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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

ABC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Max: 2.47
Current: -2.49

-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 * 1.0791+0.528 * 0.9116+0.404 * 1.2294+0.892 * 1.096+0.115 * 0.8254
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.091+4.679 * -0.0408-0.327 * 0.9575
=-2.49

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $8,985 Mil.
Revenue was 36881.68 + 35698.357 + 36709.046 + 35470.378 = $144,759 Mil.
Gross Profit was 1107.863 + 1075.331 + 964.877 + 973.574 = $4,122 Mil.
Total Current Assets was $21,457 Mil.
Total Assets was $31,914 Mil.
Property, Plant and Equipment(Net PPE) was $1,166 Mil.
Depreciation, Depletion and Amortization(DDA) was $356 Mil.
Selling, General & Admin. Expense(SGA) was $2,177 Mil.
Total Current Liabilities was $23,997 Mil.
Long-Term Debt was $3,794 Mil.
Net Income was 349.803 + 604.135 + 330.377 + 364.287 = $1,649 Mil.
Non Operating Income was 2.158 + 0.756 + 0.31 + -33.035 = $-30 Mil.
Cash Flow from Operations was 191.372 + 879.738 + 750.848 + 1160.114 = $2,982 Mil.
Accounts Receivable was $7,597 Mil.
Revenue was 34233.556 + 32669.267 + 33588.602 + 31588.708 = $132,080 Mil.
Gross Profit was 891.464 + 911.976 + 752.299 + 872.544 = $3,428 Mil.
Total Current Assets was $19,902 Mil.
Total Assets was $27,334 Mil.
Property, Plant and Equipment(Net PPE) was $959 Mil.
Depreciation, Depletion and Amortization(DDA) was $229 Mil.
Selling, General & Admin. Expense(SGA) was $1,821 Mil.
Total Current Liabilities was $21,117 Mil.
Long-Term Debt was $3,743 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)
=(8984.533 / 144759.461) / (7596.558 / 132080.133)
=0.06206526 / 0.05751477
=1.0791

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)
=(3428.283 / 132080.133) / (4121.645 / 144759.461)
=0.02595608 / 0.02847237
=0.9116

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 - (21457.255 + 1165.663) / 31914.243) / (1 - (19902.034 + 958.687) / 27333.504)
=0.29113412 / 0.23680766
=1.2294

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
=144759.461 / 132080.133
=1.096

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))
=(229.328 / (229.328 + 958.687)) / (355.842 / (355.842 + 1165.663))
=0.1930346 / 0.23387501
=0.8254

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)
=(2177.31 / 144759.461) / (1820.927 / 132080.133)
=0.01504088 / 0.01378653
=1.091

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)
=((3794.036 + 23997.255) / 31914.243) / ((3742.781 + 21117.291) / 27333.504)
=0.87081154 / 0.90950915
=0.9575

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
=(1648.602 - -29.811 - 2982.072) / 31914.243
=-0.0408

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 -2.49 suggests that the company will not 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

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 1.15730.93850.94351.10070.89960.98191.00541.41950.76741.1455
GMI 0.9951.03551.20750.99650.9680.96750.9261.18351.14310.9609
AQI 0.94751.0470.97720.90130.93240.95051.20340.83450.90481.301
SGI 1.12141.07961.06231.02241.08631.00950.99221.12651.35941.1371
DEPI 0.93920.93611.15361.11941.03520.93080.86310.90660.99340.8687
SGAI 0.99130.93690.74570.97890.95960.96531.02071.02720.87551.0627
LVGI 1.08721.1031.03761.02540.99261.01471.03681.04871.03951.0566
TATA -0.0269-0.0598-0.0397-0.0206-0.0325-0.0311-0.0384-0.0187-0.0538-0.1446
M-score -2.41-2.74-2.51-2.50-2.68-2.68-2.65-2.07-2.58-2.84

AmerisourceBergen Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.19680.98190.76740.89090.94271.05451.14551.04571.04611.0791
GMI 1.40861.35031.14311.07390.97260.91730.96090.91330.91650.9116
AQI 0.81880.84620.90480.81811.30541.26661.3011.96171.19421.2294
SGI 1.30051.36211.35941.29051.23251.17461.13711.12181.10861.096
DEPI 1.00061.01650.99340.97650.97040.89950.86870.84390.77960.8254
SGAI 0.86090.83640.87550.92270.96791.0431.06271.131.14231.091
LVGI 1.05381.06481.03951.05211.01821.02341.05661.00920.96760.9575
TATA 0.0156-0.0134-0.052-0.1309-0.1334-0.1467-0.1446-0.1085-0.0729-0.0408
M-score -1.81-2.10-2.57-2.97-2.84-2.92-2.84-2.54-2.69-2.49
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