GSK has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of GlaxoSmithKline PLC was -0.01. The lowest was -3.78. And the median was -2.67.
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 GlaxoSmithKline PLC 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 * 0.9756||+||0.528 * 0.9452||+||0.404 * 1.05||+||0.892 * 1.0316||+||0.115 * 0.9746|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.87||+||4.679 * -0.0993||-||0.327 * 1.0595|
|This Year (Dec16) TTM:||Last Year (Dec15) TTM:|
|Accounts Receivable was $5,762 Mil.|
Revenue was 9470.66167291 + 9910.64388962 + 9278.40909091 + 8873.21937322 = $37,533 Mil.
Gross Profit was 6339.57553059 + 6592.6412615 + 6261.36363636 + 5834.75783476 = $25,028 Mil.
Total Current Assets was $20,863 Mil.
Total Assets was $73,759 Mil.
Property, Plant and Equipment(Net PPE) was $13,493 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,394 Mil.
Selling, General & Admin. Expense(SGA) was $12,603 Mil.
Total Current Liabilities was $23,722 Mil.
Long-Term Debt was $18,303 Mil.
Net Income was 320.848938826 + 1061.760841 + -617.897727273 + 401.709401709 = $1,166 Mil.
Non Operating Income was -39.950062422 + 7.88436268068 + -2.84090909091 + 0 = $-35 Mil.
Cash Flow from Operations was 3734.082397 + 2321.94480946 + 1755.68181818 + 716.524216524 = $8,528 Mil.
|Accounts Receivable was $5,725 Mil.
Revenue was 9410.17964072 + 9397.2392638 + 9171.33956386 + 8403.58744395 = $36,382 Mil.
Gross Profit was 5606.28742515 + 6016.87116564 + 6048.28660436 + 5260.0896861 = $22,932 Mil.
Total Current Assets was $24,831 Mil.
Total Assets was $80,009 Mil.
Property, Plant and Equipment(Net PPE) was $14,473 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,492 Mil.
Selling, General & Admin. Expense(SGA) was $14,042 Mil.
Total Current Liabilities was $20,085 Mil.
Long-Term Debt was $22,940 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(5761.54806492 / 37532.9340267)||/||(5724.5508982 / 36382.3459123)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(22931.5348813 / 36382.3459123)||/||(25028.3382632 / 37532.9340267)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (20862.6716604 + 13493.133583) / 73759.051186)||/||(1 - (24830.8383234 + 14473.0538922) / 80008.9820359)|
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.
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))|
|=||(2491.80423154 / (2491.80423154 + 14473.0538922))||/||(2394.48583016 / (2394.48583016 + 13493.133583))|
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)|
|=||(12602.6476949 / 37532.9340267)||/||(14041.7292831 / 36382.3459123)|
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)|
|=||((18303.3707865 + 23721.5980025) / 73759.051186)||/||((22940.1197605 + 20085.3293413) / 80008.9820359)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(1166.42145426 - -34.9066088322||-||8528.23324117)||/||73759.051186|
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.
GlaxoSmithKline PLC has a M-score of -2.95 suggests that the company will not be a manipulator.
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
GlaxoSmithKline PLC Annual Data
GlaxoSmithKline PLC Quarterly Data