Change Healthcare Beneish M-Score Historical Data
The historical data trend for Change Healthcare'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.
Change Healthcare Beneish M-Score Chart
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Change Healthcare Annual Data
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Trend |
Mar17 |
Mar18 |
Mar19 |
Mar20 |
Mar21 |
Mar22 |
| Beneish M-Score |
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- |
- |
- |
9.49 |
-2.83 |
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Change Healthcare Quarterly Data
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Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
| Beneish M-Score |
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-1.09 |
-2.33 |
-2.64 |
-2.83 |
-2.87 |
Competitive Comparison of Change Healthcare's Beneish M-Score
For the Health Information Services subindustry, Change Healthcare'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.
Change Healthcare's Beneish M-Score Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Change Healthcare's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Change Healthcare's Beneish M-Score falls into.
Change Healthcare 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 Change Healthcare 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 * 0.9008 | + | 0.528 * 0.9779 | + | 0.404 * 0.9995 | + | 0.892 * 1.0715 | + | 0.115 * 0.9093 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0072 | + | 4.679 * -0.074446 | - | 0.327 * 0.9785 |
| = | -2.87 |
* 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 (Jun22) TTM: | Last Year (Jun21) TTM: |
Total Receivables was $848 Mil.
Revenue was 884.469 + 920.131 + 866.065 + 826.764 = $3,497 Mil.
Gross Profit was 474.247 + 496.729 + 457.041 + 427.582 = $1,856 Mil.
Total Current Assets was $1,146 Mil.
Total Assets was $9,637 Mil.
Property, Plant and Equipment(Net PPE) was $188 Mil.
Depreciation, Depletion and Amortization(DDA) was $689 Mil.
Selling, General, & Admin. Expense(SGA) was $754 Mil.
Total Current Liabilities was $933 Mil.
Long-Term Debt & Capital Lease Obligation was $4,535 Mil.
Net Income was -23.168 + 7.09 + -24.472 + -36.404 = $-77 Mil.
Non Operating Income was -6.051 + -8.044 + -7.824 + -7.689 = $-30 Mil.
Cash Flow from Operations was 83.315 + 258.086 + 177.441 + 151.244 = $670 Mil.
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Total Receivables was $879 Mil.
Revenue was 867.856 + 855.16 + 785.141 + 755.936 = $3,264 Mil.
Gross Profit was 464.585 + 446.793 + 402.891 + 379.26 = $1,694 Mil.
Total Current Assets was $1,136 Mil.
Total Assets was $10,032 Mil.
Property, Plant and Equipment(Net PPE) was $249 Mil.
Depreciation, Depletion and Amortization(DDA) was $623 Mil.
Selling, General, & Admin. Expense(SGA) was $699 Mil.
Total Current Liabilities was $1,013 Mil.
Long-Term Debt & Capital Lease Obligation was $4,804 Mil.
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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) |
| = | (848.035 / 3497.429) | / | (878.582 / 3264.093) |
| = | 0.242474 | / | 0.269166 |
| | = | 0.9008 |
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) |
| = | (1693.529 / 3264.093) | / | (1855.599 / 3497.429) |
| = | 0.518836 | / | 0.530561 |
| | = | 0.9779 |
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 - (1146.401 + 188.204) / 9636.981) | / | (1 - (1135.521 + 249.076) / 10031.851) |
| = | 0.861512 | / | 0.86198 |
| | = | 0.9995 |
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 |
| = | 3497.429 | / | 3264.093 |
| | = | 1.0715 |
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)) |
| = | (622.683 / (622.683 + 249.076)) | / | (689.413 / (689.413 + 188.204)) |
| = | 0.714283 | / | 0.785551 |
| | = | 0.9093 |
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) |
| = | (754.484 / 3497.429) | / | (699.126 / 3264.093) |
| = | 0.215725 | / | 0.214187 |
| | = | 1.0072 |
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) |
| = | ((4535.145 + 932.805) / 9636.981) | / | ((4803.678 + 1013.461) / 10031.851) |
| = | 0.567392 | / | 0.579867 |
| | = | 0.9785 |
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 |
| = | (-76.954 - -29.608 | - | 670.086) | / | 9636.981 |
| | = | -0.074446 |
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.
Change Healthcare has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.
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