Incyte Beneish M Score

This module uses fundamental data of Incyte Corp to approximate the value of its Beneish M Score. Incyte Corp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please see Risk vs Return Analysis.

Incyte Beneish M Score 

 
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Incyte Corp Total Debt is fairly stable at the moment as compared to the past year. Incyte Corp reported Total Debt of 34.86 Million in 2020. Debt Current is likely to rise to about 2.3 M in 2021, whereas Issuance Repayment of Debt Securities is likely to drop (858 K) in 2021. Incyte Corp Debt to Equity Ratio is fairly stable at the moment as compared to the past year. Incyte Corp reported Debt to Equity Ratio of 0.36 in 2020. Price to Book Value is likely to rise to 7.87 in 2021, whereas Calculated Tax Rate is likely to drop 9.27 in 2021.
At this time, it appears that Incyte Corp is a possible manipulator. The earnings manipulation may begin if Incyte Corp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Incyte Corp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Incyte Corp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-0.1
Beneish M Score - Possible Manipulator
Elasticity of Receivables
1.0
Asset Quality
6.94
Expense Coverage
0.75
Gross Margin Strengs
0.96
Accruals Factor
0.75
Depreciation Resistance
1.07
Net Sales Growth
1.08
Financial Leverage Condition
0.93

Incyte Corp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Incyte Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues2.9 B2.7 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense416.2 M516.9 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations(127.9 M)(124.6 M)
Fairly Down
Increasing
Stable
Depreciation Amortization and Accretion51.9 M51.8 M
Slightly Up
Increasing
Slightly volatile
Total Assets3.8 B3.6 B
Significantly Up
Increasing
Slightly volatile
Investments551 M510.7 M
Significantly Up
Increasing
Slightly volatile
Investments Current239.2 M288.4 M
Significantly Down
Increasing
Slightly volatile
Investments Non Current239.9 M222.3 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net634.5 M588.1 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables520 M482 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities950.6 M949.6 M
Slightly Up
Increasing
Slightly volatile
Current Assets1.9 B2.4 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current1.3 B1.2 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities681 M631.2 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current376.8 M318.5 M
Fairly Up
Decreasing
Stable
Total Debt35.8 M34.9 M
Fairly Up
Decreasing
Slightly volatile
Debt Current2.3 M2.3 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current33.4 M32.6 M
Fairly Up
Decreasing
Slightly volatile
Operating Income(246.6 M)(240.3 M)
Fairly Down
Decreasing
Very volatile
Gross Margin0.910.951
Sufficiently Down
Decreasing
Slightly volatile

Incyte Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Incyte Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Incyte Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Incyte Corp's degree of accounting gimmicks and manipulations.

About Incyte Corp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

51.94 MillionShare
Incyte Corp Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Incyte Corp reported Depreciation Amortization and Accretion of 51.81 Million in 2020

Incyte Corp Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Incyte Corp. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues1.11 B1.54 B1.88 B2.16 B2.67 B2.88 B
Total Assets1.64 B2.3 B2.65 B3.43 B3.56 B3.84 B
Current Assets994.18 M1.5 B1.83 B2.48 B2.36 B1.89 B
Assets Non Current644.42 M797.73 M813.51 M945.26 M1.2 B1.3 B
Total Liabilities1.22 B671.95 M719.79 M828.34 M949.65 M950.64 M
Current Liabilities273.5 M375.4 M425.28 M513.34 M631.2 M681.03 M
Total Debt651.48 M24 M17.43 M50.88 M34.86 M35.77 M
Debt Non Current651.48 M16.61 M17.43 M31.92 M32.57 M33.43 M
Operating Income162.42 M(235.68 M)155.4 M421.69 M(240.29 M)(246.61 M)
Investments188.19 M404.49 M373.54 M418.53 M510.67 M550.99 M
Investments Current156.2 M270.14 M274.34 M284.87 M288.37 M239.21 M

About Incyte Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Incyte Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Incyte Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Incyte Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics in the United States and internationally. The company was incorporated in 1991 and is headquartered in Wilmington, Delaware. Incyte Corp operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 1773 people.

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Please see Risk vs Return Analysis. Note that the Incyte Corp information on this page should be used as a complementary analysis to other Incyte Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Tools for Incyte Stock

When running Incyte Corp price analysis, check to measure Incyte Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Incyte Corp is operating at the current time. Most of Incyte Corp's value examination focuses on studying past and present price action to predict the probability of Incyte Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Incyte Corp's price. Additionally, you may evaluate how the addition of Incyte Corp to your portfolios can decrease your overall portfolio volatility.
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