Switch to:

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1381

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1386
AuRico Gold Inc (NYSE:AUQ)
Beneish M-Score
-5.03 (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 -5.13 suggests that the company is not a manipulator.

AUQ' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -5.03

-10000000
10000000

During the past 13 years, the highest Beneish M-Score of AuRico Gold Inc was 10000000.00. The lowest was -10000000.00. And the median was -1.78.


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 * 0.3432+0.528 * -2.0804+0.404 * 0.9922+0.892 * 1.1159+0.115 * 0.4464
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7381+4.679 * -0.0775-0.327 * 1.4204
=-5.13

* 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 $21.7 Mil.
Revenue was 75.53 + 70.953 + 50.782 + 54.304 = $251.6 Mil.
Gross Profit was -10.371 + -6.608 + -37.105 + 19.083 = $-35.0 Mil.
Total Current Assets was $258.9 Mil.
Total Assets was $2,431.6 Mil.
Property, Plant and Equipment(Net PPE) was $1,698.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $65.5 Mil.
Selling, General & Admin. Expense(SGA) was $28.5 Mil.
Total Current Liabilities was $71.1 Mil.
Long-Term Debt was $307.3 Mil.
Net Income was -16.776 + -28.891 + -106.412 + 14.859 = $-137.2 Mil.
Non Operating Income was -11.042 + -6.639 + 3.239 + 0.34 = $-14.1 Mil.
Cash Flow from Operations was 4.649 + 24.491 + 11.954 + 24.338 = $65.4 Mil.
Accounts Receivable was $56.8 Mil.
Revenue was 57.66 + 64.885 + 63.119 + 39.772 = $225.4 Mil.
Gross Profit was 3.04 + 24.16 + 25.216 + 12.837 = $65.3 Mil.
Total Current Assets was $352.6 Mil.
Total Assets was $2,483.1 Mil.
Property, Plant and Equipment(Net PPE) was $1,641.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.7 Mil.
Selling, General & Admin. Expense(SGA) was $34.6 Mil.
Total Current Liabilities was $100.6 Mil.
Long-Term Debt was $171.4 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)
=(21.736 / 251.569) / (56.753 / 225.436)
=0.08640174 / 0.25174772
=0.3432

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)
=(-6.608 / 225.436) / (-10.371 / 251.569)
=0.28945244 / -0.13913082
=-2.0804

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 - (258.921 + 1697.966) / 2431.585) / (1 - (352.566 + 1641.948) / 2483.092)
=0.19522164 / 0.19676194
=0.9922

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
=251.569 / 225.436
=1.1159

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))
=(27.694 / (27.694 + 1641.948)) / (65.529 / (65.529 + 1697.966))
=0.01658679 / 0.0371586
=0.4464

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)
=(28.474 / 251.569) / (34.571 / 225.436)
=0.11318565 / 0.15335173
=0.7381

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)
=((307.253 + 71.139) / 2431.585) / ((171.435 + 100.611) / 2483.092)
=0.15561537 / 0.10955937
=1.4204

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
=(-137.22 - -14.102 - 65.432) / 2431.585
=-0.0775

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 -5.13 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

Jul05Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.827210.05860.33620.81790.94351.237510.21860.48080.6797
GMI 112.443210.50260.09950.75361.33620.7841.180110.4238
AQI 0.8850.51471.66260.96410.99870.80460.39164.08561.06870.9807
SGI 2.4403055.18562.36721.39760.97311.15220.35231.94951.3912
DEPI 0.48071.34380.1070.47661.1120.96890.888621.51360.28840.3154
SGAI 1.128310.03250.35470.8871.27160.71882.34490.72310.5568
LVGI 0.48873.77763.8890.30421.37020.87941.06861.64570.66321.5124
TATA -0.0462-0.0332-0.006-0.0772-0.0438-0.0675-0.28410.04160.0145-0.1046
M-score -1.53-4.5945.113.05-3.06-3.09-3.518.67-1.841.88

AuRico Gold Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 7.346810.57668.43081.38660.97250.44440.57730.67970.53980.3432
GMI 0.74040.96141.1731.28581.4761.80591.526810.4238-4.1615-2.0804
AQI 4.23050.90530.98121.06871.23830.97810.97340.98070.78640.9922
SGI 0.80740.3860.45950.6760.95241.88561.84311.39121.1971.1159
DEPI 5.31743.73599.50230.9850.61451.13680.4860.49710.7190.4464
SGAI 1.21442.10912.14561.69621.10430.62450.53030.55680.76110.7381
LVGI 1.72271.78262.05960.66320.67070.6740.65791.51242.06911.4204
TATA 0.05170.08020.03970.0230.0199-0.046-0.0542-0.1046-0.1145-0.0775
M-score 4.825.974.58-2.14-2.06-1.81-1.971.90-6.42-5.13
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)
Free 7-day Trial
FEEDBACK