Switch to:
AuRico Gold Inc (NYSE:AUQ)
Beneish M-Score
-2.85 (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 -3.05 suggests that the company is not a manipulator.

AUQ' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -2.85

-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 -1.59.


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 * 0.4099+0.528 * 1.1126+0.404 * 1.0733+0.892 * 1.222+0.115 * 0.6625
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5735+4.679 * -0.092-0.327 * 0.736
=-3.05

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $19.1 Mil.
Revenue was 65.359 + 71.194 + 73.505 + 75.53 = $285.6 Mil.
Gross Profit was 5.84 + -18.423 + -0.759 + -10.371 = $-23.7 Mil.
Total Current Assets was $186.8 Mil.
Total Assets was $2,285.0 Mil.
Property, Plant and Equipment(Net PPE) was $1,655.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $143.1 Mil.
Selling, General & Admin. Expense(SGA) was $21.4 Mil.
Total Current Liabilities was $57.4 Mil.
Long-Term Debt was $306.2 Mil.
Net Income was -35.258 + -108.259 + -15.722 + -16.776 = $-176.0 Mil.
Non Operating Income was 1.673 + -17.325 + 10.995 + -11.042 = $-15.7 Mil.
Cash Flow from Operations was 14.032 + 28.486 + 2.788 + 4.649 = $50.0 Mil.
Accounts Receivable was $38.1 Mil.
Revenue was 70.953 + 50.782 + 54.304 + 57.66 = $233.7 Mil.
Gross Profit was -6.608 + -37.105 + 19.083 + 3.04 = $-21.6 Mil.
Total Current Assets was $482.6 Mil.
Total Assets was $2,653.7 Mil.
Property, Plant and Equipment(Net PPE) was $1,692.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $94.1 Mil.
Selling, General & Admin. Expense(SGA) was $30.6 Mil.
Total Current Liabilities was $266.3 Mil.
Long-Term Debt was $307.5 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)
=(19.073 / 285.588) / (38.078 / 233.699)
=0.06678502 / 0.16293608
=0.4099

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)
=(-18.423 / 233.699) / (5.84 / 285.588)
=-0.09238379 / -0.0830322
=1.1126

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 - (186.821 + 1655.39) / 2284.981) / (1 - (482.551 + 1692.015) / 2653.653)
=0.19377404 / 0.18053868
=1.0733

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
=285.588 / 233.699
=1.222

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))
=(94.122 / (94.122 + 1692.015)) / (143.053 / (143.053 + 1655.39))
=0.05269585 / 0.07954269
=0.6625

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)
=(21.415 / 285.588) / (30.554 / 233.699)
=0.07498564 / 0.13074082
=0.5735

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)
=((306.22 + 57.442) / 2284.981) / ((307.501 + 266.29) / 2653.653)
=0.15915318 / 0.21622684
=0.736

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
=(-176.015 - -15.699 - 49.955) / 2284.981
=-0.092

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 -3.05 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.24290.97250.44440.57730.44380.53980.34320.31220.30590.4099
GMI 1.38511.60412.09771.854710.4238-4.1615-2.0804-1.471-0.32471.1126
AQI 1.06871.23830.97810.97340.98070.78640.99220.96871.00191.0733
SGI 0.6760.95241.88561.84311.39121.1971.11591.12841.27921.222
DEPI 1.12460.89080.41180.54690.35690.2210.21470.20890.44850.6625
SGAI 1.69621.10430.62450.53030.55680.76110.73810.75180.73210.5735
LVGI 0.66320.67070.6740.65791.51242.06911.42041.36361.08340.736
TATA 0.0230.0199-0.046-0.0542-0.0988-0.106-0.0682-0.0774-0.0866-0.092
M-score -3.12-1.96-1.74-1.791.70-6.43-5.11-4.84-4.02-3.05
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)

GuruFocus Premium Plus Membership

FEEDBACK