Vertex Pharmaceuticals Beneish M-Score Historical Data
The historical data trend for Vertex Pharmaceuticals'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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Vertex Pharmaceuticals Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.22 |
-2.50 |
-1.96 |
-2.34 |
-2.04 |
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Vertex Pharmaceuticals 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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-2.34 |
-2.21 |
-2.18 |
-2.28 |
-2.04 |
Competitive Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals'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.
Vertex Pharmaceuticals Beneish M-Score Distribution
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Beneish M-Score falls into.
Vertex Pharmaceuticals 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 Vertex Pharmaceuticals 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 * 0.981 | + | 0.528 * 1.0079 | + | 0.404 * 1.6461 | + | 0.892 * 1.1051 | + | 0.115 * 0.8333 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0887 | + | 4.679 * 0.025543 | - | 0.327 * 0.9603 |
| = | -2.04 |
* 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 $1,563 Mil.
Revenue was 2517.7 + 2483.5 + 2493.2 + 2374.8 = $9,869 Mil.
Gross Profit was 2149.7 + 2164.8 + 2184.6 + 2107.9 = $8,607 Mil.
Total Current Assets was $14,144 Mil.
Total Assets was $22,730 Mil.
Property, Plant and Equipment(Net PPE) was $1,453 Mil.
Depreciation, Depletion and Amortization(DDA) was $181 Mil.
Selling, General, & Admin. Expense(SGA) was $1,137 Mil.
Total Current Liabilities was $3,547 Mil.
Long-Term Debt & Capital Lease Obligation was $725 Mil.
Net Income was 968.8 + 1035.3 + 915.7 + 699.8 = $3,620 Mil.
Non Operating Income was 22.7 + -68.8 + -108.3 + -343.9 = $-498 Mil.
Cash Flow from Operations was 234.6 + 1268.4 + 1134.4 + 899.9 = $3,537 Mil.
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Total Receivables was $1,442 Mil.
Revenue was 2302.7 + 2334.3 + 2196.2 + 2097.5 = $8,931 Mil.
Gross Profit was 2019.4 + 2044.9 + 1934.4 + 1851.7 = $7,850 Mil.
Total Current Assets was $13,235 Mil.
Total Assets was $18,151 Mil.
Property, Plant and Equipment(Net PPE) was $1,456 Mil.
Depreciation, Depletion and Amortization(DDA) was $148 Mil.
Selling, General, & Admin. Expense(SGA) was $945 Mil.
Total Current Liabilities was $2,742 Mil.
Long-Term Debt & Capital Lease Obligation was $810 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) |
| = | (1563.4 / 9869.2) | / | (1442.2 / 8930.7) |
| = | 0.158412 | / | 0.161488 |
| | = | 0.981 |
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) |
| = | (7850.4 / 8930.7) | / | (8607 / 9869.2) |
| = | 0.879035 | / | 0.872107 |
| | = | 1.0079 |
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 - (14144.2 + 1452.9) / 22730.2) | / | (1 - (13234.8 + 1455.8) / 18150.9) |
| = | 0.313816 | / | 0.190641 |
| | = | 1.6461 |
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 |
| = | 9869.2 | / | 8930.7 |
| | = | 1.1051 |
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)) |
| = | (148.3 / (148.3 + 1455.8)) | / | (181.3 / (181.3 + 1452.9)) |
| = | 0.092451 | / | 0.110941 |
| | = | 0.8333 |
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) |
| = | (1136.6 / 9869.2) | / | (944.7 / 8930.7) |
| = | 0.115166 | / | 0.105781 |
| | = | 1.0887 |
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) |
| = | ((724.7 + 3547.4) / 22730.2) | / | ((810.3 + 2742.1) / 18150.9) |
| = | 0.187948 | / | 0.195715 |
| | = | 0.9603 |
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 |
| = | (3619.6 - -498.3 | - | 3537.3) | / | 22730.2 |
| | = | 0.025543 |
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.
Vertex Pharmaceuticals has a M-score of -2.04 suggests that the company is unlikely to be a manipulator.
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