GURUFOCUS.COM » STOCK LIST » USA » NYSE » Perrigo Co PLC (NYSE:PRGO) » Definitions » Beneish M-Score
Switch to:

Perrigo Co Beneish M-Score

: -2.38 (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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PRGO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.9   Med: -2.5   Max: 0.25
Current: -2.38

During the past 13 years, the highest Beneish M-Score of Perrigo Co was 0.25. The lowest was -3.90. And the median was -2.50.


Perrigo Co Beneish M-Score Historical Data

The historical data trend for Perrigo Co'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.

Perrigo Co Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.63 -2.71 -2.36 -3.22 -2.41

Perrigo Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 -3.23 -2.88 -2.91 -2.41 -2.38

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co'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.

   

Perrigo Co Beneish M-Score Distribution

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

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



Perrigo Co 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 Perrigo Co 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 * 1.0123+0.528 * 1.1104+0.404 * 1.0125+0.892 * 1.0469+0.115 * 1.2566
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9514+4.679 * -0.0125-0.327 * 0.9848
=-2.38

* 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 $679 Mil.
Revenue was 1074.5 + 1104.9 + 1042.7 + 981.1 = $4,203 Mil.
Gross Profit was 337.8 + 362.4 + 336.4 + 349 = $1,386 Mil.
Total Current Assets was $3,936 Mil.
Total Assets was $10,390 Mil.
Property, Plant and Equipment(Net PPE) was $1,042 Mil.
Depreciation, Depletion and Amortization(DDA) was $291 Mil.
Selling, General, & Admin. Expense(SGA) was $1,110 Mil.
Total Current Liabilities was $981 Mil.
Long-Term Debt & Capital Lease Obligation was $3,511 Mil.
Net Income was -2.4 + 9.6 + -58.9 + -57.7 = $-109 Mil.
Non Operating Income was -2.5 + -22.4 + -23 + -167.2 = $-215 Mil.
Cash Flow from Operations was 79.1 + -105.4 + 343.8 + -82.3 = $235 Mil.
Total Receivables was $641 Mil.
Revenue was 1010 + 1053.2 + 1003 + 948.8 = $4,015 Mil.
Gross Profit was 368.4 + 384.4 + 369.7 + 347.2 = $1,470 Mil.
Total Current Assets was $4,489 Mil.
Total Assets was $11,325 Mil.
Property, Plant and Equipment(Net PPE) was $1,010 Mil.
Depreciation, Depletion and Amortization(DDA) was $382 Mil.
Selling, General, & Admin. Expense(SGA) was $1,114 Mil.
Total Current Liabilities was $1,447 Mil.
Long-Term Debt & Capital Lease Obligation was $3,525 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)
=(679.3 / 4203.2) / (641 / 4015)
=0.16161496 / 0.15965131
=1.0123

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)
=(1469.7 / 4015) / (1385.6 / 4203.2)
=0.3660523 / 0.3296536
=1.1104

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 - (3935.5 + 1042) / 10389.5) / (1 - (4488.6 + 1009.7) / 11324.8)
=0.52091053 / 0.51449032
=1.0125

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
=4203.2 / 4015
=1.0469

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))
=(382.1 / (382.1 + 1009.7)) / (291.3 / (291.3 + 1042))
=0.27453657 / 0.21848046
=1.2566

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)
=(1109.5 / 4203.2) / (1114 / 4015)
=0.26396555 / 0.27745953
=0.9514

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)
=((3510.6 + 981.3) / 10389.5) / ((3525.3 + 1446.8) / 11324.8)
=0.43234997 / 0.43904528
=0.9848

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
=(-109.4 - -215.1 - 235.2) / 10389.5
=-0.0125

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.

Perrigo Co has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


Perrigo Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Perrigo Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Perrigo Co Business Description

Perrigo Co logo
Address
The Sharp Building, Hogan Place, Dublin, IRL, D02 TY74
Perrigo Co PLC is a leading private label supplier of generic over the counter (OTC) drugs in the U.S. and Europe. The company's product offerings fall under traditional OTC drug categories (i.e. cough, cold, allergy, pain), in addition to oral care, infant nutrition (formula), and nicotine cessation aids. In addition to private label manufacturing, the company also sells products under its own brands (largely in the skincare and oral-care category). The company became a pure-play in OTC consumer healthcare in 2021, following a series of divestitures over several years (sold off generic prescription topicals, animal health, and active pharmaceutical ingredient business). In late 2021, Perrigo signed an offer to acquire HRA Pharma.
Executives
Ives Alison officer: EVP & Chief Scientific Officer C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010
Hanson Kyle officer: EVP & General Counsel
Bezerra Eduardo Guarita officer: EVP & Chief Financial Officer C/O FRESH DEL MONTE PRODUCE INC. PO BOX 149222 CORAL GABLES FL 33134
Ashford Orlando D director C/O AMERANT BANK 220 ALHAMBRA CR. CORAL GABLES FL 33134
Doyle Katherine C. director 100 ABBOTT PARK ROAD, AP6C-1N D032L ABBOTT PARK IL 60064
Sorota Richard S officer: EVP & President CSCA HARMAN INTERNATIONAL INDUSTRIES, INC. 1101 PENNSYLVANIA AVE, NW, #1010 WASHINGTON DC 20004
Mann Erica L director ONE KELLOGG SQUARE P.O. BOX 3599 BATTLE CREEK MI 49016-3599
Silcock Raymond officer: EVP, Chief Financial Officer 399 JEFFERSON ROAD PARSIPPANY NJ 07054
Willis Robert officer: Acting CHRO C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010
Dillard James E Iii officer: EVP, Chief Scientific Officer 6601 WEST BROAD STREET RICHMOND VA 23230
Kessler Murray S director, officer: CEO 714 GREEN VALLEY ROAD GREENSBORO NC 27408
Smith Jeffrey C director 777 THIRD AVENUE, 18TH FLOOR NEW YORK NY 10017
Roehrhoff Uwe director, officer: CEO C/O PERRIGO COMPANY PLC TREASURY BUILDING, LOWER GRAND CANAL ST DUBLIN L2 D2
Classon Rolf A director C/O CATALENT, INC. 14 SCHOOLHOUSE ROAD SOMERSET NJ 08873
Karaboutis Adriana director C/O BIOGEN IDEC INC. 225 BINNEY ST. CAMBRIDGE MA 02142

Perrigo Co Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)