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Morphic Holding Beneish M-Score

: 0.00 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Morphic Holding has a M-score of -0.83 signals that the company is a manipulator.

During the past 3 years, the highest Beneish M-Score of Morphic Holding was 1.28. The lowest was 0.00. And the median was 1.28.


Morphic Holding Beneish M-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Morphic Holding Annual Data
Dec17 Dec18 Dec19
Beneish M-Score 0.00 0.00 1.28

Morphic Holding Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 1.28 0.00 0.00

Competitive Comparison
* 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.


Morphic Holding Beneish M-Score Distribution

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



Morphic Holding 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 Morphic Holding 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 * 3.0074+0.528 * 1+0.404 * 0.0935+0.892 * 1.2424+0.115 * 0.8005
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6344+4.679 * 0.0088-0.327 * 0.8765
=-0.83

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun20) TTM:Last Year (Jun19) TTM:
Accounts Receivable was $3.53 Mil.
Revenue was 7.693 + 5.594 + -0.334 + 5.675 = $18.63 Mil.
Gross Profit was 7.693 + 5.594 + -0.334 + 5.675 = $18.63 Mil.
Total Current Assets was $208.61 Mil.
Total Assets was $212.00 Mil.
Property, Plant and Equipment(Net PPE) was $3.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.03 Mil.
Selling, General, & Admin. Expense(SGA) was $14.94 Mil.
Total Current Liabilities was $45.28 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was -15.858 + -16.746 + -19.831 + -8.864 = $-61.30 Mil.
Non Operating Income was 0 + 0 + 0 + -0.094 = $-0.09 Mil.
Cash Flow from Operations was -16.36 + -18.943 + -14.075 + -13.696 = $-63.07 Mil.
Accounts Receivable was $0.95 Mil.
Revenue was 5.567 + 6.068 + 3.358 + 0 = $14.99 Mil.
Gross Profit was 5.567 + 6.068 + 3.358 + 0 = $14.99 Mil.
Total Current Assets was $172.79 Mil.
Total Assets was $178.61 Mil.
Property, Plant and Equipment(Net PPE) was $2.53 Mil.
(DDA) was $0.64 Mil.
Selling, General, & Admin. Expense(SGA) was $7.36 Mil.
Total Current Liabilities was $43.53 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
=(3.531 / 18.628) / (0.945 / 14.993)
=0.18955336 / 0.06302941
=3.0074

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)
=(14.993 / 14.993) / (18.628 / 18.628)
=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 - (208.61 + 3.024) / 211.999) / (1 - (172.786 + 2.534) / 178.61)
=0.00172171 / 0.01842002
=0.0935

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
=18.628 / 14.993
=1.2424

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))
=(0.644 / (0.644 + 2.534)) / (1.025 / (1.025 + 3.024))
=0.20264317 / 0.25314893
=0.8005

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)
=(14.942 / 18.628) / (7.358 / 14.993)
=0.80212583 / 0.49076236
=1.6344

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)
=((0 + 45.284) / 211.999) / ((0 + 43.53) / 178.61)
=0.21360478 / 0.24371536
=0.8765

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
=(-61.299 - -0.094 - -63.074) / 211.999
=0.0088

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Morphic Holding has a M-score of -0.83 signals that the company is likely to be a manipulator.


Morphic Holding Beneish M-Score Headlines

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