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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

ABC' s 10-Year Beneish M-Score Range
Min: -2.74   Max: 2.47
Current: -2.58

-2.74
2.47

During the past 13 years, the highest Beneish M-Score of AmerisourceBergen Corp was 2.47. The lowest was -2.74. And the median was -2.49.


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 * 0.7709+0.528 * 1.1428+0.404 * 0.9048+0.892 * 1.3531+0.115 * 1.0023
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8656+4.679 * -0.0542-0.327 * 1.0395
=-2.58

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $6,313 Mil.
Revenue was 31588.708 + 30348.154 + 28455.903 + 29176.362 = $119,569 Mil.
Gross Profit was 872.544 + 692.004 + 729.593 + 688.225 = $2,982 Mil.
Total Current Assets was $16,800 Mil.
Total Assets was $21,532 Mil.
Property, Plant and Equipment(Net PPE) was $900 Mil.
Depreciation, Depletion and Amortization(DDA) was $193 Mil.
Selling, General & Admin. Expense(SGA) was $1,587 Mil.
Total Current Liabilities was $17,250 Mil.
Long-Term Debt was $1,996 Mil.
Net Income was 67.802 + -12.78 + 180.077 + 41.385 = $276 Mil.
Non Operating Income was 10.052 + -34.266 + 3.783 + 0.597 = $-20 Mil.
Cash Flow from Operations was 830.658 + 519.842 + 1116.296 + -1003.643 = $1,463 Mil.
Accounts Receivable was $6,052 Mil.
Revenue was 24469.04 + 21906.648 + 20523.668 + 21466.314 = $88,366 Mil.
Gross Profit was 567.552 + 562.45 + 716.989 + 671.924 = $2,519 Mil.
Total Current Assets was $14,394 Mil.
Total Assets was $18,919 Mil.
Property, Plant and Equipment(Net PPE) was $804 Mil.
Depreciation, Depletion and Amortization(DDA) was $173 Mil.
Selling, General & Admin. Expense(SGA) was $1,355 Mil.
Total Current Liabilities was $14,871 Mil.
Long-Term Debt was $1,397 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)
=(6312.883 / 119569.127) / (6051.92 / 88365.67)
=0.05279693 / 0.06848723
=0.7709

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)
=(692.004 / 88365.67) / (872.544 / 119569.127)
=0.02850558 / 0.02494261
=1.1428

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 - (16800.205 + 899.582) / 21532.183) / (1 - (14393.651 + 803.561) / 18918.638)
=0.17798455 / 0.19670687
=0.9048

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
=119569.127 / 88365.67
=1.3531

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))
=(172.632 / (172.632 + 803.561)) / (192.733 / (192.733 + 899.582))
=0.17684208 / 0.17644452
=1.0023

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)
=(1587.261 / 119569.127) / (1355.225 / 88365.67)
=0.01327484 / 0.01533656
=0.8656

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)
=((1995.632 + 17250.16) / 21532.183) / ((1396.606 + 14870.635) / 18918.638)
=0.89381518 / 0.85985265
=1.0395

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
=(276.484 - -19.834 - 1463.153) / 21532.183
=-0.0542

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 -2.58 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 1.1381.15730.93850.94351.10070.89960.97421.03581.38860.7674
GMI 1.12940.9951.03551.20750.99650.9680.95510.94271.17771.1431
AQI 1.01880.94751.0470.97720.90130.93240.96911.19220.82620.9048
SGI 1.02631.12141.07961.06231.02241.08631.0290.99091.10651.3594
DEPI 1.05070.93920.93611.15361.11941.03520.91130.88260.90560.9934
SGAI 1.00960.99130.93690.74920.9790.9550.99691.03570.98030.8755
LVGI 0.98771.08721.1031.03761.02540.99261.0131.03851.04881.0395
TATA -0.0959-0.0269-0.0598-0.0397-0.0206-0.0325-0.0311-0.0384-0.0187-0.0538
M-score -2.69-2.41-2.74-2.51-2.50-2.68-2.67-2.62-2.11-2.58

AmerisourceBergen Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.99571.03581.17241.081.12681.38221.19531.21280.98940.7709
GMI 0.98190.94270.92760.92471.01331.17791.29211.39511.33451.1428
AQI 1.17811.19221.1731.08690.93730.82620.79780.81880.84620.9048
SGI 1.01360.99090.99881.00061.0321.11171.19211.28331.35181.3531
DEPI 0.92090.88260.87740.85450.86840.89770.92640.99360.981.0023
SGAI 0.98991.03571.08841.131.07330.99150.89010.83350.82320.8656
LVGI 1.03181.03851.03511.0521.0571.04881.05081.05381.06481.0395
TATA -0.027-0.03840.0057-0.0513-0.0493-0.01870.01410.0137-0.0152-0.0542
M-score -2.55-2.62-2.30-2.71-2.63-2.12-2.00-1.82-2.13-2.58
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