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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.69 (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 -2.69 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: -2.69

-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 * 1.0461+0.528 * 0.9165+0.404 * 1.1942+0.892 * 1.1086+0.115 * 0.7796
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1423+4.679 * -0.0729-0.327 * 0.9676
=-2.69

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $8,767 Mil.
Revenue was 35698.357 + 36709.046 + 35470.378 + 34233.556 = $142,111 Mil.
Gross Profit was 1075.331 + 964.877 + 973.574 + 891.464 = $3,905 Mil.
Total Current Assets was $22,070 Mil.
Total Assets was $32,495 Mil.
Property, Plant and Equipment(Net PPE) was $1,095 Mil.
Depreciation, Depletion and Amortization(DDA) was $327 Mil.
Selling, General & Admin. Expense(SGA) was $2,160 Mil.
Total Current Liabilities was $23,771 Mil.
Long-Term Debt was $4,369 Mil.
Net Income was 604.135 + 330.377 + 364.287 + 214.163 = $1,513 Mil.
Non Operating Income was 0.756 + 0.31 + -33.035 + 1.534 = $-30 Mil.
Cash Flow from Operations was 879.738 + 750.848 + 1160.114 + 1121.581 = $3,912 Mil.
Accounts Receivable was $7,560 Mil.
Revenue was 32669.267 + 33588.602 + 31588.708 + 30348.154 = $128,195 Mil.
Gross Profit was 911.976 + 752.299 + 872.544 + 692.004 = $3,229 Mil.
Total Current Assets was $19,557 Mil.
Total Assets was $27,006 Mil.
Property, Plant and Equipment(Net PPE) was $956 Mil.
Depreciation, Depletion and Amortization(DDA) was $209 Mil.
Selling, General & Admin. Expense(SGA) was $1,706 Mil.
Total Current Liabilities was $20,226 Mil.
Long-Term Debt was $3,943 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)
=(8766.994 / 142111.337) / (7560.122 / 128194.731)
=0.06169102 / 0.05897373
=1.0461

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)
=(964.877 / 128194.731) / (1075.331 / 142111.337)
=0.02518686 / 0.02748019
=0.9165

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 - (22070.068 + 1094.711) / 32495.355) / (1 - (19556.823 + 955.558) / 27005.53)
=0.28713568 / 0.24043775
=1.1942

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
=142111.337 / 128194.731
=1.1086

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))
=(208.612 / (208.612 + 955.558)) / (326.71 / (326.71 + 1094.711))
=0.17919376 / 0.22984746
=0.7796

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)
=(2160.022 / 142111.337) / (1705.794 / 128194.731)
=0.01519951 / 0.01330627
=1.1423

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)
=((4368.586 + 23770.91) / 32495.355) / ((3942.517 + 20225.906) / 27005.53)
=0.86595441 / 0.89494348
=0.9676

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
=(1512.962 - -30.435 - 3912.281) / 32495.355
=-0.0729

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 -2.69 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 1.15730.93850.94351.10070.89960.97421.03581.38860.76741.1455
GMI 0.9951.03551.20750.99650.9680.95510.94271.17771.14310.9609
AQI 0.94751.0470.97720.90130.93240.96911.19220.82620.90481.301
SGI 1.12141.07961.06231.02241.08631.0290.99091.10651.35941.1371
DEPI 0.93920.93611.15361.11941.03520.91130.88260.90560.99340.8687
SGAI 0.99130.93690.74920.9790.9550.99691.03570.98030.87551.0627
LVGI 1.08721.1031.03761.02540.99261.0131.03851.04881.03951.0566
TATA -0.0269-0.0598-0.0397-0.0206-0.0325-0.0311-0.0384-0.0187-0.0538-0.1446
M-score -2.41-2.74-2.51-2.50-2.68-2.67-2.62-2.11-2.58-2.84

AmerisourceBergen Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.19531.21280.98940.77090.89090.94271.05451.14551.04571.0461
GMI 1.29211.39511.33451.14281.07390.97260.91730.96090.91330.9165
AQI 0.79780.81880.84620.90480.81811.30541.26661.3011.96171.1942
SGI 1.19211.28331.35181.35311.29051.23251.17461.13711.12181.1086
DEPI 0.93450.98410.97060.99340.9680.97040.89950.86870.84390.7796
SGAI 0.89010.83350.82320.86560.92270.96791.0431.06271.131.1423
LVGI 1.05081.05381.06481.03951.05211.01821.02341.05661.00920.9676
TATA 0.01410.0137-0.0153-0.0538-0.1324-0.1317-0.145-0.143-0.107-0.0729
M-score -2.00-1.82-2.13-2.58-2.98-2.84-2.92-2.84-2.53-2.69
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