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First Majestic Silver Corp (NYSE:AG)
Beneish M-Score
-3.74 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

First Majestic Silver Corp has a M-score of -3.84 suggests that the company is not a manipulator.

AG' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -3.74

-10000000
10000000

During the past 13 years, the highest Beneish M-Score of First Majestic Silver Corp was 10000000.00. The lowest was -10000000.00. And the median was -1.65.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 First Majestic Silver Corp 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 * 0.6119+0.528 * 1.3755+0.404 * 0.1203+0.892 * 1.0722+0.115 * 0.7377
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7688+4.679 * -0.192-0.327 * 1.0682
=-3.84

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $18.0 Mil.
Revenue was 66.927 + 65.296 + 58.989 + 76.882 = $268.1 Mil.
Gross Profit was 24.2 + 30.026 + 27.552 + 40.822 = $122.6 Mil.
Total Current Assets was $118.1 Mil.
Total Assets was $890.9 Mil.
Property, Plant and Equipment(Net PPE) was $766.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $53.6 Mil.
Selling, General & Admin. Expense(SGA) was $32.4 Mil.
Total Current Liabilities was $72.0 Mil.
Long-Term Debt was $18.2 Mil.
Net Income was 7.59 + 5.98 + -81.229 + 16.32 = $-51.3 Mil.
Non Operating Income was 10.625 + 2.897 + -5.439 + 1.314 = $9.4 Mil.
Cash Flow from Operations was 27.505 + 19.295 + 25.737 + 37.78 = $110.3 Mil.
Accounts Receivable was $27.4 Mil.
Revenue was 48.372 + 67.07 + 71.007 + 63.581 = $250.0 Mil.
Gross Profit was 24.481 + 42.8 + 47.321 + 42.669 = $157.3 Mil.
Total Current Assets was $145.9 Mil.
Total Assets was $870.3 Mil.
Property, Plant and Equipment(Net PPE) was $672.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.1 Mil.
Selling, General & Admin. Expense(SGA) was $39.2 Mil.
Total Current Liabilities was $65.5 Mil.
Long-Term Debt was $17.0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(17.986 / 268.094) / (27.412 / 250.03)
=0.06708841 / 0.10963484
=0.6119

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)
=(30.026 / 250.03) / (24.2 / 268.094)
=0.62900852 / 0.45730229
=1.3755

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (118.074 + 766.451) / 890.896) / (1 - (145.912 + 672.691) / 870.333)
=0.00715123 / 0.05943702
=0.1203

4. SGI = Sales Growth Index

Ratio of sales 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
=268.094 / 250.03
=1.0722

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(34.062 / (34.062 + 672.691)) / (53.574 / (53.574 + 766.451))
=0.04819506 / 0.06533215
=0.7377

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(32.354 / 268.094) / (39.248 / 250.03)
=0.12068155 / 0.15697316
=0.7688

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((18.227 + 71.987) / 890.896) / ((16.96 + 65.546) / 870.333)
=0.1012621 / 0.0947982
=1.0682

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
=(-51.339 - 9.397 - 110.317) / 890.896
=-0.192

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

First Majestic Silver Corp has a M-score of -3.84 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

First Majestic Silver Corp Annual Data

Jun04Jun05Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.90660.71050.46031.49841.10840.7672
GMI 2.19360.54560.61240.69581.07471.2549
AQI 1.23951.99240.57274.33391.35950.1145
SGI 0.84031.56052.12452.03331.00681.0167
DEPI 1.70961.14920.75820.67951.2390.7488
SGAI 0.96010.53650.93430.7031.46931.1768
LVGI 1.14930.4780.66551.67861.0331.2919
TATA -0.0421-0.0044-0.0787-0.0517-0.0658-0.2078
M-score -2.14-1.84-2.63-0.36-2.56-4.03

First Majestic Silver Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.59672.07612.27251.10841.16760.99420.870.76720.81220.6119
GMI 0.7830.88570.96831.07471.10891.13611.17631.25491.33921.3755
AQI 1.48431.30191.64811.35951.23971.46590.73340.11450.11350.1203
SGI 1.57241.18391.04261.00681.03371.06491.11121.01670.97311.0722
DEPI 0.90320.89931.08121.2391.24271.11590.81620.74880.72630.7377
SGAI 0.80091.05181.29091.50731.56711.4041.21061.14090.93780.7688
LVGI 1.10020.81630.7631.0331.04311.01430.97041.29191.19611.0682
TATA -0.0554-0.0453-0.0321-0.066-0.078-0.0977-0.1142-0.2078-0.1884-0.192
M-score -1.61-1.44-1.14-2.57-2.59-2.69-3.10-4.02-3.82-3.84
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