Abbvie Beneish M Score

ABBV
 Stock
  

USD 142.38  1.09  0.77%   

This module uses fundamental data of Abbvie to approximate the value of its Beneish M Score. Abbvie M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Abbvie Piotroski F Score and Abbvie Altman Z Score analysis.
  
Abbvie Debt Current is fairly stable at the moment as compared to the past year. Abbvie reported Debt Current of 12.49 Billion in 2021. Long Term Debt to Equity is likely to climb to 4.56 in 2022, whereas Total Debt is likely to drop slightly above 62.5 B in 2022. Abbvie Quick Ratio is fairly stable at the moment as compared to the past year. Abbvie reported Quick Ratio of 0.56 in 2021. Asset Turnover is likely to climb to 0.43 in 2022, whereas Receivables Turnover is likely to drop 5.49 in 2022.
At this time, it appears that Abbvie Inc is an unlikely manipulator. The earnings manipulation may begin if Abbvie's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Abbvie executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Abbvie's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.81
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.02Focus
Asset Quality0.94Focus
Expense Coverage1.05Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.05Focus
Depreciation Resistance0.93Focus
Net Sales Growth0.83Focus
Financial Leverage Condition1.02Focus

Abbvie Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Abbvie's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues46.4 B56.2 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense10.7 B12.3 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations18 B22.8 B
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion9.2 B8.5 B
Significantly Up
Increasing
Slightly volatile
Total Assets116 B146.5 B
Significantly Down
Increasing
Slightly volatile
Investments370.5 M361 M
Fairly Up
Decreasing
Stable
Investments Current86.2 M84 M
Fairly Up
Decreasing
Slightly volatile
Investments Non Current284.3 M277 M
Fairly Up
Increasing
Stable
Property Plant and Equipment Net4.4 B5.1 B
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables8.4 B10 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities105.4 B131.1 B
Significantly Down
Increasing
Slightly volatile
Current Assets26.7 B27.9 B
Sufficiently Down
Increasing
Slightly volatile
Assets Non Current128 B118.6 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities38 B35.2 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current78.2 B95.9 B
Significantly Down
Increasing
Slightly volatile
Total Debt62.5 B76.7 B
Significantly Down
Increasing
Slightly volatile
Debt Current13.5 B12.5 B
Significantly Up
Increasing
Slightly volatile
Debt Non Current53.6 B64.2 B
Fairly Down
Increasing
Slightly volatile
Operating Income14.4 B17.9 B
Significantly Down
Increasing
Slightly volatile
Gross Margin0.680.69
Fairly Down
Decreasing
Slightly volatile

Abbvie Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Abbvie's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Abbvie in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Abbvie's degree of accounting gimmicks and manipulations.

About Abbvie Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

9.19 Billion

Abbvie Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Abbvie reported Depreciation Amortization and Accretion of 8.52 Billion in 2021

Abbvie Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Abbvie. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues28.22 B32.75 B33.27 B45.8 B56.2 B46.38 B
Total Assets70.79 B59.35 B89.11 B150.56 B146.53 B116 B
Current Assets21.22 B16.95 B49.52 B24.17 B27.93 B26.75 B
Assets Non Current49.56 B42.41 B39.6 B126.39 B118.6 B127.96 B
Total Liabilities65.69 B67.8 B97.29 B137.47 B131.09 B105.4 B
Current Liabilities16.64 B17.24 B15.59 B28.66 B35.19 B37.97 B
Total Debt37.37 B40.31 B66.73 B86.06 B76.68 B62.52 B
Debt Current6.42 B5.31 B3.75 B8.5 B12.49 B13.48 B
Debt Non Current30.95 B35 B62.98 B77.55 B64.19 B53.56 B
Operating Income9.54 B6.38 B12.98 B11.36 B17.92 B14.36 B
Investments2.58 B2.19 B93 M323 M361 M370.5 M
Investments Current1.32 B486 M772 M30 M84 M86.21 M
Gross Margin0.80.770.750.660.690.68

Abbvie ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Abbvie's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Abbvie's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Abbvie Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Abbvie Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Abbvie using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Abbvie Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois. Abbvie operates under Drug ManufacturersGeneral classification in the United States and is traded on New York Stock Exchange. It employs 50000 people.

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Our tools can tell you how much better you can do entering a position in Abbvie without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Abbvie

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Abbvie position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Abbvie will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Abbvie could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Abbvie when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Abbvie - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Abbvie Inc to buy it.
The correlation of Abbvie is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Abbvie moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Abbvie Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Abbvie can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Abbvie Piotroski F Score and Abbvie Altman Z Score analysis. Note that the Abbvie Inc information on this page should be used as a complementary analysis to other Abbvie's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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When running Abbvie Inc price analysis, check to measure Abbvie's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Abbvie is operating at the current time. Most of Abbvie's value examination focuses on studying past and present price action to predict the probability of Abbvie's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Abbvie's price. Additionally, you may evaluate how the addition of Abbvie to your portfolios can decrease your overall portfolio volatility.
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Is Abbvie's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abbvie. If investors know Abbvie will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abbvie listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.21
Market Capitalization
251.5 B
Quarterly Revenue Growth YOY
0.045
Return On Assets
0.0814
Return On Equity
0.93
The market value of Abbvie Inc is measured differently than its book value, which is the value of Abbvie that is recorded on the company's balance sheet. Investors also form their own opinion of Abbvie's value that differs from its market value or its book value, called intrinsic value, which is Abbvie's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abbvie's market value can be influenced by many factors that don't directly affect Abbvie's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abbvie's value and its price as these two are different measures arrived at by different means. Investors typically determine Abbvie value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbvie's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.