Royalty Pharma Beneish M-Score Historical Data
The historical data trend for Royalty Pharma'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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Royalty Pharma Annual Data
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Trend |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
-2.86 |
-2.21 |
-3.39 |
-3.03 |
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Royalty Pharma Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-3.39 |
-3.43 |
-3.07 |
-3.03 |
-3.03 |
Competitive Comparison
For the Biotechnology subindustry, Royalty Pharma'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.
Royalty Pharma Beneish M-Score Distribution
For the Biotechnology industry and Healthcare sector, Royalty Pharma's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Royalty Pharma's Beneish M-Score falls into.
Royalty Pharma 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 Royalty Pharma 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 * 0.9515 | + | 0.528 * 1 | + | 0.404 * 1.0875 | + | 0.892 * 1.0524 | + | 0.115 * 1 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.044 | + | 4.679 * -0.132818 | - | 0.327 * 0.887 |
| = | -3.03 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $37 Mil.
Revenue was 596.068 + 536.313 + 538.202 + 683.971 = $2,355 Mil.
Gross Profit was 596.068 + 536.313 + 538.202 + 683.971 = $2,355 Mil.
Total Current Assets was $1,274 Mil.
Total Assets was $16,382 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $250 Mil.
Total Current Liabilities was $161 Mil.
Long-Term Debt & Capital Lease Obligation was $6,135 Mil.
Net Income was 494.34 + 72.114 + 227.625 + 340.755 = $1,135 Mil.
Non Operating Income was 145.445 + -6.768 + 123.792 + 60.365 = $323 Mil.
Cash Flow from Operations was 772.628 + 573.52 + 607.817 + 1033.837 = $2,988 Mil.
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Total Receivables was $37 Mil.
Revenue was 565.748 + 573.463 + 535.955 + 562.049 = $2,237 Mil.
Gross Profit was 565.748 + 573.463 + 535.955 + 562.049 = $2,237 Mil.
Total Current Assets was $2,555 Mil.
Total Assets was $16,813 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $6 Mil.
Selling, General, & Admin. Expense(SGA) was $227 Mil.
Total Current Liabilities was $1,167 Mil.
Long-Term Debt & Capital Lease Obligation was $6,119 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) |
| = | (36.647 / 2354.554) | / | (36.597 / 2237.215) |
| = | 0.015564 | / | 0.016358 |
| | = | 0.9515 |
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) |
| = | (2237.215 / 2237.215) | / | (2354.554 / 2354.554) |
| = | 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 - (1274.193 + 0) / 16381.851) | / | (1 - (2554.908 + 0) / 16813.466) |
| = | 0.922219 | / | 0.848044 |
| | = | 1.0875 |
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 |
| = | 2354.554 | / | 2237.215 |
| | = | 1.0524 |
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)) |
| = | (5.67 / (5.67 + 0)) | / | (0 / (0 + 0)) |
| = | 1 | / | |
| | = | 1 |
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) |
| = | (249.748 / 2354.554) | / | (227.303 / 2237.215) |
| = | 0.10607 | / | 0.101601 |
| | = | 1.044 |
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) |
| = | ((6135.285 + 161.377) / 16381.851) | / | ((6118.81 + 1166.783) / 16813.466) |
| = | 0.384368 | / | 0.433319 |
| | = | 0.887 |
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 |
| = | (1134.834 - 322.834 | - | 2987.802) | / | 16381.851 |
| | = | -0.132818 |
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.
Royalty Pharma has a M-score of -3.03 suggests that the company is unlikely to be a manipulator.
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