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.
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NovoCure Annual Data
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Trend |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
| Beneish M-Score |
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-2.98 |
-1.99 |
-2.51 |
-3.17 |
-3.01 |
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NovoCure Quarterly Data
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Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
| Beneish M-Score |
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-2.90 |
-3.05 |
-3.01 |
-3.32 |
-3.19 |
Competitive Comparison
For the Medical Devices 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 in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.
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 * 0.8456 | + | 0.528 * 1.0367 | + | 0.404 * 1.3414 | + | 0.892 * 0.9311 | + | 0.115 * 1.3054 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.3646 | + | 4.679 * -0.132532 | - | 0.327 * 1.0383 |
| = | -3.19 |
* 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 (Jun23) TTM: | Last Year (Jun22) TTM: |
Total Receivables was $91.1 Mil.
Revenue was 126.051 + 122.182 + 128.429 + 130.998 = $507.7 Mil.
Gross Profit was 92.033 + 92.568 + 99.541 + 101.249 = $385.4 Mil.
Total Current Assets was $1,065.5 Mil.
Total Assets was $1,159.0 Mil.
Property, Plant and Equipment(Net PPE) was $79.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.8 Mil.
Selling, General, & Admin. Expense(SGA) was $354.0 Mil.
Total Current Liabilities was $150.1 Mil.
Long-Term Debt & Capital Lease Obligation was $587.5 Mil.
Net Income was -57.418 + -53.061 + -37.303 + -26.576 = $-174.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -22.737 + -16.727 + -3.707 + 22.42 = $-20.8 Mil.
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Total Receivables was $115.8 Mil.
Revenue was 140.866 + 137.547 + 133.213 + 133.606 = $545.2 Mil.
Gross Profit was 112.363 + 109.82 + 103.526 + 103.4 = $429.1 Mil.
Total Current Assets was $1,094.6 Mil.
Total Assets was $1,162.7 Mil.
Property, Plant and Equipment(Net PPE) was $57.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.7 Mil.
Selling, General, & Admin. Expense(SGA) was $278.6 Mil.
Total Current Liabilities was $135.4 Mil.
Long-Term Debt & Capital Lease Obligation was $577.2 Mil.
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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) |
| = | (91.136 / 507.66) | / | (115.758 / 545.232) |
| = | 0.179522 | / | 0.21231 |
| | = | 0.8456 |
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) |
| = | (429.109 / 545.232) | / | (385.391 / 507.66) |
| = | 0.787021 | / | 0.759152 |
| | = | 1.0367 |
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 - (1065.49 + 78.953) / 1159.015) | / | (1 - (1094.555 + 57.219) / 1162.672) |
| = | 0.012573 | / | 0.009373 |
| | = | 1.3414 |
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 |
| = | 507.66 | / | 545.232 |
| | = | 0.9311 |
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)) |
| = | (10.665 / (10.665 + 57.219)) | / | (10.802 / (10.802 + 78.953)) |
| = | 0.157106 | / | 0.12035 |
| | = | 1.3054 |
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) |
| = | (353.982 / 507.66) | / | (278.612 / 545.232) |
| = | 0.697282 | / | 0.510997 |
| | = | 1.3646 |
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) |
| = | ((587.479 + 150.087) / 1159.015) | / | ((577.223 + 135.399) / 1162.672) |
| = | 0.636373 | / | 0.612917 |
| | = | 1.0383 |
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 |
| = | (-174.358 - 0 | - | -20.751) | / | 1159.015 |
| | = | -0.132532 |
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 -3.19 suggests that the company is unlikely to be a manipulator.
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