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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.11 (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 -2.11 signals that the company is a manipulator.

ABC' s 10-Year Beneish M-Score Range
Min: -3.12   Max: 2.47
Current: -2.11

-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 * 0.9819+0.528 * 1.3503+0.404 * 0.8462+0.892 * 1.3621+0.115 * 1.0165
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8364+4.679 * -0.0152-0.327 * 1.0648
=-2.11

* 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 + 21059.811 + 19064.443 = $82,555 Mil.
Gross Profit was 562.45 + 716.989 + 660.828 + 713.817 = $2,654 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 $167 Mil.
Selling, General & Admin. Expense(SGA) was $1,305 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 / 82554.57)
=0.05454209 / 0.05554493
=0.9819

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 / 82554.57) / (692.004 / 112449.459)
=0.03214945 / 0.02380958
=1.3503

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 / 82554.57
=1.3621

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))
=(166.559 / (166.559 + 777.091)) / (185.366 / (185.366 + 882.162))
=0.17650506 / 0.17364041
=1.0165

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) / (1304.547 / 82554.57)
=0.01321763 / 0.01580224
=0.8364

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 -2.11 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 0.91941.13681.15730.938511.03850.89960.96581.02211.4195
GMI 1.10061.12410.9951.035511.20330.9680.96680.92671.1835
AQI 1.05681.01880.94751.0470.97720.88080.93240.95051.20340.8345
SGI 1.07131.02741.12141.079601.0861.08631.02630.9761.1265
DEPI 1.17661.05070.93920.93611.15361.29131.03520.9010.89170.9066
SGAI 0.87591.02620.99130.936910.72990.95960.98391.00141.0272
LVGI 0.94020.98771.08721.1031.03761.06390.99261.01471.03681.0487
TATA -0.0291-0.1007-0.0269-0.0598-0.0603-0.0206-0.0325-0.0311-0.0376-0.0187
M-score -2.49-2.72-2.41-2.74-3.66-2.35-2.68-2.68-2.64-2.07

AmerisourceBergen Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.99961.00911.01781.18971.0861.12041.42551.1741.19680.9819
GMI 0.99791.0010.92680.90580.90060.98231.18331.30321.40861.3503
AQI 1.02321.17811.20341.1731.08690.93730.83450.79780.81880.8462
SGI 1.01781.00020.98010.98420.9951.03791.12181.21371.30051.3621
DEPI 1.05221.12180.89170.78950.71660.68730.90660.90231.00061.0165
SGAI 0.94430.94121.00741.05591.12951.1111.02120.9330.86090.8364
LVGI 1.03081.03181.03681.03511.0521.0571.04871.05081.05381.0648
TATA -0.0355-0.027-0.03760.0064-0.0506-0.0486-0.01870.01410.0137-0.0152
M-score -2.62-2.51-2.64-2.31-2.73-2.67-2.07-2.00-1.82-2.11
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