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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.00 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

AmerisourceBergen Corp has a M-score of -2.00 signals that the company is a manipulator.

ABC' s 10-Year Beneish M-Score Range
Min: -3.12   Max: 2.47
Current: -2

-3.12
2.47

During the past 13 years, the highest Beneish M-Score of AmerisourceBergen Corp was 2.47. The lowest was -3.12. And the median was -2.49.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 AmerisourceBergen Corp 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 * 1.174+0.528 * 1.3032+0.404 * 0.7978+0.892 * 1.2137+0.115 * 0.9023
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.933+4.679 * 0.0141-0.327 * 1.0508
=-2.00

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $6,214 Mil.
Revenue was 29176.362 + 24469.04 + 21906.648 + 20523.668 = $96,076 Mil.
Gross Profit was 688.225 + 567.552 + 562.45 + 716.989 = $2,535 Mil.
Total Current Assets was $15,228 Mil.
Total Assets was $19,796 Mil.
Property, Plant and Equipment(Net PPE) was $824 Mil.
Depreciation, Depletion and Amortization(DDA) was $175 Mil.
Selling, General & Admin. Expense(SGA) was $1,377 Mil.
Total Current Liabilities was $15,829 Mil.
Long-Term Debt was $1,397 Mil.
Net Income was 41.385 + 51.023 + 168.439 + 45.634 = $306 Mil.
Non Operating Income was 0.597 + 1.295 + -0.525 + -0.749 = $1 Mil.
Cash Flow from Operations was -1003.643 + -30.939 + 75.409 + 985.362 = $26 Mil.
Accounts Receivable was $4,361 Mil.
Revenue was 21059.811 + 19064.443 + 19326.807 + 19708.371 = $79,159 Mil.
Gross Profit was 660.828 + 713.817 + 667.866 + 679.741 = $2,722 Mil.
Total Current Assets was $11,022 Mil.
Total Assets was $15,496 Mil.
Property, Plant and Equipment(Net PPE) was $800 Mil.
Depreciation, Depletion and Amortization(DDA) was $150 Mil.
Selling, General & Admin. Expense(SGA) was $1,216 Mil.
Total Current Liabilities was $11,436 Mil.
Long-Term Debt was $1,396 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(6214.193 / 96075.718) / (4361.266 / 79159.432)
=0.06468016 / 0.05509471
=1.174

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)
=(567.552 / 79159.432) / (688.225 / 96075.718)
=0.03438948 / 0.02638769
=1.3032

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (15228.345 + 824.105) / 19796.095) / (1 - (11022.199 + 800.34) / 15495.532)
=0.18911028 / 0.23703562
=0.7978

4. SGI = Sales Growth Index

Ratio of sales 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
=96075.718 / 79159.432
=1.2137

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(150.19 / (150.19 + 800.34)) / (174.946 / (174.946 + 824.105))
=0.15800659 / 0.17511218
=0.9023

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(1377.072 / 96075.718) / (1216.071 / 79159.432)
=0.01433319 / 0.0153623
=0.933

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1396.776 + 15828.898) / 19796.095) / ((1396.107 + 11435.737) / 15495.532)
=0.87015515 / 0.82809961
=1.0508

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
=(306.481 - 0.618 - 26.189) / 19796.095
=0.0141

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

AmerisourceBergen Corp has a M-score of -2.00 signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

AmerisourceBergen Corp Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.91941.13681.15730.938511.03850.89960.96581.02211.4195
GMI 1.10061.12410.9951.035511.20330.9680.96680.92671.1835
AQI 1.05681.01880.94751.0470.97720.88080.93240.95051.20340.8345
SGI 1.07131.02741.12141.079601.0861.08631.02630.9761.1265
DEPI 1.17661.05070.93920.93611.15361.29131.03520.9010.89170.9066
SGAI 0.87591.02620.99130.936910.72990.95960.98391.00141.0272
LVGI 0.94020.98771.08721.1031.03761.06390.99261.01471.03681.0487
TATA -0.0291-0.1007-0.0269-0.0598-0.0603-0.0206-0.0325-0.0311-0.0376-0.0187
M-score -2.49-2.72-2.41-2.74-3.66-2.35-2.68-2.68-2.64-2.07

AmerisourceBergen Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.96581.02370.99961.00911.01781.18971.0861.12041.42551.174
GMI 0.96680.97060.99791.0010.92680.90580.90060.98231.18331.3032
AQI 0.95050.96241.02321.17811.20341.1731.08690.93730.83450.7978
SGI 1.02631.02451.01781.00020.98010.98420.9951.03791.12181.2137
DEPI 0.9011.03161.05221.12180.89170.78950.71660.68730.90660.9023
SGAI 0.98390.97990.94430.94121.00741.05591.12951.1111.02120.933
LVGI 1.01471.03461.03081.03181.03681.03511.0521.0571.04871.0508
TATA -0.0311-0.0622-0.0355-0.027-0.03760.0064-0.0506-0.0486-0.01870.0141
M-score -2.68-2.76-2.62-2.51-2.64-2.31-2.73-2.67-2.07-2.00
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