Filing Flows

Filing Flows › Companies › Biogen › Earnings quality

Biogen earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score53 / 100 · grade C · rank 832 of 1027

Biogen (BIIB) scores 53 of 100 for earnings quality, grade C: rank 832 of 1027 companies and 99 of 126 in health. It loses the most points on accruals of -3.2% of assets, higher than 61% of companies (profit backed by cash), adjusted earnings 80% below GAAP, Dechow F-score 1.72 (above normal). It earns full or near-full marks for profit steadier than cash flow (smoothness 0.67), Beneish M-score -2.67: clean (below −2.22).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -3.2% of assets, higher than 61% of companies (profit backed by cash)820
Beneish M-scoreBeneish M-score -2.67: clean (below −2.22)1515
Dechow F-scoreDechow F-score 1.72 (above normal)815
Montier C-scoreMontier C-score 2 of 6 checks failed1015
Discretionary accrualsdiscretionary accruals of -5.3% of assets (modified Jones), larger than most310
Piotroski F-scorePiotroski F-score 4 of 9410
Non-GAAP gapadjusted earnings 80% below GAAP010
Earnings smoothnessprofit steadier than cash flow (smoothness 0.67)55
BIIB: share of the available points, by componentBIIB: share of the available points, by componentAccruals39%Discretionary accruals31%Beneish M-score100%Dechow F-score51%Montier C-score67%Piotroski F-score44%Earnings smoothness94%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

Every company ranked → The full quality workbench, live → Biogen: cash flow →

Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.