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Laboratory of America Holdings Beneish M-Score

: -2.35 (As of Today)
View and export this data going back to 1991. 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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:LH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.62   Med: -2.59   Max: -1.49
Current: -2.35

-3.62
-1.49

During the past 13 years, the highest Beneish M-Score of Laboratory of America Holdings was -1.49. The lowest was -3.62. And the median was -2.59.


Laboratory of America Holdings Beneish M-Score Historical Data

The historical data trend for Laboratory of America Holdings'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.

Laboratory of America Holdings 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 -2.42 -2.41 -2.62 -2.58 -2.11

Laboratory of America Holdings 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 -2.64 -2.42 -2.11 -2.24 -2.35

Competitive Comparison

For the Diagnostics & Research subindustry, Laboratory of America Holdings'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.

   

Laboratory of America Holdings Beneish M-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Laboratory of America Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Laboratory of America Holdings's Beneish M-Score falls into.



Laboratory of America Holdings 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 Laboratory of America Holdings 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 * 0.9316+0.528 * 0.7056+0.404 * 0.89+0.892 * 1.4282+0.115 * 0.8822
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7955+4.679 * -0.0123-0.327 * 0.8425
=-2.35

* 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 $2,210 Mil.
Revenue was 3840.7 + 4161.5 + 4489.8 + 3896.1 = $16,388 Mil.
Gross Profit was 1264.8 + 1599 + 1904.9 + 1559.4 = $6,328 Mil.
Total Current Assets was $5,694 Mil.
Total Assets was $20,417 Mil.
Property, Plant and Equipment(Net PPE) was $2,702 Mil.
Depreciation, Depletion and Amortization(DDA) was $707 Mil.
Selling, General, & Admin. Expense(SGA) was $1,826 Mil.
Total Current Liabilities was $2,667 Mil.
Long-Term Debt & Capital Lease Obligation was $6,155 Mil.
Net Income was 467.4 + 769.6 + 938.3 + 703.4 = $2,879 Mil.
Non Operating Income was 15.2 + -6.8 + -5.1 + -79.2 = $-76 Mil.
Cash Flow from Operations was 487.2 + 1157.6 + 774.6 + 786.2 = $3,206 Mil.
Accounts Receivable was $1,661 Mil.
Revenue was 2768.8 + 2823.8 + 2953.4 + 2928.5 = $11,475 Mil.
Gross Profit was 760.5 + 728 + 820.7 + 817.3 = $3,127 Mil.
Total Current Assets was $3,413 Mil.
Total Assets was $17,849 Mil.
Property, Plant and Equipment(Net PPE) was $2,628 Mil.
Depreciation, Depletion and Amortization(DDA) was $589 Mil.
Selling, General, & Admin. Expense(SGA) was $1,607 Mil.
Total Current Liabilities was $3,034 Mil.
Long-Term Debt & Capital Lease Obligation was $6,120 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)
=(2210.1 / 16388.1) / (1661 / 11474.5)
=0.13486005 / 0.14475576
=0.9316

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)
=(3126.5 / 11474.5) / (6328.1 / 16388.1)
=0.27247375 / 0.38613994
=0.7056

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 - (5693.5 + 2701.8) / 20417.1) / (1 - (3413.2 + 2627.7) / 17849.1)
=0.58881036 / 0.66155717
=0.89

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
=16388.1 / 11474.5
=1.4282

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))
=(588.6 / (588.6 + 2627.7)) / (707.2 / (707.2 + 2701.8))
=0.18300532 / 0.20745087
=0.8822

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)
=(1826 / 16388.1) / (1607.2 / 11474.5)
=0.11142231 / 0.14006711
=0.7955

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)
=((6155 + 2667.1) / 20417.1) / ((6119.6 + 3034.4) / 17849.1)
=0.43209369 / 0.51285499
=0.8425

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
=(2878.7 - -75.9 - 3205.6) / 20417.1
=-0.0123

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.

Laboratory of America Holdings has a M-score of -2.35 suggests that the company is unlikely to be a manipulator.


Laboratory of America Holdings Beneish M-Score Related Terms

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Laboratory of America Holdings Business Description

Laboratory of America Holdings logo
Industry
Traded in Other Exchanges
Address
358 South Main Street, Burlington, NC, USA, 27215
Laboratory Corporation of America is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from routine blood and urine screens to complex oncology and genomic testing. With the addition of Covance, LabCorp also has a sizable footprint in the global contract research organization market.
Executives
Caveney Brian J officer: EVP, President of Diagnostics 531 SOUTH SPRING STREET BURLINGTON NC 27215
Wilkinson Peter J officer: SVP, Chief Accounting Officer C/O PHARMACEUTICAL PRODUCT DEVELOPMENT 929 NORTH FRONT STREET WILMINGTON NC 28401
Williams R Sanders director DUKE UNIVERSITY SCHOOL OF MEDICINE TRENT DRIVE DURHAM NC 27706
Van Der Vaart Sandra D officer: EVP, Chief Legal Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
King David P director 531 SOUTH SPRING STREET BURLINGTON NC 27215
Kirchgraber Paul R officer: CEO, Covance Drug Development 531 SOUTH SPRING STREET BURLINGTON NC 27215
Schroeder Mark S officer: EVP, President-Diagnostics Lab 531 SOUTH SPRING STREET BURLINGTON NC 27215
Eisenberg Glenn A officer: Chief Financial Officer, EVP P O BOX 1017 CHARLOTTE NC 28201-1017
Berberian Lance officer: EVP, CIO & CTO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BERBERIAN LANCE 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;}
Summy Amy B. officer: EVP, Chief Marketing Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
Seltz Judith C officer: EVP, CHRO 531 SOUTH SPRING STREET BURLINGTON NC 27215
Belingard Jean-luc director 1401 HARBOR BAY PARKWAY ALAMEDA CA 94502
Gilliland Dwight Gary director 531 SOUTH SPRING STREET BURLINGTON NC 27215
Kong Garheng director 712 COLLEGE AVENUE MENLO PARK CA 94025
Neupert Peter M director 13920 SE EASTGATE WAY STE 300 BELLEVUE WA 98005

Laboratory of America Holdings Headlines

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