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Bausch Health Beneish M-Score

: -2.52 (As of Today)
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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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BHC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.91   Med: -2.59   Max: 2.32
Current: -2.52

During the past 13 years, the highest Beneish M-Score of Bausch Health was 2.32. The lowest was -3.91. And the median was -2.59.


Bausch Health Beneish M-Score Historical Data

The historical data trend for Bausch Health'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.

Bausch Health Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.60 -2.97 -2.80 -2.78 -2.57

Bausch Health Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.59 -2.75 -2.57 -2.57 -2.52

Competitive Comparison

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

   

Bausch Health Beneish M-Score Distribution

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

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



Bausch Health 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 Bausch Health 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 * 1.0581+0.528 * 0.9994+0.404 * 0.9833+0.892 * 0.9663+0.115 * 1.0607
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0896+4.679 * -0.0222-0.327 * 0.9819
=-2.57

* 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 $1,645 Mil.
Revenue was 1967 + 1918 + 2196 + 2111 = $8,192 Mil.
Gross Profit was 1390 + 1367 + 1570 + 1529 = $5,856 Mil.
Total Current Assets was $5,417 Mil.
Total Assets was $28,171 Mil.
Property, Plant and Equipment(Net PPE) was $1,545 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,444 Mil.
Selling, General, & Admin. Expense(SGA) was $2,631 Mil.
Total Current Liabilities was $4,997 Mil.
Long-Term Debt & Capital Lease Obligation was $21,664 Mil.
Net Income was -145 + -69 + 69 + 188 = $43 Mil.
Non Operating Income was -7 + -30 + -90 + 148 = $21 Mil.
Cash Flow from Operations was 123 + -63 + 24 + 564 = $648 Mil.
Total Receivables was $1,609 Mil.
Revenue was 2100 + 2027 + 2213 + 2138 = $8,478 Mil.
Gross Profit was 1488 + 1453 + 1568 + 1548 = $6,057 Mil.
Total Current Assets was $5,450 Mil.
Total Assets was $30,042 Mil.
Property, Plant and Equipment(Net PPE) was $1,590 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,671 Mil.
Selling, General, & Admin. Expense(SGA) was $2,499 Mil.
Total Current Liabilities was $5,517 Mil.
Long-Term Debt & Capital Lease Obligation was $23,439 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)
=(1645 / 8192) / (1609 / 8478)
=0.20080566 / 0.18978533
=1.0581

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)
=(6057 / 8478) / (5856 / 8192)
=0.71443737 / 0.71484375
=0.9994

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 - (5417 + 1545) / 28171) / (1 - (5450 + 1590) / 30042)
=0.75286642 / 0.76566141
=0.9833

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
=8192 / 8478
=0.9663

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))
=(1671 / (1671 + 1590)) / (1444 / (1444 + 1545))
=0.5124195 / 0.48310472
=1.0607

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)
=(2631 / 8192) / (2499 / 8478)
=0.32116699 / 0.29476292
=1.0896

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)
=((21664 + 4997) / 28171) / ((23439 + 5517) / 30042)
=0.94639878 / 0.96385061
=0.9819

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
=(43 - 21 - 648) / 28171
=-0.0222

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.

Bausch Health has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.


Bausch Health Beneish M-Score Related Terms

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Bausch Health Business Description

Bausch Health logo
Address
2150 Saint Elzear Boulvard West, Laval, QC, CAN, H7L 4A8
Bausch Health Companies Inc develop, manufacture and market, primarily in the therapeutic areas of eye-health, gastroenterology and dermatology, a broad range of branded pharmaceuticals, generic and branded generic pharmaceuticals, over-the-counter products and medical devices, which are marketed directly or indirectly in approximately 100 countries. The company's business segments are Bausch + Lomb, Salix, International Rx, Ortho Dermatologics and Diversified Products with maximum revenue from Bausch + Lomb segment.
Executives
Carson Seana officer: EVP, General Counsel 400 SOMERSET CORPORATE BLVD BRIDGEWATER NJ 08807
Vadaketh Tom George officer: EVP, Chief Financial Officer 1727 JOCKEYS WAY YARDLEY PA 19067
Mulligan Richard director C/O ICAHN CAPITAL LP 767 FIFTH AVENUE, SUITE 4700 NEW YORK NY 10153
Munsch Frederick officer: SVP, Controller and CAO 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Gordon Joseph F officer: Pres&Co-Head Bausch&Lomb/Int'l 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Ackermann Christina officer: EVP AND GENERAL COUNSEL C/O BLCO 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Spurr Robert director, officer: U.S. President-Pharma Business C/O BAUSCH HEALTH COMPANIES INC. 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Eldessouky Sam officer: EVP & Chief Financial Officer C/O BAUSCH HEALTH COMPANIES INC. 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Miller Steven D director 16690 COLLINS AVENUE PH SUNNY ISLE BEACH FL 33160
Icahn Brett director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Paulson John director 1133 AVENUE OF THE AMERICAS 33RD FLOOR NEW YORK NY 10036
Valueact Holdings Ii, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, FOURTH FLOOR SAN FRANCISCO CA 94129
Von Eschenbach Andrew C. director BAUSCH HEALTH COMPANIES INC. 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Mckenna Mark C. officer: President, Salix 400 SOMERSET CORPORATE BOULEVARD BRIDGEWATER NJ 08807
Humphries William D. officer: EVP, COMPANY GROUP CHAIRMAN C/O STRATA SKIN SCIENCES, INC. 5 WALNUT GROVE DRIVE SUITE 140 HORSHAM PA 19044

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