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Incyte Beneish M-Score

: -1.75 (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.

Warning Sign:

Beneish M-Score -1.75 higher than -1.78, which implies that the company might have manipulated its financial results.

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

INCY' s Beneish M-Score Range Over the Past 10 Years
Min: -4.44   Med: -2.21   Max: 57.41
Current: -1.75

During the past 13 years, the highest Beneish M-Score of Incyte was 57.41. The lowest was -4.44. And the median was -2.21.


Incyte Beneish M-Score Historical Data

The historical data trend for Incyte'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.

Incyte Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.94 -2.72 -2.92 -2.21 -1.95

Incyte Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.88 -2.41 -1.95 -1.87 -1.75

Competitive Comparison

For the Biotechnology subindustry, Incyte'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.

   

Incyte Beneish M-Score Distribution

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

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



Incyte 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 Incyte 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 * 1.2771+0.528 * 1.0028+0.404 * 1.1643+0.892 * 1.2205+0.115 * 0.9499
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1808+4.679 * 0.0534-0.327 * 1.0158
=-1.75

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $683 Mil.
Revenue was 911.397 + 733.235 + 862.853 + 812.987 = $3,320 Mil.
Gross Profit was 860.797 + 690.635 + 818.953 + 773.087 = $3,143 Mil.
Total Current Assets was $3,626 Mil.
Total Assets was $5,319 Mil.
Property, Plant and Equipment(Net PPE) was $749 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General, & Admin. Expense(SGA) was $880 Mil.
Total Current Liabilities was $927 Mil.
Long-Term Debt & Capital Lease Obligation was $31 Mil.
Net Income was 161.432 + 37.992 + 563.851 + 181.739 = $945 Mil.
Non Operating Income was -27.688 + -51.707 + 8.365 + -28.412 = $-99 Mil.
Cash Flow from Operations was 174.157 + 215.741 + 115.351 + 255.098 = $760 Mil.
Total Receivables was $438 Mil.
Revenue was 705.709 + 604.718 + 789.509 + 620.643 = $2,721 Mil.
Gross Profit was 667.709 + 575.518 + 753.209 + 586.343 = $2,583 Mil.
Total Current Assets was $2,620 Mil.
Total Assets was $3,905 Mil.
Property, Plant and Equipment(Net PPE) was $689 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General, & Admin. Expense(SGA) was $611 Mil.
Total Current Liabilities was $660 Mil.
Long-Term Debt & Capital Lease Obligation was $32 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)
=(682.968 / 3320.472) / (438.17 / 2720.579)
=0.20568401 / 0.16105763
=1.2771

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)
=(2582.779 / 2720.579) / (3143.472 / 3320.472)
=0.94934902 / 0.94669433
=1.0028

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 - (3625.845 + 748.677) / 5319.035) / (1 - (2620.06 + 689.043) / 3904.623)
=0.17757225 / 0.15251665
=1.1643

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
=3320.472 / 2720.579
=1.2205

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))
=(54.41 / (54.41 + 689.043)) / (62.494 / (62.494 + 748.677))
=0.07318553 / 0.07704171
=0.9499

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)
=(879.8 / 3320.472) / (610.5 / 2720.579)
=0.26496233 / 0.22440076
=1.1808

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)
=((31.157 + 926.674) / 5319.035) / ((31.838 + 660.324) / 3904.623)
=0.18007609 / 0.17726731
=1.0158

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
=(945.014 - -99.442 - 760.347) / 5319.035
=0.0534

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.

Incyte has a M-score of -1.75 signals that the company is likely to be a manipulator.


Incyte Business Description

Incyte logo
Address
1801 Augustine Cut-Off, Wilmington, DE, USA, 19803
Incyte focuses on the discovery and development of small-molecule drugs. The firm's lead drug, Jakafi, treats two types of rare blood cancer and graft versus host disease and is partnered with Novartis. Incyte's other marketed drugs include rheumatoid arthritis treatment Olumiant (licensed to Lilly), and oncology drugs Iclusig (chronic myeloid leukemia), Pemazyre (cholangiocarcinoma), Tabrecta (lung cancer), and Monjuvi (diffuse large B-cell lymphoma). The firm's first dermatology product, Opzelura, was approved in 2021 for atopic dermatitis. Incyte's pipeline includes a broad array of oncology and dermatology programs.
Executives
Tray Thomas officer: Principal Accounting Officer C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Brawley Otis W director 5203 BRISTOL INDUSTRIAL WAY BUFORD GA 30518
High Katherine A director 3737 MARKET STREET SUITE 1300 PHILADELPHIA PA 19104
Harrigan Edmund director
Morrissey Michael James officer: EVP, Head of Tech. Operations IN CARE OF INCYTE CORPORATION 1801 AUGUSTINE CUT OFF WILMINGTON DE 19803
Dickinson Jonathan Elliott officer: EVP, General Manager, Europe CARE OF INCYTE CORPORATION 1801 AUGUSTINE CUT OFF WILMINGTON DE 19803
Stamoulis Christiana officer: EVP & Chief Financial Officer C/O VERTEX PHARMACEUTICALS INCORPORATED 130 WAVERLY ST CAMBRIDGE MA 02139
Dhanak Dashyant officer: EVP & Chief Scientific Officer C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Pasquale Maria E officer: EVP & General Counsel C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Fouse Jacqualyn A director C/O DICK'S SPORTING GOODS 345 COURT STREET CORAOPOLIS PA 15108
Iyengar Vijay K officer: EVP GPS, BD, & Licensing 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Stein Steven H officer: EVP & Chief Medical Officer 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Trower Paul officer: VP, Finance & Prin Acc Officer 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Clancy Paul J director C/O BIOGEN IDEC INC. 14 CAMBRIDGE CENTER CAMBRIDGE MA 02142
Bienaime Jean Jacques director 925 PAGE MILL ROAD PALO ALTO CA 94304

Incyte Headlines

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