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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.98 (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 -2.98 suggests that the company is not a manipulator.

ABC' s 10-Year Beneish M-Score Range
Min: -3.12   Max: 2.47
Current: -2.98

-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 -2.47.


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 * 0.8909+0.528 * 1.0739+0.404 * 0.8181+0.892 * 1.2905+0.115 * 0.9765
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9227+4.679 * -0.1329-0.327 * 1.0521
=-2.98

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $7,144 Mil.
Revenue was 33588.602 + 31588.708 + 30348.154 + 28455.903 = $123,981 Mil.
Gross Profit was 752.299 + 872.544 + 692.004 + 729.593 = $3,046 Mil.
Total Current Assets was $20,145 Mil.
Total Assets was $24,905 Mil.
Property, Plant and Equipment(Net PPE) was $907 Mil.
Depreciation, Depletion and Amortization(DDA) was $198 Mil.
Selling, General & Admin. Expense(SGA) was $1,640 Mil.
Total Current Liabilities was $20,805 Mil.
Long-Term Debt was $1,996 Mil.
Net Income was -199.947 + 67.802 + -12.78 + 180.077 = $35 Mil.
Non Operating Income was 1.314 + 10.052 + -34.266 + 3.783 = $-19 Mil.
Cash Flow from Operations was 896.964 + 830.658 + 519.842 + 1116.296 = $3,364 Mil.
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.



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)
=(7144.031 / 123981.367) / (6214.193 / 96075.718)
=0.05762181 / 0.06468016
=0.8909

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)
=(872.544 / 96075.718) / (752.299 / 123981.367)
=0.02638769 / 0.02457176
=1.0739

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 - (20144.71 + 907.004) / 24904.916) / (1 - (15228.345 + 824.105) / 19796.095)
=0.15471652 / 0.18911028
=0.8181

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
=123981.367 / 96075.718
=1.2905

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))
=(174.946 / (174.946 + 824.105)) / (198.193 / (198.193 + 907.004))
=0.17511218 / 0.17932821
=0.9765

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)
=(1639.692 / 123981.367) / (1377.072 / 96075.718)
=0.01322531 / 0.01433319
=0.9227

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)
=((1995.885 + 20805.033) / 24904.916) / ((1396.776 + 15828.898) / 19796.095)
=0.91551877 / 0.87015515
=1.0521

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
=(35.152 - -19.117 - 3363.76) / 24904.916
=-0.1329

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 -2.98 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

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 1.13681.15730.938511.03850.89960.96581.02211.41950.7674
GMI 1.12410.9951.035511.20330.9680.96680.92671.18351.1431
AQI 1.01880.94751.0470.97720.88080.93240.95051.20340.83450.9048
SGI 1.02741.12141.079601.0861.08631.02630.9761.12651.3594
DEPI 1.05070.93920.93611.15361.29131.03520.9010.89170.90660.9934
SGAI 1.02620.99130.936910.72990.95960.98391.00141.02720.8755
LVGI 0.98771.08721.1031.03761.06390.99261.01471.03681.04871.0395
TATA -0.1007-0.0269-0.0598-0.0603-0.0206-0.0325-0.0311-0.0376-0.0187-0.0538
M-score -2.72-2.41-2.74-3.66-2.35-2.68-2.68-2.64-2.07-2.58

AmerisourceBergen Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.01781.18971.0861.12041.42551.1741.19680.98190.76740.8909
GMI 0.92680.90580.90060.98231.18331.30321.40861.35031.14311.0739
AQI 1.20341.1731.08690.93730.83450.79780.81880.84620.90480.8181
SGI 0.98010.98420.9951.03791.12181.21371.30051.36211.35941.2905
DEPI 0.89170.78950.71660.68730.90660.90231.00061.01650.99340.9765
SGAI 1.00741.05591.12951.1111.02120.9330.86090.83640.87550.9227
LVGI 1.03681.03511.0521.0571.04871.05081.05381.06481.03951.0521
TATA -0.03760.0064-0.0506-0.0486-0.01870.01420.0137-0.0151-0.0541-0.1329
M-score -2.64-2.31-2.73-2.67-2.07-2.00-1.82-2.11-2.58-2.98
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