AbbVie (WBO:ABBV) Beneish M-Score : -2.87 (As of Apr. 29, 2024)

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What is AbbVie 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:ABBV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11 Med: -2.7 Max: -1.68
Current: -2.87

During the past 13 years, the highest Beneish M-Score of AbbVie was -1.68. The lowest was -3.11. And the median was -2.70.

AbbVie Beneish M-Score Historical Data

The historical data trend for AbbVie'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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AbbVie Beneish M-Score Chart

AbbVie Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.74

-1.68

-2.61

-2.73

-2.87

AbbVie 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															-2.73	-2.82	-2.81	-2.84	-2.87

Competitive Comparison of AbbVie's Beneish M-Score

For the Drug Manufacturers - General subindustry, AbbVie'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.

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

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

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

AbbVie 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 AbbVie 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 * 1.0573

0.528 * 1.1208

0.404 * 0.9455

0.892 * 0.9106

0.115 * 0.9933

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9031

4.679 * -0.093197

0.327 * 1.0462

-2.90

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €10,229 Mil.
Revenue was 13114.017 + 13049.599 + 12797.395 + 11418.15 = €50,379 Mil.
Gross Profit was 7883.449 + 6973.154 + 8883.875 + 7695.226 = €31,436 Mil.
Total Current Assets was €30,263 Mil.
Total Assets was €123,530 Mil.
Property, Plant and Equipment(Net PPE) was €4,575 Mil.
Depreciation, Depletion and Amortization(DDA) was €8,070 Mil.
Selling, General, & Admin. Expense(SGA) was €11,942 Mil.
Total Current Liabilities was €34,700 Mil.
Long-Term Debt & Capital Lease Obligation was €47,862 Mil.
Net Income was 753.774 + 1665.986 + 1868.152 + 223.226 = €4,511 Mil.
Non Operating Income was -1730.379 + 3.748 + -1595.867 + -1857.726 = €-5,180 Mil.
Cash Flow from Operations was 4358.501 + 7096.838 + 5832.437 + 3916.262 = €21,204 Mil.

Total Receivables was €10,624 Mil.
Revenue was 14274.224 + 14960.12 + 13795.518 + 12292.504 = €55,322 Mil.
Gross Profit was 10337.744 + 9887.9 + 9850.698 + 8613.288 = €38,690 Mil.
Total Current Assets was €26,869 Mil.
Total Assets was €131,032 Mil.
Property, Plant and Equipment(Net PPE) was €4,659 Mil.
Depreciation, Depletion and Amortization(DDA) was €8,069 Mil.
Selling, General, & Admin. Expense(SGA) was €14,522 Mil.
Total Current Liabilities was €27,884 Mil.
Long-Term Debt & Capital Lease Obligation was €55,823 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)
	=	(10229.135 / 50379.161)	/	(10623.776 / 55322.366)
	=	0.203043	/	0.192034
	=	1.0573

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)
	=	(38689.63 / 55322.366)	/	(31435.704 / 50379.161)
	=	0.699349	/	0.623982
	=	1.1208

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 - (30262.834 + 4574.913) / 123529.987)	/	(1 - (26869.072 + 4658.64) / 131031.92)
	=	0.717981	/	0.759389
	=	0.9455

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
	=	50379.161	/	55322.366
	=	0.9106

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))
	=	(8068.574 / (8068.574 + 4658.64))	/	(8070.485 / (8070.485 + 4574.913))
	=	0.633962	/	0.638215
	=	0.9933

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)
	=	(11942.335 / 50379.161)	/	(14521.756 / 55322.366)
	=	0.237049	/	0.262493
	=	0.9031

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)
	=	((47861.898 + 34700.197) / 123529.987)	/	((55823.44 + 27883.872) / 131031.92)
	=	0.668357	/	0.638831
	=	1.0462

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
	=	(4511.138 - -5180.224	-	21204.038)	/	123529.987
	=	-0.093197

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.

AbbVie has a M-score of -2.90 suggests that the company is unlikely to be a manipulator.

AbbVie Beneish M-Score Related Terms

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AbbVie (WBO:ABBV) Business Description

Industry

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Traded in Other Exchanges

ABBV:USA ABBV:Mexico 1ABBV:Italy 4ABd:UK 0QCV:UK 4AB:Germany ABBV:Canada ABBV34:Brazil

Address

1 North Waukegan Road, North Chicago, IL, USA, 60064-6400

Website

http://www.abbvieinvestor.com

AbbVie is a pharmaceutical firm with a strong exposure to immunology and oncology. The firm's top drug, Humira, represents close to half of the company's current profits. The company was spun off from Abbott in early 2013. The recent acquisition of Allergan adds several new drugs in aesthetics and women's health.