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Pfizer Beneish M-Score

: -2.09 (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 -2.09 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PFE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Med: -2.45   Max: -1.24
Current: -2.09

During the past 13 years, the highest Beneish M-Score of Pfizer was -1.24. The lowest was -3.15. And the median was -2.45.


Pfizer Beneish M-Score Historical Data

The historical data trend for Pfizer'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.

Pfizer 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 -2.37 -2.57 -2.64 -2.42 -2.15

Pfizer 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 -2.39 -2.15 -2.15 -2.09 -

Competitive Comparison

For the Drug Manufacturers - General subindustry, Pfizer'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.

   

Pfizer Beneish M-Score Distribution

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

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



Pfizer 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 Pfizer 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 * 0.6138+0.528 * 1.2716+0.404 * 0.9381+0.892 * 2.0043+0.115 * 1.0035
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5276+4.679 * -0.071-0.327 * 1.0524
=-2.09

* 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 (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $16,342 Mil.
Revenue was 25661 + 23635 + 24094 + 18977 = $92,367 Mil.
Gross Profit was 15677 + 14046 + 14121 + 11928 = $55,772 Mil.
Total Current Assets was $54,420 Mil.
Total Assets was $183,841 Mil.
Property, Plant and Equipment(Net PPE) was $15,109 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,171 Mil.
Selling, General, & Admin. Expense(SGA) was $12,512 Mil.
Total Current Liabilities was $39,268 Mil.
Long-Term Debt & Capital Lease Obligation was $34,416 Mil.
Net Income was 7864 + 3393 + 8146 + 5563 = $24,966 Mil.
Non Operating Income was -586 + 1349 + 1364 + 1301 = $3,428 Mil.
Cash Flow from Operations was 6541 + 5914 + 10829 + 11299 = $34,583 Mil.
Total Receivables was $13,283 Mil.
Revenue was 14516 + 11427 + 10277 + 9864 = $46,084 Mil.
Gross Profit was 10359 + 8716 + 8270 + 8038 = $35,383 Mil.
Total Current Assets was $39,533 Mil.
Total Assets was $158,818 Mil.
Property, Plant and Equipment(Net PPE) was $14,011 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,818 Mil.
Selling, General, & Admin. Expense(SGA) was $11,833 Mil.
Total Current Liabilities was $26,652 Mil.
Long-Term Debt & Capital Lease Obligation was $33,836 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)
=(16342 / 92367) / (13283 / 46084)
=0.17692466 / 0.28823453
=0.6138

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)
=(35383 / 46084) / (55772 / 92367)
=0.76779359 / 0.60380872
=1.2716

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 - (54420 + 15109) / 183841) / (1 - (39533 + 14011) / 158818)
=0.62179818 / 0.66285937
=0.9381

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
=92367 / 46084
=2.0043

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))
=(4818 / (4818 + 14011)) / (5171 / (5171 + 15109))
=0.25588188 / 0.25498028
=1.0035

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)
=(12512 / 92367) / (11833 / 46084)
=0.13545963 / 0.25677025
=0.5276

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)
=((34416 + 39268) / 183841) / ((33836 + 26652) / 158818)
=0.40080287 / 0.38086363
=1.0524

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
=(24966 - 3428 - 34583) / 183841
=-0.071

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.

Pfizer has a M-score of -2.09 suggests that the company is unlikely to be a manipulator.


Pfizer Business Description

Pfizer logo
Address
235 East 42nd Street, New York, NY, USA, 10017
Pfizer is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 vaccine sales). While it historically sold many types of healthcare products and chemicals, now, prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13, cancer drug Ibrance, cardiovascular treatment Eliquis, and immunology drug Xeljanz. Pfizer sells these products globally, with international sales representing close to 50% of its total sales. Within international sales, emerging markets are a major contributor.
Executives
Denton David M officer: Chief Financial Officer & EVP 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Pao William officer: Executive Vice President C/O CORPORATE SECRETARY 235 EAST 42ND STREET NEW YORK NY 10017
Mcdermott Michael officer: Executive Vice President C/O PFIZER INC. CORPORATE SECRETARY 235 EAST 42ND STREET 235 EAST 42ND STREET NY 10017
Malik Aamir officer: Executive Vice President C/O PFIZER INC. CORPORATE SECRETARY 235 EAST 42ND STREET NEW YORK NY 10017
Carapezzi William R Jr officer: Executive Vice President 600 MOUNTAIN AVENUE MURRAY HILL NJ 07921
Sahni Payal officer: Executive Vice President ATTN: PFIZER CORP. SECRETARY 235 EAST 42ND ST. NEW YORK NY 10017
Desmond-hellmann Susan director 513 PARNASSUS AVENUE S126 SAN FRANCISCO CA 94143
Hockfield Susan director GENERAL ELECTRIC COMPANY 41 FARNSWORTH STREET BOSTON MA 02210
Damico Jennifer B. officer: SVP & Controller C/O PFIZER INC. CORPORATE SECRETARY 235 EAST 42ND STREET NEW YORK NY 10017
Quincey James director THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Gottlieb Scott director MOLECULAR INSIGHT PHARMACEUTICALS 160 SECOND STREET CAMBRIDGE MA 02142
Fonseca Lidia officer: Executive Vice President 358 SOUTH MAIN STREET BURLINGTON NC 27215
Goettler Michael officer: Group President 1000 MYLAN BOULEVARD CANONSBURG PA 15317
Rogers Dawn officer: Executive Vice President 235 EAST 42ND STREET NEW YORK NY 10017
Littman Dan R. director ATTN: CORPORATE SECRETARY PFIZER INC. 235 E. 42ND ST NEW YORK NY 10017

Pfizer Headlines

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