McKesson Beneish M-Score Historical Data
The historical data trend for McKesson'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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McKesson Annual Data
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Trend |
Mar14 |
Mar15 |
Mar16 |
Mar17 |
Mar18 |
Mar19 |
Mar20 |
Mar21 |
Mar22 |
Mar23 |
| Beneish M-Score |
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-2.64 |
-2.59 |
-2.57 |
-2.77 |
-2.40 |
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McKesson Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.36 |
-2.40 |
-2.34 |
-2.34 |
-2.32 |
Competitive Comparison
For the Medical Distribution subindustry, McKesson'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.
McKesson Beneish M-Score Distribution
For the Medical Distribution industry and Healthcare sector, McKesson's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where McKesson's Beneish M-Score falls into.
McKesson 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 McKesson 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 * 1.0203 | + | 0.528 * 1.1277 | + | 0.404 * 0.9923 | + | 0.892 * 1.1008 | + | 0.115 * 0.9823 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9181 | + | 4.679 * -0.004691 | - | 0.327 * 1.0085 |
| = | -2.32 |
* 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 $23,066 Mil.
Revenue was 80898 + 77215 + 74483 + 68910 = $301,506 Mil.
Gross Profit was 3152 + 3069 + 3022 + 3066 = $12,309 Mil.
Total Current Assets was $47,640 Mil.
Total Assets was $66,512 Mil.
Property, Plant and Equipment(Net PPE) was $3,880 Mil.
Depreciation, Depletion and Amortization(DDA) was $636 Mil.
Selling, General, & Admin. Expense(SGA) was $8,432 Mil.
Total Current Liabilities was $51,661 Mil.
Long-Term Debt & Capital Lease Obligation was $7,046 Mil.
Net Income was 589 + 664 + 958 + 787 = $2,998 Mil.
Non Operating Income was 30 + 0 + -14 + -198 = $-182 Mil.
Cash Flow from Operations was 254 + 965 + -1052 + 3325 = $3,492 Mil.
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Total Receivables was $20,537 Mil.
Revenue was 70490 + 70157 + 67154 + 66102 = $273,903 Mil.
Gross Profit was 3174 + 3095 + 3023 + 3318 = $12,610 Mil.
Total Current Assets was $44,657 Mil.
Total Assets was $62,690 Mil.
Property, Plant and Equipment(Net PPE) was $3,793 Mil.
Depreciation, Depletion and Amortization(DDA) was $609 Mil.
Selling, General, & Admin. Expense(SGA) was $8,343 Mil.
Total Current Liabilities was $48,006 Mil.
Long-Term Debt & Capital Lease Obligation was $6,862 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) |
| = | (23066 / 301506) | / | (20537 / 273903) |
| = | 0.076503 | / | 0.074979 |
| | = | 1.0203 |
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) |
| = | (12610 / 273903) | / | (12309 / 301506) |
| = | 0.046038 | / | 0.040825 |
| | = | 1.1277 |
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 - (47640 + 3880) / 66512) | / | (1 - (44657 + 3793) / 62690) |
| = | 0.225403 | / | 0.227149 |
| | = | 0.9923 |
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 |
| = | 301506 | / | 273903 |
| | = | 1.1008 |
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)) |
| = | (609 / (609 + 3793)) | / | (636 / (636 + 3880)) |
| = | 0.138346 | / | 0.140833 |
| | = | 0.9823 |
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) |
| = | (8432 / 301506) | / | (8343 / 273903) |
| = | 0.027966 | / | 0.03046 |
| | = | 0.9181 |
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) |
| = | ((7046 + 51661) / 66512) | / | ((6862 + 48006) / 62690) |
| = | 0.882653 | / | 0.875227 |
| | = | 1.0085 |
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 |
| = | (2998 - -182 | - | 3492) | / | 66512 |
| | = | -0.004691 |
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.
McKesson has a M-score of -2.32 suggests that the company is unlikely to be a manipulator.
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