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Icon Beneish M-Score

: -2.41 (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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:ICLR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.35   Med: -2.37   Max: 10000000
Current: -2.41

-3.35
10000000

During the past 13 years, the highest Beneish M-Score of Icon was 10000000.00. The lowest was -3.35. And the median was -2.37.


Icon Beneish M-Score Historical Data

The historical data trend for Icon'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.

Icon 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 -2.40 -2.69 -1.94 -2.25 -2.52

Icon Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -2.53 -2.52 -2.54 -2.41

Competitive Comparison

For the Diagnostics & Research subindustry, Icon'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.

   

Icon Beneish M-Score Distribution

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

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



Icon 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 Icon 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 * 1.2433+0.528 * 1.0331+0.404 * 0.8223+0.892 * 1.1516+0.115 * 0.8958
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9624+4.679 * -0.0513-0.327 * 0.971
=-2.41

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $677 Mil.
Revenue was 871.155 + 858.198 + 760.229 + 701.729 = $3,191 Mil.
Gross Profit was 240.032 + 231.954 + 224.882 + 208.319 = $905 Mil.
Total Current Assets was $2,285 Mil.
Total Assets was $3,584 Mil.
Property, Plant and Equipment(Net PPE) was $235 Mil.
Depreciation, Depletion and Amortization(DDA) was $69 Mil.
Selling, General, & Admin. Expense(SGA) was $379 Mil.
Total Current Liabilities was $1,105 Mil.
Long-Term Debt & Capital Lease Obligation was $397 Mil.
Net Income was 73.865 + 97.122 + 101.234 + 91.641 = $364 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 128.434 + 111.92 + 195.422 + 111.965 = $548 Mil.
Accounts Receivable was $473 Mil.
Revenue was 620.228 + 715.102 + 725.409 + 710.441 = $2,771 Mil.
Gross Profit was 174.395 + 209.809 + 217.218 + 210.65 = $812 Mil.
Total Current Assets was $1,578 Mil.
Total Assets was $2,859 Mil.
Property, Plant and Equipment(Net PPE) was $249 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General, & Admin. Expense(SGA) was $342 Mil.
Total Current Liabilities was $1,170 Mil.
Long-Term Debt & Capital Lease Obligation was $64 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)
=(677.247 / 3191.311) / (473.02 / 2771.18)
=0.21221592 / 0.17069263
=1.2433

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)
=(812.072 / 2771.18) / (905.187 / 3191.311)
=0.29304195 / 0.28364111
=1.0331

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 - (2285.388 + 235.482) / 3584.464) / (1 - (1578.398 + 248.819) / 2858.72)
=0.2967233 / 0.36082687
=0.8223

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
=3191.311 / 2771.18
=1.1516

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))
=(63.045 / (63.045 + 248.819)) / (68.627 / (68.627 + 235.482))
=0.20215543 / 0.2256658
=0.8958

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)
=(379.414 / 3191.311) / (342.328 / 2771.18)
=0.1188897 / 0.12353149
=0.9624

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)
=((397.334 + 1105.041) / 3584.464) / ((63.974 + 1169.993) / 2858.72)
=0.41913519 / 0.43165018
=0.971

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
=(363.862 - 0 - 547.741) / 3584.464
=-0.0513

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.

Icon has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.


Icon Business Description

Icon logo
Industry
Traded in Other Exchanges
Address
South County Business Park, Leopardstown, Dublin, IRL, 18
Icon is a global late-stage contract research organization that provides drug development and clinical trial services to pharmaceutical, biotechnology, and medical device firms. While the vast majority of its revenue comes from clinical research, Icon also offers ancillary services such as laboratory and imaging capabilities. The company is headquartered in Ireland.

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