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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.13 (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 -2.13 signals that the company is a manipulator.

ABC' s 10-Year Beneish M-Score Range
Min: -3.11   Max: 2.47
Current: -2.13

-3.11
2.47

During the past 13 years, the highest Beneish M-Score of AmerisourceBergen Corp was 2.47. The lowest was -3.11. 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 * 0.9894+0.528 * 1.3345+0.404 * 0.8462+0.892 * 1.3518+0.115 * 0.98
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8232+4.679 * -0.0152-0.327 * 1.0648
=-2.13

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was -12.78 + 180.077 + 41.385 + 51.023 = $260 Mil.
Non Operating Income was -34.266 + 3.783 + 0.597 + 1.295 = $-29 Mil.
Cash Flow from Operations was 519.842 + 1116.296 + -1003.643 + -30.939 = $602 Mil.
Accounts Receivable was $4,585 Mil.
Revenue was 21906.648 + 20523.668 + 21466.314 + 19288.296 = $83,185 Mil.
Gross Profit was 562.45 + 716.989 + 671.924 + 691.73 = $2,643 Mil.
Total Current Assets was $12,139 Mil.
Total Assets was $16,579 Mil.
Property, Plant and Equipment(Net PPE) was $777 Mil.
Depreciation, Depletion and Amortization(DDA) was $159 Mil.
Selling, General & Admin. Expense(SGA) was $1,336 Mil.
Total Current Liabilities was $12,442 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)
=(6133.228 / 112449.459) / (4585.488 / 83184.926)
=0.05454209 / 0.05512403
=0.9894

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)
=(729.593 / 83184.926) / (692.004 / 112449.459)
=0.0317737 / 0.02380958
=1.3345

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 - (15891.386 + 882.162) / 20630.606) / (1 - (12139.073 + 777.091) / 16579.332)
=0.18695806 / 0.22094786
=0.8462

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
=112449.459 / 83184.926
=1.3518

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))
=(159.353 / (159.353 + 777.091)) / (185.366 / (185.366 + 882.162))
=0.17016821 / 0.17364041
=0.98

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)
=(1486.315 / 112449.459) / (1335.607 / 83184.926)
=0.01321763 / 0.01605588
=0.8232

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)
=((1995.482 + 16339.359) / 20630.606) / ((1396.439 + 12441.648) / 16579.332)
=0.88872043 / 0.8346589
=1.0648

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
=(259.705 - -28.591 - 601.556) / 20630.606
=-0.0152

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 -2.13 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 0.91981.1381.15730.93850.94351.10070.89960.97421.03581.3886
GMI 1.10431.12940.9951.03551.20750.99650.9680.95510.94271.1777
AQI 1.05681.01880.94751.0470.97720.90130.93240.96911.19220.8262
SGI 1.07091.02631.12141.07961.06231.02241.08631.0290.99091.1065
DEPI 1.17661.05070.93920.93611.15361.11941.03520.91130.88260.9056
SGAI 0.87591.00960.99130.93690.74920.9790.9550.99691.03570.9803
LVGI 0.94020.98771.08721.1031.03761.02540.99261.0131.03851.0488
TATA -0.0291-0.0959-0.0269-0.0598-0.0397-0.0206-0.0325-0.0311-0.0384-0.0187
M-score -2.49-2.69-2.41-2.74-2.51-2.50-2.68-2.67-2.62-2.11

AmerisourceBergen Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.99190.99571.03581.17241.081.12681.38221.19531.21280.9894
GMI 0.98130.98190.94270.92760.92471.01331.17791.29211.39511.3345
AQI 1.02321.17811.19221.1731.08690.93730.82620.79780.81880.8462
SGI 1.02581.01360.99090.99881.00061.0321.11171.19211.28331.3518
DEPI 0.88860.92090.88260.87740.85450.86840.89770.92640.99360.98
SGAI 0.97490.98991.03571.08841.131.07330.99150.89010.83350.8232
LVGI 1.03081.03181.03851.03511.0521.0571.04881.05081.05381.0648
TATA -0.0355-0.027-0.03840.0057-0.0513-0.0493-0.01870.01410.0137-0.0152
M-score -2.65-2.55-2.62-2.30-2.71-2.63-2.12-2.00-1.82-2.13
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