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WBA (Walgreens Boots Alliance) Beneish M-Score : -2.34 (As of Oct. 31, 2024)


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What is Walgreens Boots Alliance 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 -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Med: -2.64   Max: -1.7
Current: -2.34

During the past 13 years, the highest Beneish M-Score of Walgreens Boots Alliance was -1.70. The lowest was -3.11. And the median was -2.64.


Walgreens Boots Alliance Beneish M-Score Historical Data

The historical data trend for Walgreens Boots Alliance'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.

Walgreens Boots Alliance Beneish M-Score Chart

Walgreens Boots Alliance Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.11 -2.26 -2.69 -2.72 -2.34

Walgreens Boots Alliance Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 -2.72 -2.22 -2.12 -2.20 -2.34

Competitive Comparison of Walgreens Boots Alliance's Beneish M-Score

For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance'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.


Walgreens Boots Alliance's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's Beneish M-Score distribution charts can be found below:

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



Walgreens Boots Alliance 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 Walgreens Boots Alliance 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 * 1.0242+0.528 * 1.0836+0.404 * 0.8118+0.892 * 1.0617+0.115 * 0.8418
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7742+4.679 * 0.030764-0.327 * 1.2166
=-2.34

* 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 (Aug24) TTM:Last Year (Aug23) TTM:
Total Receivables was $5,851 Mil.
Revenue was 37547 + 36351 + 37052 + 36707 = $147,657 Mil.
Gross Profit was 6253 + 6460 + 7041 + 6771 = $26,525 Mil.
Total Current Assets was $18,335 Mil.
Total Assets was $81,037 Mil.
Property, Plant and Equipment(Net PPE) was $30,108 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,459 Mil.
Selling, General, & Admin. Expense(SGA) was $28,113 Mil.
Total Current Liabilities was $26,953 Mil.
Long-Term Debt & Capital Lease Obligation was $28,965 Mil.
Net Income was -3005 + 344 + -5908 + -67 = $-8,636 Mil.
Non Operating Income was -172 + 298 + -12095 + -178 = $-12,147 Mil.
Cash Flow from Operations was 1332 + 604 + -637 + -281 = $1,018 Mil.
Total Receivables was $5,381 Mil.
Revenue was 35422 + 35415 + 34862 + 33382 = $139,081 Mil.
Gross Profit was 6476 + 6588 + 7055 + 6953 = $27,072 Mil.
Total Current Assets was $15,503 Mil.
Total Assets was $96,628 Mil.
Property, Plant and Equipment(Net PPE) was $33,253 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,257 Mil.
Selling, General, & Admin. Expense(SGA) was $34,205 Mil.
Total Current Liabilities was $24,535 Mil.
Long-Term Debt & Capital Lease Obligation was $30,269 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)
=(5851 / 147657) / (5381 / 139081)
=0.039626 / 0.03869
=1.0242

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)
=(27072 / 139081) / (26525 / 147657)
=0.194649 / 0.179639
=1.0836

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 - (18335 + 30108) / 81037) / (1 - (15503 + 33253) / 96628)
=0.402211 / 0.495426
=0.8118

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
=147657 / 139081
=1.0617

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))
=(2257 / (2257 + 33253)) / (2459 / (2459 + 30108))
=0.06356 / 0.075506
=0.8418

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)
=(28113 / 147657) / (34205 / 139081)
=0.190394 / 0.245936
=0.7742

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)
=((28965 + 26953) / 81037) / ((30269 + 24535) / 96628)
=0.69003 / 0.567165
=1.2166

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
=(-8636 - -12147 - 1018) / 81037
=0.030764

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.

Walgreens Boots Alliance has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.


Walgreens Boots Alliance Beneish M-Score Related Terms

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Walgreens Boots Alliance Business Description

Address
108 Wilmot Road, Deerfield, IL, USA, 60015
Walgreens Boots Alliance is one of the largest retail pharmacy chains in the US, with over 8,500 locations. Nearly three quarters of Americans live within five miles of a Walgreens location. Roughly two thirds of revenue is generated from prescription drug sales; Walgreens makes up 20% of total prescription revenue in the US. Walgreens also generates sales from retail products (general wellness consumables and its own branded merchandise), European drug wholesale, and healthcare. With more locations incorporating additional services like Health Corner and Village Medical, Walgreens creates an omnichannel experience for patients and positions itself as a one-stop healthcare provider.
Executives
Inderpal S Bhandari director C/O WALGREENS BOOTS ALLIANCE, INC., DEERFIELD IL 60015
Manmohan Mahajan officer: SVP, Global Controller and CAO C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Nancy M Schlichting director 200 WILMOT ROAD, DEERFIELD IL 60015
Timothy C Wentworth director, officer: Chief Executive Officer C/O EXPRESS SCRIPTS HOLDING COMPANY, ONE EXPRESS WAY, ST. LOUIS MO 63121
Richard P. Gates officer: SVP, Chief Pharmacy Officer C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Neal J. Sample officer: EVP, Chief Information Officer 200 VESEY STREET, NEW YORK NY 10285
Todd Heckman officer: Interim Global Controller C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Polen Thomas E Jr director BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
John Patrick Driscoll officer: EVP, Pres. U.S. Healthcare C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Rosalind G Brewer director, officer: CEO C/O MOLSON COORS BREWING COMPANY, 1225 17TH STREET, SUITE 3200, DENVER CO 80202
Kevin M. Ban officer: EVP, Chief Medical Officer C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Bryan C Hanson director ZIMMER BIOMET HOLDINGS, 345 E. MAIN STREET, WARSAW IN 46580
Henry Lee Cooper officer: EVP, Pres. Walgreens Pharmacy C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Tracey D Brown officer: SVP, Pres., Walgreens Retail 675 AVENUE OF THE AMERICAS, 6TH FLOOR, NEW YORK NY 10010
Steven J Shulman director 1564 NE EXPRESSWAY, ATTN: BJ PURCELL, ATLANTA GA 30329

Walgreens Boots Alliance Headlines

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