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UnitedHealth Group Beneish M-Score

: 0.00 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

UnitedHealth Group has a M-score of signals that the company is a manipulator.

During the past 13 years, the highest Beneish M-Score of UnitedHealth Group was 0.00. The lowest was -10.51. And the median was -2.42.


UnitedHealth Group Beneish M-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

UnitedHealth Group Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.36 -2.25 -2.40 -2.42 -2.47

UnitedHealth Group Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 -2.21 -2.47 -2.31 0.00 0.00

Competitive Comparison
* 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.


UnitedHealth Group Beneish M-Score Distribution

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



UnitedHealth Group 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 UnitedHealth Group 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep19) TTM:Last Year (Sep18) TTM:
Accounts Receivable was USD 10,964 Mil.
Revenue was 59885 + 60013 + 59903 + 58076 = USD 237,877 Mil.
Gross Profit was 14217 + 13231 + 13583 + 13496 = USD 54,527 Mil.
Total Current Assets was USD 43,541 Mil.
Total Assets was USD 173,709 Mil.
Property, Plant and Equipment(Net PPE) was USD 8,501 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 2,639 Mil.
Selling, General, & Admin. Expense(SGA) was USD 0 Mil.
Total Current Liabilities was USD 62,641 Mil.
Long-Term Debt & Capital Lease Obligation was USD 38,507 Mil.
Net Income was 3538 + 3293 + 3467 + 3040 = USD 13,338 Mil.
Non Operating Income was 466 + 582 + 405 + 341 = USD 1,794 Mil.
Cash Flow from Operations was 3150 + 5874 + 3234 + 2396 = USD 14,654 Mil.
Accounts Receivable was USD 10,992 Mil.
Revenue was 56174 + 55731 + 54890 + 51763 = USD 218,558 Mil.
Gross Profit was 13298 + 12833 + 12843 + 12077 = USD 51,051 Mil.
Total Current Assets was USD 38,754 Mil.
Total Assets was USD 151,087 Mil.
Property, Plant and Equipment(Net PPE) was USD 8,042 Mil.
(DDA) was USD 2,369 Mil.
Selling, General, & Admin. Expense(SGA) was USD 0 Mil.
Total Current Liabilities was USD 56,377 Mil.
Long-Term Debt & Capital Lease Obligation was USD 32,053 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)
=(10964 / 237877) / (10992 / 218558)
=0.04609105 / 0.05029329
=

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)
=(51051 / 218558) / (54527 / 237877)
=0.23358102 / 0.22922351
=

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 - (43541 + 8501) / 173709) / (1 - (38754 + 8042) / 151087)
=0.700407 / 0.69027117
=

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
=237877 / 218558
=

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))
=(2369 / (2369 + 8042)) / (2639 / (2639 + 8501))
=0.22754779 / 0.23689408
=

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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)
=(0 / 237877) / (0 / 218558)
=0 / 0
=

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((38507 + 62641) / 173709) / ((32053 + 56377) / 151087)
=0.58228416 / 0.58529192
=

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
=(13338 - 1794 - 14654) / 173709
=-0.0179

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

UnitedHealth Group has a M-score of signals that the company is likely to be a manipulator.


UnitedHealth Group Beneish M-Score Headlines

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