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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.54 (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 -2.54 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: -2.54

-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 -2.50.


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 * 1.0457+0.528 * 0.9133+0.404 * 1.9617+0.892 * 1.1218+0.115 * 0.8439
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.13+4.679 * -0.1092-0.327 * 1.0092
=-2.54

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $8,381 Mil.
Revenue was 36709.046 + 35470.378 + 34233.556 + 32669.267 = $139,082 Mil.
Gross Profit was 964.877 + 973.574 + 891.464 + 911.976 = $3,742 Mil.
Total Current Assets was $20,362 Mil.
Total Assets was $30,756 Mil.
Property, Plant and Equipment(Net PPE) was $1,060 Mil.
Depreciation, Depletion and Amortization(DDA) was $286 Mil.
Selling, General & Admin. Expense(SGA) was $2,079 Mil.
Total Current Liabilities was $24,024 Mil.
Long-Term Debt was $4,393 Mil.
Net Income was 330.377 + 364.287 + 214.163 + -513.39 = $395 Mil.
Non Operating Income was -0.31 + -33.035 + 1.534 + 11.405 = $-20 Mil.
Cash Flow from Operations was 750.848 + 1160.114 + 1121.581 + 741.72 = $3,774 Mil.
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.



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)
=(8380.652 / 139082.247) / (7144.031 / 123981.367)
=0.06025681 / 0.05762181
=1.0457

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)
=(973.574 / 123981.367) / (964.877 / 139082.247)
=0.02457176 / 0.02690416
=0.9133

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 - (20361.675 + 1059.501) / 30755.802) / (1 - (20144.71 + 907.004) / 24904.916)
=0.30350781 / 0.15471652
=1.9617

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
=139082.247 / 123981.367
=1.1218

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))
=(198.193 / (198.193 + 907.004)) / (285.899 / (285.899 + 1059.501))
=0.17932821 / 0.21250111
=0.8439

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)
=(2078.581 / 139082.247) / (1639.692 / 123981.367)
=0.01494498 / 0.01322531
=1.13

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)
=((4393.317 + 24024.341) / 30755.802) / ((1995.885 + 20805.033) / 24904.916)
=0.92397714 / 0.91551877
=1.0092

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
=(395.437 - -20.406 - 3774.263) / 30755.802
=-0.1092

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 -2.54 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 -0.0269-0.0598-0.0397-0.0206-0.0325-0.0305-0.0384-0.0187-0.0538-0.1446
M-score -2.41-2.74-2.51-2.50-2.68-2.67-2.65-2.07-2.58-2.84

AmerisourceBergen Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.42551.1741.19680.98190.76740.89090.94271.05451.14551.0457
GMI 1.18331.30321.40861.35031.14311.07390.97260.91730.96090.9133
AQI 0.83450.79780.81880.84620.90480.81811.30541.26661.3011.9617
SGI 1.12181.21371.30051.36211.35941.29051.23251.17461.13711.1218
DEPI 0.90660.90231.00061.01650.99340.97650.97040.89950.86870.8439
SGAI 1.02120.9330.86090.83640.87550.92270.96791.0431.06271.13
LVGI 1.04871.05081.05381.06481.03951.05211.01821.02341.05661.0092
TATA -0.01870.01420.0141-0.0149-0.0534-0.1322-0.1343-0.1476-0.1455-0.1092
M-score -2.07-2.00-1.82-2.11-2.58-2.98-2.85-2.93-2.85-2.54
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