

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
=11100.5 / 14263.3
=0.7783

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))
=(244.6 / (244.6 + 3794.1)) / (462.7 / (462.7 + 3799.8))
=0.06056404 / 0.10855132
=0.5579

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)
=(2692.6 / 11100.5) / (2363.2 / 14263.3)
=0.24256565 / 0.16568396
=1.464

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)
=((6620.5 + 4211.6) / 23806.7) / ((7834.1 + 3804) / 24934.1)
=0.45500216 / 0.46675436
=0.9748

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
=(1545.8 - 187.7 - 2434.5) / 23806.7
=-0.0452

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 -2.91 suggests that the company is unlikely to be a manipulator.


Biogen Business Description

Biogen logo
Industry
Healthcare » Drug Manufacturers NAICS : 325412 SIC : 2834
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 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.
Executives
Mcdonnell Michael R officer: EVP, Chief Financial Officer C/O IQVIA HOLDINGS INC. 83 WOOSTER HEIGHTS ROAD DANBURY CT 06810
Gregory Ginger officer: EVP, Human Resources C/O BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Kramer Robin officer: VP, Chief Accounting Officer 999 VANDERBILT BEACH ROAD 3RD FLOOR NAPLES FL 34109
Sherwin Stephen A director C/O CELL GENESYS, INC. 500 FORBES BLVD. SOUTH SAN FRANCISCO CA 94080
Hawkins William A director MEDTRONIC INC 710 MEDTRONIC PKWY, MS LC310 MINNEAPOLIS MN 55432-5604
Dorsa Caroline director BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Papadopoulos Stelios director 3 SOMERSET DRIVE SOUTH GREAT NECK NY 11020
Pangia Robert W director 3965 FREEDOM CIRCLE SANTA CLARA CA 95054
Leaming Nancy director C/O HOLOGIC INC BEDFORD MA 01730
Rowinsky Eric K director IMCLONE SYSTEMS INCORPORATED 180 VARICK STREET, 6TH FLOOR NEW YORK NY 10014
Denner Alexander J director C/O SARISSA CAPITAL MANAGEMENT LP 660 STEAMBOAT ROAD, 3RD FLOOR GREENWICH CT 06830
Posner Brian S director 14 CAMBRIDGE CENTER CAMBRIDGE MA 02142
Mulligan Richard director C/O ICAHN CAPITAL LP 767 FIFTH AVENUE, SUITE 4700 NEW YORK NY 10153
Mantas Jesus B director BIOGEN INC. 225 BINNEY STREET CAMBRIDGE MA 02142
Galdes Alphonse officer: EVP Pharmaceutical Oper & Tech BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142

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