Market Cap : 49.93 B | Enterprise Value : 55.03 B | PE Ratio : 36.96 | PB Ratio : |
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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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for McKesson's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of McKesson was 0.12. The lowest was -2.90. And the median was -2.44.
The historical data trend for McKesson'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.
For the Medical Distribution subindustry, McKesson'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.
For the Medical Distribution industry and Healthcare sector, McKesson's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where McKesson's Beneish M-Score falls into.
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 McKesson 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 * 0.9 | + | 0.528 * 1.0412 | + | 0.404 * 0.8951 | + | 0.892 * 1.0947 | + | 0.115 * 1.0213 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.0436 | + | 4.679 * -0.0545 | - | 0.327 * 1.0366 | |||||||
= | -2.78 |
* 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 $19,900 Mil. Revenue was 67154 + 66102 + 68614 + 66576 = $268,446 Mil. Gross Profit was 3023 + 3318 + 3428 + 3352 = $13,121 Mil. Total Current Assets was $45,383 Mil. Total Assets was $62,295 Mil. Property, Plant and Equipment(Net PPE) was $3,681 Mil. Depreciation, Depletion and Amortization(DDA) was $690 Mil. Selling, General, & Admin. Expense(SGA) was $10,264 Mil. Total Current Liabilities was $47,201 Mil. Long-Term Debt & Capital Lease Obligation was $6,340 Mil. Net Income was 768 + 368 + -7 + 267 = $1,396 Mil. Non Operating Income was -13 + -107 + -5 + -196 = $-321 Mil. Cash Flow from Operations was -941 + 2887 + 1377 + 1792 = $5,115 Mil. |
Total Receivables was $20,198 Mil. Revenue was 62674 + 59142 + 62599 + 60808 = $245,223 Mil. Gross Profit was 3032 + 3297 + 3151 + 3000 = $12,480 Mil. Total Current Assets was $43,350 Mil. Total Assets was $62,894 Mil. Property, Plant and Equipment(Net PPE) was $4,620 Mil. Depreciation, Depletion and Amortization(DDA) was $888 Mil. Selling, General, & Admin. Expense(SGA) was $8,984 Mil. Total Current Liabilities was $43,835 Mil. Long-Term Debt & Capital Lease Obligation was $8,312 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) |
= | (19900 / 268446) | / | (20198 / 245223) | |
= | 0.07413037 | / | 0.08236585 | |
= | 0.9 |
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) | |
= | (12480 / 245223) | / | (13121 / 268446) | |
= | 0.05089245 | / | 0.04887761 | |
= | 1.0412 |
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 - (45383 + 3681) / 62295) | / | (1 - (43350 + 4620) / 62894) | |
= | 0.21239265 | / | 0.23728814 | |
= | 0.8951 |
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 | |
= | 268446 | / | 245223 | |
= | 1.0947 |
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)) |
= | (888 / (888 + 4620)) | / | (690 / (690 + 3681)) | |
= | 0.16122004 | / | 0.15785861 | |
= | 1.0213 |
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) |
= | (10264 / 268446) | / | (8984 / 245223) | |
= | 0.03823488 | / | 0.03663604 | |
= | 1.0436 |
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) |
= | ((6340 + 47201) / 62295) | / | ((8312 + 43835) / 62894) | |
= | 0.85947508 | / | 0.82912519 | |
= | 1.0366 |
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 | |
= | (1396 - -321 | - | 5115) | / | 62295 | |
= | -0.0545 |
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.
McKesson has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of McKesson's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Rodgers Thomas L | officer: EVP, Chief Strategy & BDO | 6555 NORTH STATE HWY 161 IRVING TX 75039 |
Dunbar Webster Roy | director | 5757 N. GREEN BAY AVENUE MILWAUKEE WI 53209 |
Rutledge Napoleon B Jr | officer: SVP, Controller & CAO | 2999 WILDWOOD PARKWAY ATLANTA GA 30339 |
Flores Nancy | officer: EVP, CIO & CTO | 6555 NORTH STATE HWY 161 IRVING TX 75039 |
Hinton James H. | director | 6555 NORTH STATE HWY. 161 IRVING TX 75039 |
Wilson-thompson Kathleen | director | PO BOX 3599 BATTLE CREEK MI 49016-3599 |
Faber Tracy | officer: EVP & Chief HR Officer | 6555 NORTH STATE HWY 161 IRVING TX 75039 |
Tyler Brian S. | officer: Chief Executive Officer | MCKESSON CORPORATION 6555 STATE HWY 161 IRVING TX 75039 |
Schechter Lori A. | officer: EVP, Chief Legal Officer & GC | MCKESSON CORPORATION 6555 NORTH STATE HWY 161 IRVING TX 75039 |
Vitalone Britt J. | officer: EVP & CFO | MCKESSON CORPORATION 6555 STATE HWY 161 IRVING TX 75039 |
Emerson Kevin | officer: SVP, Controller & CAO | 6555 NORTH STATE HWY 161 IRVING TX 75039 |
Carmona Richard H | director | 1221 BROADWAY OAKLAND CA 94612 |
Mantia Linda Provie | director | C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD MINNEAPOLIS MN 55425 |
Martinez Maria | director | THE LANDMARK @ 1 MARKET STREET SUITE 300 SAN FRANCISCO CA 94105 |
Washington Kenneth E | director | 6555 STATE HWY 161 IRVING TX 75039 |
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