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TMO (Thermo Fisher Scientific) Beneish M-Score : -2.74 (As of Oct. 31, 2024)


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What is Thermo Fisher Scientific 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 -2.74 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TMO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.79   Med: -2.44   Max: -2.03
Current: -2.74

During the past 13 years, the highest Beneish M-Score of Thermo Fisher Scientific was -2.03. The lowest was -2.79. And the median was -2.44.


Thermo Fisher Scientific Beneish M-Score Historical Data

The historical data trend for Thermo Fisher Scientific'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.

Thermo Fisher Scientific Beneish M-Score Chart

Thermo Fisher Scientific Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.51 -2.44 -2.14 -2.46 -2.49

Thermo Fisher Scientific Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial 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 -2.44 -2.49 -2.74 -2.79 -2.74

Competitive Comparison of Thermo Fisher Scientific's Beneish M-Score

For the Diagnostics & Research subindustry, Thermo Fisher Scientific'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.


Thermo Fisher Scientific's Beneish M-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Thermo Fisher Scientific's Beneish M-Score distribution charts can be found below:

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



Thermo Fisher Scientific 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 Thermo Fisher Scientific 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 * 0.8602+0.528 * 0.9626+0.404 * 1.0024+0.892 * 0.9758+0.115 * 1.0685
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8674+4.679 * -0.026892-0.327 * 0.992
=-2.74

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $8,255 Mil.
Revenue was 10598 + 10541 + 10345 + 10886 = $42,370 Mil.
Gross Profit was 4418 + 4435 + 4305 + 4393 = $17,551 Mil.
Total Current Assets was $23,783 Mil.
Total Assets was $100,364 Mil.
Property, Plant and Equipment(Net PPE) was $9,412 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,205 Mil.
Selling, General, & Admin. Expense(SGA) was $7,289 Mil.
Total Current Liabilities was $14,601 Mil.
Long-Term Debt & Capital Lease Obligation was $31,197 Mil.
Net Income was 1630 + 1548 + 1328 + 1630 = $6,136 Mil.
Non Operating Income was -61 + -72 + -19 + -113 = $-265 Mil.
Cash Flow from Operations was 2166 + 1960 + 1251 + 3723 = $9,100 Mil.
Total Receivables was $9,835 Mil.
Revenue was 10574 + 10687 + 10710 + 11450 = $43,421 Mil.
Gross Profit was 4316 + 4251 + 4140 + 4606 = $17,313 Mil.
Total Current Assets was $23,092 Mil.
Total Assets was $97,057 Mil.
Property, Plant and Equipment(Net PPE) was $9,167 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,415 Mil.
Selling, General, & Admin. Expense(SGA) was $8,612 Mil.
Total Current Liabilities was $14,158 Mil.
Long-Term Debt & Capital Lease Obligation was $30,489 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)
=(8255 / 42370) / (9835 / 43421)
=0.194831 / 0.226503
=0.8602

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)
=(17313 / 43421) / (17551 / 42370)
=0.398724 / 0.414232
=0.9626

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 - (23783 + 9412) / 100364) / (1 - (23092 + 9167) / 97057)
=0.669254 / 0.667628
=1.0024

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
=42370 / 43421
=0.9758

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))
=(3415 / (3415 + 9167)) / (3205 / (3205 + 9412))
=0.271419 / 0.254022
=1.0685

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)
=(7289 / 42370) / (8612 / 43421)
=0.172032 / 0.198337
=0.8674

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)
=((31197 + 14601) / 100364) / ((30489 + 14158) / 97057)
=0.456319 / 0.460008
=0.992

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
=(6136 - -265 - 9100) / 100364
=-0.026892

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.

Thermo Fisher Scientific has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.


Thermo Fisher Scientific Beneish M-Score Related Terms

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Thermo Fisher Scientific Business Description

Address
168 Third Avenue, Waltham, MA, USA, 02451
Thermo Fisher Scientific sells scientific instruments and laboratory equipment, diagnostics consumables, and life science reagents. The firm operates through four segments as of end-2023 (revenue figures include some cross-segment revenue): analytical technologies (17% of sales); specialty diagnostic products (10%); life science solutions (23%); and lab products and services, which includes CRO services (54%).
Executives
Marc N Casper officer: Senior Vice President C/O THERMO FISHER SCIENTIFIC, 168 THIRD AVENUE, WALTHAM MA 02451
Lisa P. Britt officer: Sr. VP and Chief HR Officer 168 THIRD AVENUE, WALTHAM MA 02451
Joseph R. Holmes officer: VP & Chief Accounting Officer 168 THIRD AVENUE, WALTHAM MA 02451
Gianluca Pettiti officer: Executive Vice President C/O BUTTERFLY NETWORK, INC., 530 OLD WHITFIELD STREET, GUILFORD CT 06437
Michael A Boxer officer: Sr. VP and Gen. Counsel 168 THIRD AVENUE, WALTHAM MA 02451
Michel Lagarde officer: Senior Vice President 450 LEXINGTON AVE., 31ST FLOOR, NEW YORK NY 10017
Stephen Williamson officer: Sr. VP and CFO 81 WYMAN STREET, WALTHAM MA 02451
Debora L Spar director C/O GOLDMAN, SACHS & CO., 200 WEST STREET, NEW YORK NY 10282
Jennifer M Johnson director C/O FRANKLIN RESOURCES, INC., ONE FRANKLIN PARKWAY, SAN MATEO CA 94403-1906
Jim P Manzi director 81 WYMAN ST, POST OFFICE BOX 9046, WALTHAM MA 02454
Ruby R Chandy director 630 DUNDEE ROAD, SUITE 400, NORTHBROOK IL 60062
Mark P Stevenson officer: Executive Vice President 850 LINCOLN CENTRE DRIVE, FOSTER CITY CA 94404
R. Alexandra Keith director ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Peter E Hornstra officer: Chief Accounting Officer 81 WYMAN ST, POST OFFICE BOX 9046, WALTHAM MA 02454
Syed A. Jafry officer: Sr. Vice President 345 E. MAIN STREET, WARSAW IN 46580