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Perrigo Co (Perrigo Co) Beneish M-Score

: -2.63 (As of Today)
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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 -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PRGO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22   Med: -2.45   Max: -1.84
Current: -2.63

During the past 13 years, the highest Beneish M-Score of Perrigo Co was -1.84. The lowest was -3.22. And the median was -2.45.


Perrigo Co Beneish M-Score Historical Data

The historical data trend for Perrigo Co'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.

* Premium members only.

Perrigo Co Annual Data
Trend Jun14 Jun15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.36 -3.22 -2.41 -2.47 -2.63

Perrigo Co 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.47 -2.50 -2.69 -2.67 -2.63

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co'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.


Perrigo Co Beneish M-Score Distribution

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

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



Perrigo Co 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 Perrigo Co 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 * 1.0145+0.528 * 0.9058+0.404 * 0.9797+0.892 * 1.0458+0.115 * 0.9276
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0073+4.679 * -0.027745-0.327 * 1.0262
=-2.63

* 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 $740 Mil.
Revenue was 1156.9 + 1123.8 + 1193.1 + 1181.7 = $4,656 Mil.
Gross Profit was 427.3 + 411.2 + 428 + 413.8 = $1,680 Mil.
Total Current Assets was $2,833 Mil.
Total Assets was $10,809 Mil.
Property, Plant and Equipment(Net PPE) was $1,100 Mil.
Depreciation, Depletion and Amortization(DDA) was $360 Mil.
Selling, General, & Admin. Expense(SGA) was $1,275 Mil.
Total Current Liabilities was $1,586 Mil.
Long-Term Debt & Capital Lease Obligation was $3,633 Mil.
Net Income was -32.3 + 14.2 + 8.4 + -3 = $-13 Mil.
Non Operating Income was -102.5 + -14.9 + 3 + -3.9 = $-118 Mil.
Cash Flow from Operations was 208.7 + 124.5 + 52.9 + 19.4 = $406 Mil.
Total Receivables was $697 Mil.
Revenue was 1155.3 + 1100.2 + 1121.7 + 1074.5 = $4,452 Mil.
Gross Profit was 382.6 + 362.9 + 372.1 + 337.8 = $1,455 Mil.
Total Current Assets was $2,720 Mil.
Total Assets was $11,017 Mil.
Property, Plant and Equipment(Net PPE) was $1,143 Mil.
Depreciation, Depletion and Amortization(DDA) was $339 Mil.
Selling, General, & Admin. Expense(SGA) was $1,210 Mil.
Total Current Liabilities was $1,114 Mil.
Long-Term Debt & Capital Lease Obligation was $4,070 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)
=(739.6 / 4655.5) / (697.1 / 4451.7)
=0.158866 / 0.156592
=1.0145

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)
=(1455.4 / 4451.7) / (1680.3 / 4655.5)
=0.326931 / 0.360928
=0.9058

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 - (2832.9 + 1100) / 10809.1) / (1 - (2719.9 + 1143.4) / 11017.3)
=0.636149 / 0.649342
=0.9797

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
=4655.5 / 4451.7
=1.0458

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))
=(338.6 / (338.6 + 1143.4)) / (359.5 / (359.5 + 1100))
=0.228475 / 0.246317
=0.9276

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)
=(1274.6 / 4655.5) / (1210 / 4451.7)
=0.273784 / 0.271806
=1.0073

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)
=((3632.8 + 1586.3) / 10809.1) / ((4070.4 + 1113.6) / 11017.3)
=0.482843 / 0.470533
=1.0262

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
=(-12.7 - -118.3 - 405.5) / 10809.1
=-0.027745

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.

Perrigo Co has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.


Perrigo Co Beneish M-Score Related Terms

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Perrigo Co (Perrigo Co) Business Description

Traded in Other Exchanges
Address
The Sharp Building, Hogan Place, Dublin, IRL, D02 TY74
Perrigo is one of the largest consumer health companies in the world. Since 2018, Perrigo divested its animal health and generic pharmaceuticals businesses to solely focus on consumer self-care. In North America (two thirds of total sales), the firm's product mix is anchored in private-label consumer health goods, which are sold to major retailers like Walmart, Amazon, Costco, and CVS. Perrigo also plays in Europe, Australia, and parts of Asia where it primarily generates revenue through its national brands, including Compeed, Solpadeine, Coldrex, and ellaOne.
Executives
Robert Willis officer: Acting CHRO C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Alison Ives officer: EVP & Chief Scientific Officer C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Eduardo Guarita Bezerra officer: EVP & Chief Financial Officer C/O FRESH DEL MONTE PRODUCE INC., PO BOX 149222, CORAL GABLES FL 33134
Patrick Lockwood-taylor director, officer: CEO C/O PERRIGO COMPANY PLC, 430 MONROE AVE NW, GRAND RAPIDS MI 49503
Julia M Brown director C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001
Triona Schmelter officer: EVP & President CSCA 2021 SPRING ROAD, SUITE 600, OAK BROOK IL 60523
Geoffrey M. Parker director 15 RIORDAN PLACE, MENLO PARK CA 94025
Svend Andersen director C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Murray S Kessler director, officer: CEO 714 GREEN VALLEY ROAD, GREENSBORO NC 27408
Thomas Farrington officer: Senior VP and CIO 4012 W. CANTERBURY CT., NEQUON WI 53092
Dillard James E Iii officer: EVP, Chief Scientific Officer 6601 WEST BROAD STREET, RICHMOND VA 23230
Ronald Craig Janish officer: EVP, Global Op. & Supply Chain PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Grainne Quinn officer: EVP, Chief Medical Officer PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Albert Manzone director C/O MERISANT, AVENUE JEAN-JACQUES ROUSSEAU 7, NEUCHATEL V8 CH-2000
Kyle Hanson officer: EVP & General Counsel