Covidien Beneish M-Score Historical Data
The historical data trend for Covidien'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.
Covidien Beneish M-Score Chart
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Covidien Annual Data
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Trend |
Sep05 |
Sep06 |
Sep07 |
Sep08 |
Sep09 |
Sep10 |
Sep11 |
Sep12 |
Sep13 |
Sep14 |
| Beneish M-Score |
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-2.65 |
-2.52 |
-2.64 |
-2.77 |
-2.51 |
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Covidien Quarterly Data
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Mar10 |
Jun10 |
Sep10 |
Dec10 |
Mar11 |
Jun11 |
Sep11 |
Dec11 |
Mar12 |
Jun12 |
Sep12 |
Dec12 |
Mar13 |
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Sep13 |
Dec13 |
Mar14 |
Jun14 |
Sep14 |
Dec14 |
| Beneish M-Score |
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-2.81 |
-2.84 |
-2.52 |
-2.51 |
-2.62 |
Competitive Comparison of Covidien's Beneish M-Score
For the Medical Instruments & Supplies subindustry, Covidien'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.
Covidien's Beneish M-Score Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Covidien's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Covidien's Beneish M-Score falls into.
Covidien 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 Covidien 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 * 0.7914 | + | 0.528 * 0.9899 | + | 0.404 * 1.054 | + | 0.892 * 1.0527 | + | 0.115 * 1.0894 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0469 | + | 4.679 * -0.018898 | - | 0.327 * 0.9155 |
| = | -2.67 |
* 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 (Dec14) TTM: | Last Year (Dec13) TTM: |
Total Receivables was €1,177 Mil.
Revenue was 2178.346 + 2121.584 + 1978.368 + 1878.354 = €8,157 Mil.
Gross Profit was 1333.284 + 1289.712 + 1165.824 + 1097.514 = €4,886 Mil.
Total Current Assets was €4,531 Mil.
Total Assets was €16,719 Mil.
Property, Plant and Equipment(Net PPE) was €1,609 Mil.
Depreciation, Depletion and Amortization(DDA) was €454 Mil.
Selling, General, & Admin. Expense(SGA) was €2,791 Mil.
Total Current Liabilities was €2,364 Mil.
Long-Term Debt & Capital Lease Obligation was €3,285 Mil.
Net Income was 414.421 + 401.192 + 225.216 + 318.843 = €1,360 Mil.
Non Operating Income was -16.22 + -51.216 + -10.304 + 48.441 = €-29 Mil.
Cash Flow from Operations was 365.761 + 601.4 + 180.32 + 557.433 = €1,705 Mil.
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Total Receivables was €1,413 Mil.
Revenue was 1926.47 + 1914.88 + 1954.124 + 1953.16 = €7,749 Mil.
Gross Profit was 1140.99 + 1112.276 + 1162.014 + 1179.616 = €4,595 Mil.
Total Current Assets was €4,263 Mil.
Total Assets was €14,322 Mil.
Property, Plant and Equipment(Net PPE) was €1,461 Mil.
Depreciation, Depletion and Amortization(DDA) was €461 Mil.
Selling, General, & Admin. Expense(SGA) was €2,532 Mil.
Total Current Liabilities was €1,624 Mil.
Long-Term Debt & Capital Lease Obligation was €3,662 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) |
| = | (1176.761 / 8156.652) | / | (1412.55 / 7748.634) |
| = | 0.14427 | / | 0.182297 |
| | = | 0.7914 |
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) |
| = | (4594.896 / 7748.634) | / | (4886.334 / 8156.652) |
| = | 0.592994 | / | 0.599061 |
| | = | 0.9899 |
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 - (4531.057 + 1609.024) / 16718.765) | / | (1 - (4263.2 + 1460.73) / 14321.87) |
| = | 0.632743 | / | 0.600336 |
| | = | 1.054 |
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 |
| = | 8156.652 | / | 7748.634 |
| | = | 1.0527 |
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)) |
| = | (461.014 / (461.014 + 1460.73)) | / | (454.392 / (454.392 + 1609.024)) |
| = | 0.239894 | / | 0.220213 |
| | = | 1.0894 |
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) |
| = | (2790.899 / 8156.652) | / | (2532.414 / 7748.634) |
| = | 0.342162 | / | 0.326821 |
| | = | 1.0469 |
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) |
| = | ((3285.361 + 2364.065) / 16718.765) | / | ((3661.68 + 1624.25) / 14321.87) |
| = | 0.337909 | / | 0.369081 |
| | = | 0.9155 |
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 |
| = | (1359.672 - -29.299 | - | 1704.914) | / | 16718.765 |
| | = | -0.018898 |
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.
Covidien has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.
Covidien (FRA:6COP) Business Description
Traded in Other Exchanges
N/A
Address
Covidien PLC formerly known as Covidien Ltd. was incorporated in Bermuda in 2000 as a wholly-owned subsidiary of Tyco International Ltd. In June 2009, Covidien plc announced that one of its subsidiaries has completed the acquisition of VNUS Medical Technologies, Inc. In September 2009, the Company completed the acquisition of Power Medical Interventions Inc. In November 2009, the Company completed the acquisition of Aspect Medical Systems Inc. The Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Its products are found in almost every hospital in the United States. Its mission is to create and deliver innovative healthcare solutions, developed in ethical collaboration with medical professionals. It operates through two segments: Medical Devices and Medical Supplies. The Medical Devices segment includes the development, manufacture and sale of endomechanical instruments, energy devices, soft tissue repair products, vascular products, oximetry and monitoring products, airway and ventilation products, and other medical products. The Medical Supplies segment includes the development, manufacture and sale of nursing care products, medical surgical products, SharpSafety products and original equipment manufacturer products. Competitors of Medical Devices segment include diversified healthcare companies, such as Johnson & Johnson, Boston Scientific, Baxter and C.R. Bard. Its Nursing Care products include: Curity and Kerlix and Medical Surgical products include: Medi-Trace. The Company holds more than 13,000 patents and have over 10,500 patent applications pending in the United States and in certain other countries that relate to aspects of the technology used in many of its products. The Company is subject to numerous federal, state and local environmental protection and health and safety laws and regulations both within and outside the United States.
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