Viatris (MIL:1VTRS) Beneish M-Score : -2.75 (As of Dec. 13, 2024)

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What is Viatris 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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:1VTRS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.7 Max: -1.92
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Viatris was -1.92. The lowest was -3.02. And the median was -2.70.

Viatris Beneish M-Score Historical Data

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

Viatris Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.69

-2.06

-2.76

-2.82

-2.84

Viatris 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															-2.62	-2.84	-2.68	-2.76	-2.75

Competitive Comparison of Viatris's Beneish M-Score

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

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

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

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

Viatris 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 Viatris 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 * 1.0629

0.528 * 0.9906

0.404 * 0.9591

0.892 * 0.9546

0.115 * 0.9825

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1891

4.679 * -0.058494

0.327 * 0.9956

-2.79

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €3,554 Mil.
Revenue was 3379.831 + 3527.041 + 3370.328 + 3518.804 = €13,796 Mil.
Gross Profit was 1314.739 + 1342.777 + 1383.68 + 1463.99 = €5,505 Mil.
Total Current Assets was €10,188 Mil.
Total Assets was €40,323 Mil.
Property, Plant and Equipment(Net PPE) was €2,653 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,561 Mil.
Selling, General, & Admin. Expense(SGA) was €4,574 Mil.
Total Current Liabilities was €6,769 Mil.
Long-Term Debt & Capital Lease Obligation was €13,057 Mil.
Net Income was 85.415 + -303.226 + 104.788 + -702.055 = €-815 Mil.
Non Operating Income was -19.191 + -120.12 + 51.704 + -460.334 = €-548 Mil.
Cash Flow from Operations was 744.677 + 352.184 + 565.432 + 429.248 = €2,092 Mil.

Total Receivables was €3,503 Mil.
Revenue was 3693.56 + 3616.868 + 3482.979 + 3658.944 = €14,452 Mil.
Gross Profit was 1584.748 + 1484.738 + 1440.415 + 1202.75 = €5,713 Mil.
Total Current Assets was €10,243 Mil.
Total Assets was €45,672 Mil.
Property, Plant and Equipment(Net PPE) was €2,974 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,773 Mil.
Selling, General, & Admin. Expense(SGA) was €4,030 Mil.
Total Current Liabilities was €6,403 Mil.
Long-Term Debt & Capital Lease Obligation was €16,151 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)
	=	(3554.355 / 13796.004)	/	(3502.975 / 14452.351)
	=	0.257637	/	0.242381
	=	1.0629

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)
	=	(5712.651 / 14452.351)	/	(5505.186 / 13796.004)
	=	0.395275	/	0.399042
	=	0.9906

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 - (10188.238 + 2652.995) / 40323.444)	/	(1 - (10243.284 + 2974.319) / 45671.816)
	=	0.681544	/	0.710596
	=	0.9591

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
	=	13796.004	/	14452.351
	=	0.9546

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))
	=	(2773.333 / (2773.333 + 2974.319))	/	(2560.508 / (2560.508 + 2652.995))
	=	0.482516	/	0.49113
	=	0.9825

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)
	=	(4574.264 / 13796.004)	/	(4029.725 / 14452.351)
	=	0.331564	/	0.278828
	=	1.1891

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)
	=	((13056.842 + 6768.672) / 40323.444)	/	((16151.444 + 6403.458) / 45671.816)
	=	0.491662	/	0.493847
	=	0.9956

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
	=	(-815.078 - -547.941	-	2091.541)	/	40323.444
	=	-0.058494

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.

Viatris has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.

Viatris Beneish M-Score Related Terms

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Viatris Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Viatris Inc (MIL:1VTRS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

VTRS:USA MYL:Mexico 0A5V:UK VIA:Germany VIA:Germany VIA:Germany VIA:Germany MYL:Austria

Address

1000 Mylan Boulevard, Canonsburg, PA, USA, 15317

Website

https://www.viatris.com

Viatris was formed in November 2020 through the combination of Upjohn, a wholly owned subsidiary of Pfizer that specialized in off-patent drugs, and Mylan, a global pharmaceutical manufacturer that focused on generic and specialty drugs. By joining forces, Viatris became one of the largest generic drug manufacturers in the world, servicing over 165 countries. Generics (commoditized and complex) and biosimilars make up roughly 40% of Viatris' total sales. Remaining 60% of sales is derived from its portfolio of legacy products which includes Lipitor, Norvasc, Lyrica, and Viagra. While it covers more than 10 major therapeutic areas, Viatris has identified dermatology, ophthalmology, and gastroenterology as its three key areas of focus for future innovations.

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