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AmerisourceBergen Corp (NYSE:ABC)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

ABC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85   Max: 2.47
Current: -2.85

-2.85
2.47

During the past 13 years, the highest Beneish M-Score of AmerisourceBergen Corp was 2.47. The lowest was -2.85. 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 * 1.1455+0.528 * 0.9609+0.404 * 1.301+0.892 * 1.1371+0.115 * 0.8687
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0627+4.679 * -0.1455-0.327 * 1.0566
=-2.85

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $8,223 Mil.
Revenue was 35470.378 + 34233.556 + 32669.267 + 33588.602 = $135,962 Mil.
Gross Profit was 973.574 + 891.464 + 911.976 + 752.299 = $3,529 Mil.
Total Current Assets was $20,334 Mil.
Total Assets was $27,736 Mil.
Property, Plant and Equipment(Net PPE) was $979 Mil.
Depreciation, Depletion and Amortization(DDA) was $250 Mil.
Selling, General & Admin. Expense(SGA) was $1,918 Mil.
Total Current Liabilities was $22,701 Mil.
Long-Term Debt was $3,493 Mil.
Net Income was 364.287 + 214.163 + -513.39 + -199.947 = $-135 Mil.
Non Operating Income was -33.035 + 1.534 + 11.405 + 1.314 = $-19 Mil.
Cash Flow from Operations was 1160.114 + 1121.581 + 741.72 + 896.964 = $3,920 Mil.
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.



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)
=(8222.951 / 135961.803) / (6312.883 / 119569.127)
=0.06047986 / 0.05279693
=1.1455

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)
=(891.464 / 119569.127) / (973.574 / 135961.803)
=0.02494261 / 0.02595812
=0.9609

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 - (20334.488 + 979.251) / 27736.157) / (1 - (16800.205 + 899.582) / 21532.183)
=0.231554 / 0.17798455
=1.301

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
=135961.803 / 119569.127
=1.1371

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))
=(192.733 / (192.733 + 899.582)) / (249.6 / (249.6 + 979.251))
=0.17644452 / 0.20311657
=0.8687

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)
=(1918.045 / 135961.803) / (1587.261 / 119569.127)
=0.01410723 / 0.01327484
=1.0627

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)
=((3493.048 + 22700.765) / 27736.157) / ((1995.632 + 17250.16) / 21532.183)
=0.9443923 / 0.89381518
=1.0566

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
=(-134.887 - -18.782 - 3920.379) / 27736.157
=-0.1455

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 -2.85 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 1.15730.938511.03850.89960.96581.02211.41950.76741.1455
GMI 0.9951.035511.20330.9680.96680.92671.18351.14310.9609
AQI 0.94751.0470.97720.88080.93240.95051.20340.83450.90481.301
SGI 1.12141.079601.0861.08631.02630.9761.12651.35941.1371
DEPI 0.93920.93611.15361.29131.03520.9010.89170.90660.99340.8687
SGAI 0.99130.936910.72990.95960.98391.00141.02720.87551.0627
LVGI 1.08721.1031.03761.06390.99261.01471.03681.04871.03951.0566
TATA -0.0269-0.0598-0.0603-0.0206-0.0325-0.0311-0.0376-0.0187-0.0538-0.1446
M-score -2.41-2.74-3.66-2.35-2.68-2.68-2.64-2.07-2.58-2.84

AmerisourceBergen Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.12041.42551.1741.19680.98190.76740.89090.94271.05451.1455
GMI 0.98231.18331.30321.40861.35031.14311.07390.97260.91730.9609
AQI 0.93730.83450.79780.81880.84620.90480.81811.30541.26661.301
SGI 1.03791.12181.21371.30051.36211.35941.29051.23251.17461.1371
DEPI 0.68730.90660.90231.00061.01650.99340.97650.97040.89950.8687
SGAI 1.1111.02120.9330.86090.83640.87550.92270.96791.0431.0627
LVGI 1.0571.04871.05081.05381.06481.03951.05211.01821.02341.0566
TATA -0.0486-0.01870.01420.0141-0.0149-0.0534-0.1322-0.1343-0.1476-0.1455
M-score -2.67-2.07-2.00-1.82-2.11-2.58-2.98-2.85-2.93-2.85
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