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EXAS (Exact Sciences) Beneish M-Score : -2.31 (As of Oct. 31, 2024)


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What is Exact Sciences Beneish M-Score?

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 -2.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

EXAS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.15   Med: -2.31   Max: 13.42
Current: -2.31

During the past 13 years, the highest Beneish M-Score of Exact Sciences was 13.42. The lowest was -4.15. And the median was -2.31.


Exact Sciences Beneish M-Score Historical Data

The historical data trend for Exact Sciences'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.

Exact Sciences Beneish M-Score Chart

Exact Sciences Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.83 -2.87 -2.60 -2.90 -2.52

Exact Sciences Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial 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 -2.85 -2.71 -2.52 -2.49 -2.31

Competitive Comparison of Exact Sciences's Beneish M-Score

For the Diagnostics & Research subindustry, Exact Sciences'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.


Exact Sciences's Beneish M-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Exact Sciences's Beneish M-Score distribution charts can be found below:

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



Exact Sciences 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 Exact Sciences 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 * 1.3033+0.528 * 1.0046+0.404 * 0.9593+0.892 * 1.1354+0.115 * 0.9495
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8927+4.679 * -0.048924-0.327 * 1.0121
=-2.31

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $264 Mil.
Revenue was 699.264 + 637.524 + 646.885 + 628.338 = $2,612 Mil.
Gross Profit was 509.464 + 467.424 + 475.068 + 459.812 = $1,912 Mil.
Total Current Assets was $1,452 Mil.
Total Assets was $6,673 Mil.
Property, Plant and Equipment(Net PPE) was $843 Mil.
Depreciation, Depletion and Amortization(DDA) was $213 Mil.
Selling, General, & Admin. Expense(SGA) was $1,624 Mil.
Total Current Liabilities was $669 Mil.
Long-Term Debt & Capital Lease Obligation was $2,486 Mil.
Net Income was -15.808 + -110.228 + -49.766 + 0.794 = $-175 Mil.
Non Operating Income was 3.649 + 1.767 + 25.33 + 2.065 = $33 Mil.
Cash Flow from Operations was 107.065 + -82.311 + 69.549 + 24.361 = $119 Mil.
Total Receivables was $178 Mil.
Revenue was 622.093 + 602.45 + 552.995 + 523.073 = $2,301 Mil.
Gross Profit was 465.093 + 445.55 + 405.837 + 375.136 = $1,692 Mil.
Total Current Assets was $1,174 Mil.
Total Assets was $6,356 Mil.
Property, Plant and Equipment(Net PPE) was $835 Mil.
Depreciation, Depletion and Amortization(DDA) was $198 Mil.
Selling, General, & Admin. Expense(SGA) was $1,603 Mil.
Total Current Liabilities was $488 Mil.
Long-Term Debt & Capital Lease Obligation was $2,480 Mil.




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)
=(263.865 / 2612.011) / (178.317 / 2300.611)
=0.10102 / 0.077509
=1.3033

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)
=(1691.616 / 2300.611) / (1911.768 / 2612.011)
=0.73529 / 0.731914
=1.0046

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 - (1452.487 + 842.89) / 6673.295) / (1 - (1173.928 + 835.292) / 6355.563)
=0.656035 / 0.683864
=0.9593

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
=2612.011 / 2300.611
=1.1354

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))
=(198.232 / (198.232 + 835.292)) / (213.367 / (213.367 + 842.89))
=0.191802 / 0.202003
=0.9495

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)
=(1624.286 / 2612.011) / (1602.555 / 2300.611)
=0.621853 / 0.696578
=0.8927

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)
=((2485.613 + 668.642) / 6673.295) / ((2480.068 + 488.057) / 6355.563)
=0.472668 / 0.467012
=1.0121

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
=(-175.008 - 32.811 - 118.664) / 6673.295
=-0.048924

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.

Exact Sciences has a M-score of -2.31 suggests that the company is unlikely to be a manipulator.


Exact Sciences Beneish M-Score Related Terms

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Exact Sciences Business Description

Traded in Other Exchanges
Address
5505 Endeavor Lane, Madison, WI, USA, 53719
Exact Sciences Corporation, headquartered in Madison, Wisconsin, provides cancer screening and diagnostic test products in the United States and internationally. Exact's Cologuard screening test, a noninvasive stool-based DNA test, is a pre-cancer screening test for colorectal cancer. The company also competes in the precision oncology market with Oncotype DX, a suite of tissue-based genomic tests for estimating recurrence risk and likelihood of benefit from chemotherapy for breast and colon cancer, and OncoExTra, a liquid-based comprehensive genomic profiling test. It is also developing liquid biopsy tests for molecular residual disease, or MRD, colorectal cancer screening, and multicancer screening.
Executives
Brian Baranick officer: Gen. Mgr., Precision Oncology 441 CHARMANY DRIVE, MADISON WI 53719
Jacob A Orville officer: General Manager, New Ventures 5505 ENDEAVOR LANE, MADISON WI 53719
James Herriott officer: General Counsel 5505 ENDEAVOR LANE, MADISON WI 53719
Sarah Condella officer: SVP, Human Resources 441 CHARMANY DRIVE, MADISON WI 53719
D Scott Coward officer: SVP and General Counsel 441 CHARMANY DRIVE, MADISON WI 53719
Jeffrey Thomas Elliott officer: Chief Financial Officer 5505 ENDEAVOR LANE, MADISON WI 53719
Kevin T Conroy director, officer: Vice President 5505 ENDEAVOR LANE, MADISON WI 53719
Everett Cunningham officer: Chief Commercial Officer C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Daniel J Levangie director 85 SWANSON ROAD, BOXBOROUGH MA 01719
James Edward Doyle director 5505 ENDEAVOR LANE, MADISON WI 53719
Timothy J Scannell director 2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002
Katherine S Zanotti director 431 E 9TH STREET, HINSDALE IL 60521
Paul J Clancy director C/O BIOGEN IDEC INC., 14 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Graham Peter Lidgard officer: SVP, Chief Scientific Officer 5505 ENDEAVOR LANE, MADISON WI 53719
Michael S Wyzga director RADIUS HEALTH, INC., 201 BROADWAY, 6TH FLOOR, CAMBRIDGE MA 02139