GlaxoSmithKline Pakistan (KAR:GLAXO) Beneish M-Score : -2.78 (As of Apr. 07, 2025)

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What is GlaxoSmithKline Pakistan 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for GlaxoSmithKline Pakistan's Beneish M-Score or its related term are showing as below:

KAR:GLAXO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13 Med: -2.37 Max: 0.57
Current: -2.78

During the past 13 years, the highest Beneish M-Score of GlaxoSmithKline Pakistan was 0.57. The lowest was -3.13. And the median was -2.37.

GlaxoSmithKline Pakistan Beneish M-Score Historical Data

The historical data trend for GlaxoSmithKline Pakistan'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.

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GlaxoSmithKline Pakistan Beneish M-Score Chart

GlaxoSmithKline Pakistan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.19

-3.00

-2.30

-0.87

-1.68

GlaxoSmithKline Pakistan 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															-0.96	-1.68	-2.59	-2.98	-2.78

Competitive Comparison of GlaxoSmithKline Pakistan's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, GlaxoSmithKline Pakistan'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.

GlaxoSmithKline Pakistan's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, GlaxoSmithKline Pakistan's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where GlaxoSmithKline Pakistan's Beneish M-Score falls into.

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GlaxoSmithKline Pakistan 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 GlaxoSmithKline Pakistan 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 * 1.0431

0.528 * 0.4859

0.404 * 0.8458

0.892 * 1.1529

0.115 * 0.9653

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7046

4.679 * -0.042148

0.327 * 0.9853

-2.78

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ₨9,716 Mil.
Revenue was 14730.94 + 13254.797 + 15616.126 + 12631.407 = ₨56,233 Mil.
Gross Profit was 4040.857 + 3231.589 + 2268.858 + 880.117 = ₨10,421 Mil.
Total Current Assets was ₨33,783 Mil.
Total Assets was ₨47,257 Mil.
Property, Plant and Equipment(Net PPE) was ₨12,377 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨1,095 Mil.
Selling, General, & Admin. Expense(SGA) was ₨2,946 Mil.
Total Current Liabilities was ₨20,055 Mil.
Long-Term Debt & Capital Lease Obligation was ₨144 Mil.
Net Income was 1927.134 + 1088.869 + 565.281 + 925.574 = ₨4,507 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ₨0 Mil.
Cash Flow from Operations was 2557.393 + 1875.513 + 443.333 + 1622.413 = ₨6,499 Mil.

Total Receivables was ₨8,079 Mil.
Revenue was 13770.544 + 11860.206 + 11399.12 + 11747.582 = ₨48,777 Mil.
Gross Profit was 1028.077 + 482.241 + 1112.847 + 1769.124 = ₨4,392 Mil.
Total Current Assets was ₨26,807 Mil.
Total Assets was ₨39,098 Mil.
Property, Plant and Equipment(Net PPE) was ₨11,217 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨955 Mil.
Selling, General, & Admin. Expense(SGA) was ₨3,626 Mil.
Total Current Liabilities was ₨16,948 Mil.
Long-Term Debt & Capital Lease Obligation was ₨14 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)
	=	(9715.604 / 56233.27)	/	(8079.043 / 48777.452)
	=	0.172773	/	0.165631
	=	1.0431

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)
	=	(4392.289 / 48777.452)	/	(10421.421 / 56233.27)
	=	0.090048	/	0.185325
	=	0.4859

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 - (33782.636 + 12376.614) / 47256.928)	/	(1 - (26806.615 + 11217.221) / 39097.572)
	=	0.023228	/	0.027463
	=	0.8458

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
	=	56233.27	/	48777.452
	=	1.1529

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))
	=	(955.288 / (955.288 + 11217.221))	/	(1095.262 / (1095.262 + 12376.614))
	=	0.078479	/	0.0813
	=	0.9653

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)
	=	(2945.735 / 56233.27)	/	(3626.274 / 48777.452)
	=	0.052384	/	0.074343
	=	0.7046

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)
	=	((144.091 + 20054.62) / 47256.928)	/	((13.765 + 16947.584) / 39097.572)
	=	0.427423	/	0.433821
	=	0.9853

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
	=	(4506.858 - 0	-	6498.652)	/	47256.928
	=	-0.042148

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.

GlaxoSmithKline Pakistan has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

GlaxoSmithKline Pakistan Beneish M-Score Related Terms

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GlaxoSmithKline Pakistan Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » GlaxoSmithKline Pakistan Ltd (KAR:GLAXO) » Definitions » Beneish M-Score

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Address

35, Dockyard Road, West Wharf, Karachi, PAK, 74000

Website

https://www.pk.gsk.com

GlaxoSmithKline Pakistan Ltd is engaged in research, development, and manufacturing pharmaceutical medicines, vaccines, and consumer healthcare products. It is involved in Anti-infective, Respiratory, Vaccines, Dermatological, Gastrointestinal, Analgesics, Urology, Central Nervous System, Allergy, Cardiovascular and Vitamins therapy areas. The operating business divisions are Pharmaceuticals and Consumer Healthcare. The pharmaceutical brands of the company include Augmentin, Seretide, Amoxil, Velosef, Zantac and Calpol and prominent vaccines include Synflorix, Infanrix Hexa, Rotarix, Engerix-B, Havrix, and Cervarix. The company derives maximum revenue from Pharmaceuticals segment.

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