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NovoCure Beneish M-Score

: -3.73 (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 -3.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:NVCR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73   Med: -2.15   Max: -0.91
Current: -3.73

-3.73
-0.91

During the past 8 years, the highest Beneish M-Score of NovoCure was -0.91. The lowest was -3.73. And the median was -2.15.


NovoCure Beneish M-Score Historical Data

The historical data trend for NovoCure'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.

NovoCure Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only -1.74 -0.91 -3.06 -2.13 -2.31

NovoCure 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 -1.72 -2.31 -2.64 -2.94 -3.73

Competitive Comparison

For the Medical Instruments & Supplies subindustry, NovoCure'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.

   

NovoCure Beneish M-Score Distribution

For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's Beneish M-Score distribution charts can be found below:

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



NovoCure 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 NovoCure 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 * 0.9171+0.528 * 0.9725+0.404 * 0.3741+0.892 * 1.2138+0.115 * 1.0108
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9634+4.679 * -0.1328-0.327 * 2.4748
=-3.73

* 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 $94.1 Mil.
Revenue was 133.606 + 133.517 + 134.695 + 143.953 = $545.8 Mil.
Gross Profit was 103.4 + 104.918 + 108.31 + 115.817 = $432.4 Mil.
Total Current Assets was $1,069.0 Mil.
Total Assets was $1,120.5 Mil.
Property, Plant and Equipment(Net PPE) was $40.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General, & Admin. Expense(SGA) was $252.9 Mil.
Total Current Liabilities was $124.5 Mil.
Long-Term Debt & Capital Lease Obligation was $572.9 Mil.
Net Income was -13.124 + -14.641 + -4.128 + 4.917 = $-27.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 24.4 + 26.172 + 17.78 + 53.481 = $121.8 Mil.
Accounts Receivable was $84.6 Mil.
Revenue was 132.66 + 115.925 + 101.828 + 99.234 = $449.6 Mil.
Gross Profit was 104.265 + 90.451 + 77.332 + 74.448 = $346.5 Mil.
Total Current Assets was $383.5 Mil.
Total Assets was $431.0 Mil.
Property, Plant and Equipment(Net PPE) was $36.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.1 Mil.
Selling, General, & Admin. Expense(SGA) was $216.3 Mil.
Total Current Liabilities was $95.3 Mil.
Long-Term Debt & Capital Lease Obligation was $13.1 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)
=(94.129 / 545.771) / (84.561 / 449.647)
=0.17246977 / 0.18806086
=0.9171

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)
=(346.496 / 449.647) / (432.445 / 545.771)
=0.7705956 / 0.79235613
=0.9725

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 - (1069.006 + 40.712) / 1120.453) / (1 - (383.485 + 36.525) / 431.049)
=0.00958095 / 0.02560962
=0.3741

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
=545.771 / 449.647
=1.2138

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))
=(9.144 / (9.144 + 36.525)) / (10.057 / (10.057 + 40.712))
=0.20022335 / 0.19809332
=1.0108

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)
=(252.914 / 545.771) / (216.286 / 449.647)
=0.46340681 / 0.48101288
=0.9634

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)
=((572.866 + 124.549) / 1120.453) / ((13.08 + 95.334) / 431.049)
=0.62244021 / 0.25151201
=2.4748

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
=(-26.976 - 0 - 121.833) / 1120.453
=-0.1328

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.

NovoCure has a M-score of -3.73 suggests that the company is unlikely to be a manipulator.


NovoCure Beneish M-Score Related Terms

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NovoCure Business Description

NovoCure logo
Industry
Traded in Other Exchanges
Address
Grenville Street, No. 4 The Forum, Second Floor, Saint Helier, JEY, JE2 4UF
NovoCure Ltd serves in the healthcare sector of the United States. Its business involves commercial-stage oncology operations involving therapies to cure critical tumors. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. NovoCure derives its major revenues in the United States.
Executives
Weinberg Uri officer: Chief Science Officer NOVOCURE INC., 20 VALLEY STREAM PARKWAY SUITE 300 MALVERN PA 19355
Groenhuysen Wilhelmus Cm officer: Chief Operating Officer C/O NAVTEQ CORPORATION 222 MERCHANDISE MART STE 900 CHICAGO IL 60654
Danziger Asaf director, officer: Chief Executive Officer 5 NACHUM CHAT ST. TIRAT HACARMEL L3 5112302
Leung Gabriel director C/O PERNIX THERAPEUTICS HOLDINGS, INC. 10 NORTH PARK PLACE, SUITE 201 MORRISTOWN NJ 07960
Shah Pritesh officer: Chief Commercial Officer C/O NOVOCURE INC. 20 VALLEY STREAM PARKWAY, SUITE 300 MALVERN PA 19355
Leonard Frank X officer: Chief Development Officer 20 VALLEY STREAM PARKWAY, SUITE 300 MALVERN PA 19355
Cordova Ashley officer: Chief Financial Officer 20 VALLEY STREAM PARKWAY, SUITE 300 MALVERN PA 19355
Madden Martin J. director C/O MICROBOT MEDICAL INC. 175 DERBY STREET 27/1 HINGHAM MA 02043
Benaim Ely officer: Chief Medical Officer C/O REXAHN PHARMACEUTICALS, INC. 15245 SHADY GROVE ROAD, SUITE 455 ROCKVILLE MD 20850
Doyle William F director, officer: Executive Chairman PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DOYLE WILLIAM F a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Ambrogi Michael J. officer: Chief Operating Officer 195 COMMERCE WAY PORTSMOUTH NH 03801
Longsworth Todd Christopher officer: General Counsel NOVOCURE, 20 VALLEY STREAM PARKWAY SUITE 300 MALVERN PA 19355
Hilleman Jeryl L director C/O INTERSECT ENT, INC. 1555 ADAMS DRIVE MENLO PARK CA 94025
Mccoy Sherilyn S director JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Hung David director C/O AXOVANT SCIENCES, INC. 320 WEST 37TH STREET, 5TH FLOOR NEW YORK NY 10018

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