HLBBF (H. Lundbeck AS) Beneish M-Score : -2.80 (As of Dec. 13, 2024)

View and export this data going back to 2022. Start your Free Trial

What is H. Lundbeck AS Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for H. Lundbeck AS's Beneish M-Score or its related term are showing as below:

HLBBF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.01 Med: -2.76 Max: -2.23
Current: -2.8

During the past 13 years, the highest Beneish M-Score of H. Lundbeck AS was -2.23. The lowest was -4.01. And the median was -2.76.

H. Lundbeck AS Beneish M-Score Historical Data

The historical data trend for H. Lundbeck AS's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

H. Lundbeck AS Beneish M-Score Chart

H. Lundbeck AS Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.32

-2.71

-2.78

-2.46

-2.67

H. Lundbeck AS Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.78	-2.67	-2.78	-2.69	-2.80

Competitive Comparison of H. Lundbeck AS's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, H. Lundbeck AS's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

H. Lundbeck AS's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, H. Lundbeck AS's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where H. Lundbeck AS's Beneish M-Score falls into.

H. Lundbeck AS Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 H. Lundbeck AS for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0064

0.528 * 0.9705

0.404 * 0.8387

0.892 * 1.1129

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0217

4.679 * -0.06851

0.327 * 0.9362

-2.76

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was $643 Mil.
Revenue was 851.742 + 786.46 + 770.868 + 728.331 = $3,137 Mil.
Gross Profit was 688.896 + 634.158 + 623.779 + 551.589 = $2,498 Mil.
Total Current Assets was $2,530 Mil.
Total Assets was $5,882 Mil.
Property, Plant and Equipment(Net PPE) was $448 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $1,373 Mil.
Total Current Liabilities was $1,157 Mil.
Long-Term Debt & Capital Lease Obligation was $612 Mil.
Net Income was 115.659 + 111.053 + 146.652 + 19.606 = $393 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 342.662 + 175.522 + 140.092 + 137.678 = $796 Mil.

Total Receivables was $574 Mil.
Revenue was 708.674 + 718.579 + 725.526 + 666.391 = $2,819 Mil.
Gross Profit was 551.541 + 552.977 + 575.789 + 498.512 = $2,179 Mil.
Total Current Assets was $1,810 Mil.
Total Assets was $5,391 Mil.
Property, Plant and Equipment(Net PPE) was $407 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $1,208 Mil.
Total Current Liabilities was $1,150 Mil.
Long-Term Debt & Capital Lease Obligation was $582 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(643.346 / 3137.401)	/	(574.438 / 2819.17)
	=	0.205057	/	0.203761
	=	1.0064

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)
	=	(2178.819 / 2819.17)	/	(2498.422 / 3137.401)
	=	0.772858	/	0.796335
	=	0.9705

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (2530.217 + 447.603) / 5882.108)	/	(1 - (1810.038 + 407.287) / 5391.187)
	=	0.49375	/	0.588713
	=	0.8387

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	3137.401	/	2819.17
	=	1.1129

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(0 / (0 + 407.287))	/	(0 / (0 + 447.603))
	=	0	/	0
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(1373.27 / 3137.401)	/	(1207.812 / 2819.17)
	=	0.437709	/	0.428428
	=	1.0217

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((611.938 + 1157.338) / 5882.108)	/	((581.88 + 1150.307) / 5391.187)
	=	0.300789	/	0.3213
	=	0.9362

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
	=	(392.97 - 0	-	795.954)	/	5882.108
	=	-0.06851

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

H. Lundbeck AS has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.

H. Lundbeck AS Beneish M-Score Related Terms

Thank you for viewing the detailed overview of H. Lundbeck AS's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

H. Lundbeck AS Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » H. Lundbeck AS (OTCPK:HLBBF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HLUBF:USA HLUNBc:UK 0ABR:UK 0ND5:UK HLUN A:Denmark HLUN B:Denmark LDBB:Germany LUNB:Austria

Address

Ottiliavej 9, Valby, DNK, 2500

Website

https://www.lundbeck.com

Lundbeck is a Denmark-based pharmaceutical firm that focuses on the development and commercialization of central nervous system drugs including antidepressants, antipsychotics, and antiepileptic products. The company's portfolio includes Abilify Maintena and Rexulti for psychosis, Brintellix/Trintellix for depression, Northera for Parkinson's disease symptoms, Sabril and Onfi for seizures, and Vyepti for migraine prevention. Most of the company's sales are derived in North America, followed by Asia and Europe.