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CI (The Cigna Group) Beneish M-Score : -7.20 (As of Oct. 31, 2024)


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What is The Cigna Group Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -7.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CI' s Beneish M-Score Range Over the Past 10 Years
Min: -7.2   Med: -3.78   Max: -2.6
Current: -7.2

During the past 13 years, the highest Beneish M-Score of The Cigna Group was -2.60. The lowest was -7.20. And the median was -3.78.


The Cigna 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 The Cigna 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 * 1.0898+0.528 * 1+0.404 * 1.0031+0.892 * 1.1611+0.115 * 0.9436
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9645+4.679 * -1.054784-0.327 * 1.036
=-7.20

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $29,706 Mil.
Revenue was 60475 + 55419 + 51080 + 49034 = $216,008 Mil.
Gross Profit was 60475 + 55419 + 51080 + 49034 = $216,008 Mil.
Total Current Assets was $0 Mil.
Total Assets was $155,446 Mil.
Property, Plant and Equipment(Net PPE) was $3,551 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,010 Mil.
Selling, General, & Admin. Expense(SGA) was $15,239 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $30,175 Mil.
Net Income was 1548 + -277 + 1029 + 1408 = $3,708 Mil.
Non Operating Income was 45101 + 42036 + 36604 + 34531 = $158,272 Mil.
Cash Flow from Operations was 265 + 4840 + 1467 + 2826 = $9,398 Mil.
Total Receivables was $23,476 Mil.
Revenue was 48612 + 46461 + 45759 + 45199 = $186,031 Mil.
Gross Profit was 48612 + 46461 + 45759 + 45199 = $186,031 Mil.
Total Current Assets was $0 Mil.
Total Assets was $150,054 Mil.
Property, Plant and Equipment(Net PPE) was $3,884 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,965 Mil.
Selling, General, & Admin. Expense(SGA) was $13,607 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $28,115 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)
=(29706 / 216008) / (23476 / 186031)
=0.137523 / 0.126194
=1.0898

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)
=(186031 / 186031) / (216008 / 216008)
=1 / 1
=1

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 - (0 + 3551) / 155446) / (1 - (0 + 3884) / 150054)
=0.977156 / 0.974116
=1.0031

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
=216008 / 186031
=1.1611

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))
=(2965 / (2965 + 3884)) / (3010 / (3010 + 3551))
=0.43291 / 0.458772
=0.9436

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)
=(15239 / 216008) / (13607 / 186031)
=0.070548 / 0.073144
=0.9645

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)
=((30175 + 0) / 155446) / ((28115 + 0) / 150054)
=0.194119 / 0.187366
=1.036

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
=(3708 - 158272 - 9398) / 155446
=-1.054784

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.

The Cigna Group has a M-score of -7.20 suggests that the company is unlikely to be a manipulator.


The Cigna Group Beneish M-Score Related Terms

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The Cigna Group Business Description

Address
900 Cottage Grove Road, Bloomfield, CT, USA, 06002
Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense, and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, and the company operates mostly in the US with 18 million US medical members covered as of December 2023.
Executives
Delaney William J Iii director 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Michael W Triplett officer: President, US Markets 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Nicole S Jones officer: EVP, General Counsel 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL18Y, PHILADELPHIA PA 19192
Brian C Evanko officer: President Government Business 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Elder Granger director 5176 S. LEWISTON WAY, CENTENNIAL CO 80015
Noelle K Eder officer: EVP, CIO 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Agoglia Hoeltzel Mary T officer: VP & Chief Accounting Officer 1601 CHESTNUT STREET, TWO LIBERTY PLACE, PHILADELPHIA PA 19192
David Cordani director, officer: President & CEO THE CIGNA GROUP, 900 COTTAGE GROVE ROAD, BLOOMFIELD CT 06002
Eric P Palmer officer: EVP, Chief Financial Officer 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Cynthia Ryan officer: EVP, CHRO 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Z, PHILADELPHIA PA 19192
Everett Neville officer: EVP, Strategy and Business Dev ONE EXPRESS WAY, ST. LOUIS MO 63121
Paul A Sanford officer: EVP Operations 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Z, PHILADELPHIA PA 19192
Phillip Ozuah director 30 HUDSON STREET, FLOOR 33, JERSEY CITY NJ 07302
Donna F Zarcone director C/O HARLEY DAVIDSON, 3700 W. JUNEAU AVE, MILWAUKEE WI 53208
Jason D Sadler officer: Pres., International Markets 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192