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AuRico Gold Inc (NYSE:AUQ)
Beneish M-Score
-4.81 (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 -4.88 suggests that the company is not a manipulator.

AUQ' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -4.81

-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 -1.41.


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 * 0.3122+0.528 * -1.471+0.404 * 0.9687+0.892 * 1.1284+0.115 * 0.2953
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7518+4.679 * -0.0868-0.327 * 1.3636
=-4.88

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $19.4 Mil.
Revenue was 73.505 + 75.53 + 70.953 + 50.782 = $270.8 Mil.
Gross Profit was -0.759 + -10.371 + -6.608 + -37.105 = $-54.8 Mil.
Total Current Assets was $213.1 Mil.
Total Assets was $2,398.0 Mil.
Property, Plant and Equipment(Net PPE) was $1,715.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $65.5 Mil.
Selling, General & Admin. Expense(SGA) was $27.5 Mil.
Total Current Liabilities was $48.3 Mil.
Long-Term Debt was $309.0 Mil.
Net Income was -15.722 + -16.776 + -28.891 + -106.412 = $-167.8 Mil.
Non Operating Income was 10.995 + -11.042 + -6.639 + 3.239 = $-3.4 Mil.
Cash Flow from Operations was 2.788 + 4.649 + 24.491 + 11.954 = $43.9 Mil.
Accounts Receivable was $55.2 Mil.
Revenue was 54.304 + 57.66 + 64.885 + 63.119 = $240.0 Mil.
Gross Profit was 19.083 + 3.04 + 24.16 + 25.216 = $71.5 Mil.
Total Current Assets was $287.0 Mil.
Total Assets was $2,495.7 Mil.
Property, Plant and Equipment(Net PPE) was $1,704.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.7 Mil.
Selling, General & Admin. Expense(SGA) was $32.4 Mil.
Total Current Liabilities was $105.4 Mil.
Long-Term Debt was $167.3 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)
=(19.431 / 270.77) / (55.16 / 239.968)
=0.07176201 / 0.22986398
=0.3122

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)
=(-10.371 / 239.968) / (-0.759 / 270.77)
=0.29795223 / -0.2025446
=-1.471

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 - (213.054 + 1715.6) / 2398.041) / (1 - (287.025 + 1704.357) / 2495.659)
=0.19573769 / 0.20206166
=0.9687

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
=270.77 / 239.968
=1.1284

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))
=(18.723 / (18.723 + 1704.357)) / (65.529 / (65.529 + 1715.6))
=0.01086601 / 0.03679071
=0.2953

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)
=(27.492 / 270.77) / (32.407 / 239.968)
=0.10153267 / 0.13504717
=0.7518

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)
=((308.982 + 48.284) / 2398.041) / ((167.275 + 105.395) / 2495.659)
=0.14898244 / 0.10925772
=1.3636

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
=(-167.801 - -3.447 - 43.882) / 2398.041
=-0.0868

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 -4.88 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

Jul04Jul05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 110.0290.24432.02810.41130.318339.13150.08420.4438
GMI 112.443210.50260.09950.75361.33620.7841.180110.4238
AQI 12.171410.771617.90920.96410.99870.88260.3574.08561.06870.9807
SGI 00193.48192.36721.39760.97311.15220.35231.94951.3912
DEPI 0.630.30280.03240.47661.1120.99010.869621.51360.28840.3154
SGAI 110.05290.35470.8871.25520.72822.34490.72310.5568
LVGI 0.61440.30031.16780.30421.37020.87941.06861.64570.66321.5124
TATA -0.0424-0.0462-0.006-0.0772-0.0438-0.0675-0.28410.04160.0145-0.1046
M-score 1.030.51175.882.96-1.95-3.54-4.3735.27-2.211.67

AuRico Gold Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 10.57668.43080.24290.97250.44440.57730.44380.53980.34320.3122
GMI 0.82760.94891.38511.60412.09771.854710.4238-4.1615-2.0804-1.471
AQI 0.90530.98121.06871.23830.97810.97340.98070.78640.99220.9687
SGI 0.3860.45950.6760.95241.88561.84311.39121.1971.11591.1284
DEPI 12.64947.43721.12460.89080.41180.54690.35690.31240.30340.2953
SGAI 2.10912.14561.69621.10430.62450.53030.55680.76110.73810.7518
LVGI 1.78262.05960.66320.67070.6740.65791.51242.06911.42041.3636
TATA 0.08020.03970.0230.0199-0.046-0.0542-0.1046-0.1145-0.0775-0.0868
M-score 6.924.22-3.12-1.96-1.74-1.791.67-6.46-5.15-4.88
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