Organon Beneish M-Score Historical Data
The historical data trend for Organon'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.
Organon Beneish M-Score Chart
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Organon Annual Data
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Trend |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
-3.65 |
-2.33 |
-2.16 |
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Organon Quarterly Data
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Dec18 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-2.35 |
-2.30 |
-2.33 |
-2.16 |
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Competitive Comparison of Organon's Beneish M-Score
For the Drug Manufacturers - General subindustry, Organon'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.
Organon's Beneish M-Score Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Organon's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Organon's Beneish M-Score falls into.
Organon 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 Organon 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 * 1.1618 | + | 0.528 * 1.0501 | + | 0.404 * 0.9631 | + | 0.892 * 0.9886 | + | 0.115 * 1.0346 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0935 | + | 4.679 * 0.029031 | - | 0.327 * 0.9286 |
| = | -2.18 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was €1,599 Mil.
Revenue was 1465.366 + 1423.303 + 1484.184 + 1436.492 = €5,809 Mil.
Gross Profit was 839.055 + 849.859 + 893.464 + 894.772 = €3,477 Mil.
Total Current Assets was €4,134 Mil.
Total Assets was €11,057 Mil.
Property, Plant and Equipment(Net PPE) was €1,085 Mil.
Depreciation, Depletion and Amortization(DDA) was €219 Mil.
Selling, General, & Admin. Expense(SGA) was €1,757 Mil.
Total Current Liabilities was €2,676 Mil.
Long-Term Debt & Capital Lease Obligation was €8,025 Mil.
Net Income was 500.682 + 54.346 + 223.366 + 165.318 = €944 Mil.
Non Operating Income was -72.443 + -16.866 + -2.769 + -25.218 = €-117 Mil.
Cash Flow from Operations was 364.049 + 244.557 + 24.921 + 106.476 = €740 Mil.
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Total Receivables was €1,392 Mil.
Revenue was 1401.84 + 1552.37 + 1499.41 + 1422.836 = €5,876 Mil.
Gross Profit was 841.104 + 995.86 + 943.162 + 913.448 = €3,694 Mil.
Total Current Assets was €3,711 Mil.
Total Assets was €10,342 Mil.
Property, Plant and Equipment(Net PPE) was €961 Mil.
Depreciation, Depletion and Amortization(DDA) was €202 Mil.
Selling, General, & Admin. Expense(SGA) was €1,625 Mil.
Total Current Liabilities was €2,371 Mil.
Long-Term Debt & Capital Lease Obligation was €8,406 Mil.
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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) |
| = | (1599.248 / 5809.345) | / | (1392.4 / 5876.456) |
| = | 0.275289 | / | 0.236946 |
| | = | 1.1618 |
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) |
| = | (3693.574 / 5876.456) | / | (3477.15 / 5809.345) |
| = | 0.628538 | / | 0.598544 |
| | = | 1.0501 |
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 - (4133.836 + 1084.811) / 11057.186) | / | (1 - (3710.864 + 960.992) / 10341.52) |
| = | 0.528031 | / | 0.548243 |
| | = | 0.9631 |
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 |
| = | 5809.345 | / | 5876.456 |
| | = | 0.9886 |
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)) |
| = | (202.082 / (202.082 + 960.992)) | / | (218.949 / (218.949 + 1084.811)) |
| = | 0.173748 | / | 0.167937 |
| | = | 1.0346 |
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) |
| = | (1756.742 / 5809.345) | / | (1625.106 / 5876.456) |
| = | 0.302399 | / | 0.276545 |
| | = | 1.0935 |
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) |
| = | ((8024.667 + 2675.806) / 11057.186) | / | ((8406.32 + 2371.328) / 10341.52) |
| = | 0.967739 | / | 1.042173 |
| | = | 0.9286 |
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 |
| = | (943.712 - -117.296 | - | 740.003) | / | 11057.186 |
| | = | 0.029031 |
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.
Organon has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.
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