Switch to:
AuRico Gold Inc (NYSE:AUQ)
Beneish M-Score
-3.90 (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.

AuRico Gold Inc has a M-score of -4.02 suggests that the company is not a manipulator.

AUQ' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 42.71
Current: -3.9

-10000000
42.71

During the past 13 years, the highest Beneish M-Score of AuRico Gold Inc was 42.71. The lowest was -10000000.00. And the median was -1.99.


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 AuRico Gold Inc 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 * 0.3059+0.528 * -0.3247+0.404 * 1.0019+0.892 * 1.2792+0.115 * 0.5453
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7321+4.679 * -0.0903-0.327 * 1.0834
=-4.02

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $0.4 Mil.
Revenue was 71.194 + 73.505 + 75.53 + 70.953 = $291.2 Mil.
Gross Profit was -18.423 + -0.759 + -10.371 + -6.608 = $-36.2 Mil.
Total Current Assets was $184.0 Mil.
Total Assets was $2,281.8 Mil.
Property, Plant and Equipment(Net PPE) was $1,638.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $121.5 Mil.
Selling, General & Admin. Expense(SGA) was $25.9 Mil.
Total Current Liabilities was $52.1 Mil.
Long-Term Debt was $308.1 Mil.
Net Income was -108.259 + -15.722 + -16.776 + -28.891 = $-169.6 Mil.
Non Operating Income was -17.325 + 10.995 + -11.042 + -6.639 = $-24.0 Mil.
Cash Flow from Operations was 28.486 + 2.788 + 4.649 + 24.491 = $60.4 Mil.
Accounts Receivable was $1.0 Mil.
Revenue was 50.782 + 54.304 + 57.66 + 64.885 = $227.6 Mil.
Gross Profit was -37.105 + 19.083 + 3.04 + 24.16 = $9.2 Mil.
Total Current Assets was $291.9 Mil.
Total Assets was $2,462.4 Mil.
Property, Plant and Equipment(Net PPE) was $1,676.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $65.5 Mil.
Selling, General & Admin. Expense(SGA) was $27.7 Mil.
Total Current Liabilities was $114.2 Mil.
Long-Term Debt was $244.6 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)
=(0.396 / 291.182) / (1.012 / 227.631)
=0.00135997 / 0.00444579
=0.3059

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)
=(-0.759 / 227.631) / (-18.423 / 291.182)
=0.04031964 / -0.12418693
=-0.3247

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 - (183.954 + 1638.73) / 2281.826) / (1 - (291.939 + 1675.955) / 2462.408)
=0.20121692 / 0.20082537
=1.0019

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
=291.182 / 227.631
=1.2792

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))
=(65.529 / (65.529 + 1675.955)) / (121.468 / (121.468 + 1638.73))
=0.03762825 / 0.06900815
=0.5453

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)
=(25.921 / 291.182) / (27.677 / 227.631)
=0.08901993 / 0.12158713
=0.7321

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)
=((308.064 + 52.121) / 2281.826) / ((244.607 + 114.159) / 2462.408)
=0.15784946 / 0.14569722
=1.0834

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
=(-169.648 - -24.011 - 60.414) / 2281.826
=-0.0903

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.

AuRico Gold Inc has a M-score of -4.02 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.

AuRico Gold Inc Annual Data

Jul05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 10.0290.24432.02810.41130.318339.13150.08420.44380.3059
GMI 12.443210.50260.09950.75361.33620.7841.180110.4238-0.3247
AQI 10.771617.90920.96410.99870.88260.3574.08561.06870.98071.0019
SGI 0193.48192.36721.39760.97311.15220.35231.94951.39121.2792
DEPI 0.30280.03240.47661.1120.99010.869621.51360.28840.31540.5453
SGAI 10.05290.35470.8871.25520.72822.34490.72310.55680.7321
LVGI 0.30031.16780.30421.37020.87941.06861.64570.66321.51241.0834
TATA -0.0462-0.006-0.0772-0.0438-0.0675-0.28410.04160.0145-0.0988-0.0903
M-score 0.51175.882.96-1.95-3.54-4.3735.27-2.211.69-4.02

AuRico Gold Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 8.43080.24290.97250.44440.57730.44380.53980.34320.31220.3059
GMI 0.94891.38511.60412.09771.854710.4238-4.1615-2.0804-1.471-0.3247
AQI 0.98121.06871.23830.97810.97340.98070.78640.99220.96871.0019
SGI 0.45950.6760.95241.88561.84311.39121.1971.11591.12841.2792
DEPI 7.43721.12460.89080.41180.54690.35690.31240.30340.29530.5453
SGAI 2.14561.69621.10430.62450.53030.55680.76110.73810.75180.7321
LVGI 2.05960.66320.67070.6740.65791.51242.06911.42041.36361.0834
TATA 0.03970.0230.0199-0.046-0.0542-0.0988-0.1091-0.0717-0.0809-0.0903
M-score 4.22-3.12-1.96-1.74-1.791.70-6.44-5.12-4.85-4.02
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK