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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

ABC' s 10-Year Beneish M-Score Range
Min: -3.12   Max: 2.47
Current: -2.93

-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 * 1.0545+0.528 * 0.9173+0.404 * 1.2666+0.892 * 1.1746+0.115 * 0.8995
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.043+4.679 * -0.1476-0.327 * 1.0234
=-2.93

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 214.163 + -513.39 + -199.947 + 67.802 = $-431 Mil.
Non Operating Income was 1.534 + 11.405 + 1.314 + -1.332 = $13 Mil.
Cash Flow from Operations was 1121.581 + 741.72 + 896.964 + 830.658 = $3,591 Mil.
Accounts Receivable was $6,133 Mil.
Revenue was 30348.154 + 28455.903 + 29176.362 + 24469.04 = $112,449 Mil.
Gross Profit was 692.004 + 729.593 + 688.225 + 567.552 = $2,677 Mil.
Total Current Assets was $15,891 Mil.
Total Assets was $20,631 Mil.
Property, Plant and Equipment(Net PPE) was $882 Mil.
Depreciation, Depletion and Amortization(DDA) was $185 Mil.
Selling, General & Admin. Expense(SGA) was $1,486 Mil.
Total Current Liabilities was $16,339 Mil.
Long-Term Debt was $1,995 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)
=(7596.558 / 132080.133) / (6133.228 / 112449.459)
=0.05751477 / 0.05454209
=1.0545

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)
=(911.976 / 112449.459) / (891.464 / 132080.133)
=0.02380958 / 0.02595608
=0.9173

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 - (19902.034 + 958.687) / 27333.504) / (1 - (15891.386 + 882.162) / 20630.606)
=0.23680766 / 0.18695806
=1.2666

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
=132080.133 / 112449.459
=1.1746

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))
=(185.366 / (185.366 + 882.162)) / (229.328 / (229.328 + 958.687))
=0.17364041 / 0.1930346
=0.8995

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)
=(1820.927 / 132080.133) / (1486.315 / 112449.459)
=0.01378653 / 0.01321763
=1.043

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)
=((3742.781 + 21117.291) / 27333.504) / ((1995.482 + 16339.359) / 20630.606)
=0.90950915 / 0.88872043
=1.0234

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
=(-431.372 - 12.921 - 3590.923) / 27333.504
=-0.1476

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 -2.93 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.0861.12041.42551.1741.19680.98190.76740.89090.94271.0545
GMI 0.90060.98231.18331.30321.40861.35031.14311.07390.97260.9173
AQI 1.08690.93730.83450.79780.81880.84620.90480.81811.30541.2666
SGI 0.9951.03791.12181.21371.30051.36211.35941.29051.23251.1746
DEPI 0.71660.68730.90660.90231.00061.01650.99340.97650.97040.8995
SGAI 1.12951.1111.02120.9330.86090.83640.87550.92270.96791.043
LVGI 1.0521.0571.04871.05081.05381.06481.03951.05211.01821.0234
TATA -0.0506-0.0486-0.01870.01420.0141-0.0149-0.0534-0.1322-0.1343-0.1476
M-score -2.73-2.67-2.07-2.00-1.82-2.11-2.58-2.98-2.85-2.93
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