Switch to:
Pfizer Inc (NYSE:PFE)
Beneish M-Score
-2.97 (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.

Pfizer Inc has a M-score of -2.97 suggests that the company is not a manipulator.

PFE' s 10-Year Beneish M-Score Range
Min: -3.15   Max: -1.46
Current: -2.97

-3.15
-1.46

During the past 13 years, the highest Beneish M-Score of Pfizer Inc was -1.46. The lowest was -3.15. 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 Pfizer Inc 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 * 0.4423+0.528 * 1.0038+0.404 * 1.0203+0.892 * 0.9494+0.115 * 1.0311
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0152+4.679 * 0.0108-0.327 * 0.9691
=-2.97

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $9,399 Mil.
Revenue was 11353 + 13558 + 12643 + 12973 = $50,527 Mil.
Gross Profit was 9308 + 10764 + 10356 + 10731 = $41,159 Mil.
Total Current Assets was $57,793 Mil.
Total Assets was $171,808 Mil.
Property, Plant and Equipment(Net PPE) was $12,347 Mil.
Depreciation, Depletion and Amortization(DDA) was $6,092 Mil.
Selling, General & Admin. Expense(SGA) was $14,178 Mil.
Total Current Liabilities was $24,790 Mil.
Long-Term Debt was $27,649 Mil.
Net Income was 2329 + 2568 + 2590 + 14095 = $21,582 Mil.
Non Operating Income was 0 + 0 + 0 + 1324 = $1,324 Mil.
Cash Flow from Operations was 2935 + 5786 + 5908 + 3768 = $18,397 Mil.
Accounts Receivable was $22,382 Mil.
Revenue was 12410 + 13891 + 12953 + 13968 = $53,222 Mil.
Gross Profit was 10147 + 11138 + 10644 + 11592 = $43,521 Mil.
Total Current Assets was $64,763 Mil.
Total Assets was $187,398 Mil.
Property, Plant and Equipment(Net PPE) was $13,950 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,208 Mil.
Selling, General & Admin. Expense(SGA) was $14,710 Mil.
Total Current Liabilities was $27,543 Mil.
Long-Term Debt was $31,481 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)
=(9399 / 50527) / (22382 / 53222)
=0.18601936 / 0.42054038
=0.4423

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)
=(10764 / 53222) / (9308 / 50527)
=0.81772575 / 0.81459418
=1.0038

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 - (57793 + 12347) / 171808) / (1 - (64763 + 13950) / 187398)
=0.59175359 / 0.57996884
=1.0203

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
=50527 / 53222
=0.9494

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))
=(7208 / (7208 + 13950)) / (6092 / (6092 + 12347))
=0.34067492 / 0.33038668
=1.0311

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)
=(14178 / 50527) / (14710 / 53222)
=0.28060245 / 0.27638946
=1.0152

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)
=((27649 + 24790) / 171808) / ((31481 + 27543) / 187398)
=0.30521862 / 0.31496601
=0.9691

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
=(21582 - 1324 - 18397) / 171808
=0.0108

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.

Pfizer Inc has a M-score of -2.97 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.

Pfizer Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.01370.99141.00991.05490.93751.56380.73061.48590.5680.9288
GMI 0.90351.02611.00641.09660.92291.01191.06360.98570.95611.0076
AQI 0.91620.86450.96261.03041.07841.22420.98080.99990.97991.0366
SGI 1.0950.96771.02041.0010.99751.03551.30311.00140.83750.9438
DEPI 0.83650.84841.05910.97190.89681.60330.56610.85070.9781.0763
SGAI 0.92511.0340.99771.00140.93270.98820.97880.99110.96191.0026
LVGI 1.07911.08410.80511.05691.24421.20020.910.9880.95460.965
TATA -0.0339-0.05110.011-0.0509-0.0912-0.0373-0.0164-0.0544-0.01170.0246
M-score -2.66-2.85-2.34-2.63-3.06-2.00-2.53-2.31-3.09-2.44

Pfizer Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.47510.98180.92740.95140.56151.14540.61511.0030.94640.4423
GMI 0.9880.98590.9720.9740.95750.96830.98270.99151.00371.0038
AQI 0.99991.0210.99991.02940.97990.93950.98350.97271.03661.0203
SGI 1.00880.98510.95590.89070.84730.830.84780.89590.92620.9494
DEPI 0.85070.86560.87110.92260.9781.05051.00560.97641.07631.0311
SGAI 0.99050.98050.94690.96660.96260.9620.99860.99431.00251.0152
LVGI 0.9880.98740.99811.02250.95460.96450.9090.90160.9650.9691
TATA -0.0544-0.0427-0.0281-0.0354-0.0023-0.00190.05030.04270.01690.0108
M-score -2.31-2.72-2.74-2.80-3.04-2.52-2.72-2.36-2.48-2.97
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide