Astellas Pharma (Astellas Pharma) Beneish M-Score : -2.84 (As of Apr. 26, 2024)

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What is Astellas Pharma Beneish M-Score?

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 -2.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ALPMY' s Beneish M-Score Range Over the Past 10 Years
Min: -4.25 Med: -2.7 Max: -1.58
Current: -2.84

During the past 13 years, the highest Beneish M-Score of Astellas Pharma was -1.58. The lowest was -4.25. And the median was -2.70.

Astellas Pharma Beneish M-Score Historical Data

The historical data trend for Astellas Pharma'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.

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Astellas Pharma Beneish M-Score Chart

Astellas Pharma Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.55

-2.83

-2.71

-2.85

Astellas Pharma Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.61	-2.85	-2.88	-2.78	-2.84

Competitive Comparison of Astellas Pharma's Beneish M-Score

For the Drug Manufacturers - General subindustry, Astellas Pharma'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.

Astellas Pharma's Beneish M-Score Distribution in the Drug Manufacturers Industry

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

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

Astellas Pharma 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 Astellas Pharma for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0452

0.528 * 0.9849

0.404 * 1.292

0.892 * 0.9853

0.115 * 0.8926

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0908

4.679 * -0.067422

0.327 * 1.71

-2.92

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $3,445 Mil.
Revenue was 2930.46 + 2652.42 + 2652.766 + 2650.326 = $10,886 Mil.
Gross Profit was 2403.33 + 2149.116 + 2165.019 + 2184.375 = $8,902 Mil.
Total Current Assets was $7,293 Mil.
Total Assets was $23,397 Mil.
Property, Plant and Equipment(Net PPE) was $2,007 Mil.
Depreciation, Depletion and Amortization(DDA) was $927 Mil.
Selling, General, & Admin. Expense(SGA) was $4,980 Mil.
Total Current Liabilities was $8,013 Mil.
Long-Term Debt & Capital Lease Obligation was $3,221 Mil.
Net Income was 100.798 + -9.868 + 234.362 + -345.081 = $-20 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 357.088 + 249.477 + 86.291 + 864.801 = $1,558 Mil.

Total Receivables was $3,345 Mil.
Revenue was 2980.992 + 2654.82 + 2849.997 + 2562.63 = $11,048 Mil.
Gross Profit was 2429.378 + 2216.663 + 2186.592 + 2065.782 = $8,898 Mil.
Total Current Assets was $7,950 Mil.
Total Assets was $18,634 Mil.
Property, Plant and Equipment(Net PPE) was $1,995 Mil.
Depreciation, Depletion and Amortization(DDA) was $783 Mil.
Selling, General, & Admin. Expense(SGA) was $4,633 Mil.
Total Current Liabilities was $5,232 Mil.
Long-Term Debt & Capital Lease Obligation was $0 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)
	=	(3444.616 / 10885.972)	/	(3344.889 / 11048.439)
	=	0.316427	/	0.302748
	=	1.0452

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)
	=	(8898.415 / 11048.439)	/	(8901.84 / 10885.972)
	=	0.8054	/	0.817735
	=	0.9849

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 - (7293.312 + 2007.404) / 23396.631)	/	(1 - (7950.151 + 1994.637) / 18633.597)
	=	0.602476	/	0.466298
	=	1.292

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
	=	10885.972	/	11048.439
	=	0.9853

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))
	=	(782.976 / (782.976 + 1994.637))	/	(926.533 / (926.533 + 2007.404))
	=	0.281888	/	0.315799
	=	0.8926

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)
	=	(4979.721 / 10885.972)	/	(4633.172 / 11048.439)
	=	0.457444	/	0.419351
	=	1.0908

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)
	=	((3221.275 + 8012.939) / 23396.631)	/	((0 + 5232.228) / 18633.597)
	=	0.480164	/	0.280795
	=	1.71

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
	=	(-19.789 - 0	-	1557.657)	/	23396.631
	=	-0.067422

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.

Astellas Pharma has a M-score of -2.92 suggests that the company is unlikely to be a manipulator.

Astellas Pharma Beneish M-Score Related Terms

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Astellas Pharma (Astellas Pharma) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Astellas Pharma Inc (OTCPK:ALPMY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ALPMF:USA 4503:Mexico 4503:Japan YPHA:Germany

Address

2-5-1, Nihonbashi-Honcho, Chuo-ku, Tokyo, JPN, 103-8411

Website

http://www.astellas.com

Astellas Pharma Inc is a drug manufacturing company that sells pharmaceutical products across the globe. The vast majority of the company's revenue is derived from Japanese markets, followed by the Americas. Royalty income makes up a small percentage of Astellas' overall sales. Its largest therapeutic area by sales composition is oncology, followed by urology and transplantation. The company uses mergers and acquisitions as part of its long-term growth strategy. Astellas enters into strategic partnerships and licensing agreements to strengthen its commercialization platforms.