Organon (MEX:OGN) Beneish M-Score : -2.18 (As of Dec. 12, 2024)

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What is Organon 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 -2.18 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:OGN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.65 Med: -2.32 Max: -2.16
Current: -2.18

During the past 6 years, the highest Beneish M-Score of Organon was -2.16. The lowest was -3.65. And the median was -2.32.

Organon Beneish M-Score Historical Data

The historical data trend for Organon'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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Organon Beneish M-Score Chart

Organon Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.65

-2.33

-2.16

Organon 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															-2.33	-2.16	-2.20	-2.43	-2.18

Competitive Comparison of Organon's Beneish M-Score

For the Drug Manufacturers - General subindustry, Organon'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.

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

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

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

Organon 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 Organon 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 * 1.1161

0.528 * 1.0393

0.404 * 0.9999

0.892 * 1.0355

0.115 * 1.0748

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8899

4.679 * 0.039811

0.327 * 0.8939

-2.07

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN33,178 Mil.
Revenue was 31150.055 + 29440.406 + 26919.126 + 27124.848 = MXN114,634 Mil.
Gross Profit was 18174.147 + 17202.577 + 15882.616 + 15531.437 = MXN66,791 Mil.
Total Current Assets was MXN93,647 Mil.
Total Assets was MXN251,091 Mil.
Property, Plant and Equipment(Net PPE) was MXN23,707 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN4,665 Mil.
Selling, General, & Admin. Expense(SGA) was MXN31,429 Mil.
Total Current Liabilities was MXN54,936 Mil.
Long-Term Debt & Capital Lease Obligation was MXN172,074 Mil.
Net Income was 7068.818 + 3572.42 + 3335.847 + 9267.939 = MXN23,245 Mil.
Non Operating Income was -1122.347 + -366.402 + -780.024 + -1340.966 = MXN-3,610 Mil.
Cash Flow from Operations was 2776.332 + 6082.274 + 1261.315 + 6738.776 = MXN16,859 Mil.

Total Receivables was MXN28,706 Mil.
Revenue was 26459.305 + 27567.391 + 27722.45 + 28951.56 = MXN110,701 Mil.
Gross Profit was 15798.94 + 16595.295 + 17267.95 + 17370.936 = MXN67,033 Mil.
Total Current Assets was MXN70,547 Mil.
Total Assets was MXN191,817 Mil.
Property, Plant and Equipment(Net PPE) was MXN19,091 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN4,098 Mil.
Selling, General, & Admin. Expense(SGA) was MXN34,107 Mil.
Total Current Liabilities was MXN43,390 Mil.
Long-Term Debt & Capital Lease Obligation was MXN150,604 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)
	=	(33178.156 / 114634.435)	/	(28706.342 / 110700.706)
	=	0.289426	/	0.259315
	=	1.1161

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)
	=	(67033.121 / 110700.706)	/	(66790.777 / 114634.435)
	=	0.605535	/	0.582641
	=	1.0393

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 - (93647.067 + 23707.121) / 251090.706)	/	(1 - (70546.533 + 19091.111) / 191816.894)
	=	0.532622	/	0.532692
	=	0.9999

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
	=	114634.435	/	110700.706
	=	1.0355

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))
	=	(4098.116 / (4098.116 + 19091.111))	/	(4664.97 / (4664.97 + 23707.121))
	=	0.176725	/	0.164421
	=	1.0748

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)
	=	(31429.1 / 114634.435)	/	(34107.261 / 110700.706)
	=	0.274168	/	0.308103
	=	0.8899

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)
	=	((172073.532 + 54935.937) / 251090.706)	/	((150603.783 + 43390.472) / 191816.894)
	=	0.904093	/	1.011351
	=	0.8939

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
	=	(23245.024 - -3609.739	-	16858.697)	/	251090.706
	=	0.039811

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.

Organon has a M-score of -2.07 suggests that the company is unlikely to be a manipulator.

Organon Beneish M-Score Related Terms

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Organon Business Description

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OGN:USA 1OGN:Italy 7XP:Germany

Address

30 Hudson Street, Floor 33, Jersey City, NJ, USA, 07302

Website

https://www.organon.com

Organon & Co is a science-based global pharmaceutical company that develops and delivers health solutions through a portfolio of prescription therapies within women's health, biosimilars, and established brands. The Company's operations include the following product portfolio: Women's health, Biosimilars, and Established medicines. Geographically, it derives a majority of its revenue from Europe and Canada followed by the United States and then Asia Pacific and Japan. The company generates the majority of its revenue from the Established Brands product portfolio.