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Amgen Beneish M-Score

: -2.80 (As of Today)
View and export this data going back to 1983. Start your Free Trial

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 Amgen's Beneish M-Score or its related term are showing as below:

NAS:AMGN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Med: -2.61   Max: 0.91
Current: -2.8

-3.12
0.91

During the past 13 years, the highest Beneish M-Score of Amgen was 0.91. The lowest was -3.12. And the median was -2.61.


Amgen Beneish M-Score Historical Data

The historical data trend for Amgen'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.

Amgen Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.65 -3.02 -2.62 -2.18 -2.65

Amgen Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.21 -2.45 -2.65 -2.86 -2.80

Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen'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.

   

Amgen Beneish M-Score Distribution

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

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



Amgen 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 Amgen 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 * 0.796+0.528 * 1.0384+0.404 * 1.0437+0.892 * 1.0487+0.115 * 0.9303
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0267+4.679 * -0.039-0.327 * 1.0483
=-2.80

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $4,479 Mil.
Revenue was 6526 + 5901 + 6634 + 6423 = $25,484 Mil.
Gross Profit was 4889 + 4411 + 5037 + 4862 = $19,199 Mil.
Total Current Assets was $19,099 Mil.
Total Assets was $59,773 Mil.
Property, Plant and Equipment(Net PPE) was $4,906 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,470 Mil.
Selling, General, & Admin. Expense(SGA) was $5,757 Mil.
Total Current Liabilities was $14,585 Mil.
Long-Term Debt & Capital Lease Obligation was $28,458 Mil.
Net Income was 464 + 1646 + 1615 + 2021 = $5,746 Mil.
Non Operating Income was -1494 + 13 + 0 + 0 = $-1,481 Mil.
Cash Flow from Operations was 1931 + 2104 + 2153 + 3368 = $9,556 Mil.
Accounts Receivable was $5,366 Mil.
Revenue was 6206 + 6161 + 6197 + 5737 = $24,301 Mil.
Gross Profit was 4718 + 4648 + 4944 + 4701 = $19,011 Mil.
Total Current Assets was $22,895 Mil.
Total Assets was $65,011 Mil.
Property, Plant and Equipment(Net PPE) was $4,843 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,037 Mil.
Selling, General, & Admin. Expense(SGA) was $5,347 Mil.
Total Current Liabilities was $10,523 Mil.
Long-Term Debt & Capital Lease Obligation was $34,133 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(4479 / 25484) / (5366 / 24301)
=0.17575734 / 0.22081396
=0.796

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)
=(19011 / 24301) / (19199 / 25484)
=0.78231349 / 0.75337467
=1.0384

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 - (19099 + 4906) / 59773) / (1 - (22895 + 4843) / 65011)
=0.59839727 / 0.57333374
=1.0437

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
=25484 / 24301
=1.0487

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))
=(3037 / (3037 + 4843)) / (3470 / (3470 + 4906))
=0.38540609 / 0.41427889
=0.9303

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)
=(5757 / 25484) / (5347 / 24301)
=0.22590645 / 0.2200321
=1.0267

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)
=((28458 + 14585) / 59773) / ((34133 + 10523) / 65011)
=0.72010774 / 0.68689914
=1.0483

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
=(5746 - -1481 - 9556) / 59773
=-0.039

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.

Amgen has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.


Amgen Business Description

Amgen logo
Industry
Healthcare » Drug Manufacturers NAICS : 325412 SIC : 2834
Address
One Amgen Center Drive, Thousand Oaks, CA, USA, 91320-1799
Amgen is a leader in biotechnology-based human therapeutics, with historical expertise in renal disease and cancer supportive-care products. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Nexavar and Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), and Lumakras (lung cancer). Amgen's biosimilar portfolio includes Mvasi (biosimilar Avastin), Kanjinti (biosimilar Herceptin), and Amgevita (biosimilar Humira).
Executives
Sugar Ronald D director 10877 WILSHIRE BLVD. SUITE 1650 LOS ANGELES CA 900274
Williams R Sanders director DUKE UNIVERSITY SCHOOL OF MEDICINE TRENT DRIVE DURHAM NC 27706
Santos Esteban officer: EVP, Operations ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Miles Amy E director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MILES AMY E a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Kullman Ellen Jamison director UNITED TECHNOLOGIES CORP 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Grygiel Nancy A. officer: SVP & CCO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Louie Linda H. officer: VP, Finance & CAO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Holley Charles M director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HOLLEY CHARLES M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Griffith Peter H. officer: EVP & CFO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Reese David M officer: EVP, Research and Development ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Druker Brian director ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320-1799
Austin Wanda M director 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Gordon Murdo officer: EVP Global Commercial Ops C/O BRISTOL-MYERS SQUIBB COMPANY 345 PARK AVE NEW YORK NY 10154
Piacquad David officer: SVP, Business Development ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320-1799
Patton Cynthia M officer: SVP & CCO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320-1799

Amgen Headlines

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