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Yamana Gold Inc (NYSE:AUY)
Beneish M-Score
-2.72 (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.

Yamana Gold Inc has a M-score of -2.91 suggests that the company is not a manipulator.

AUY' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 524.42
Current: -2.72

-10000000
524.42

During the past 13 years, the highest Beneish M-Score of Yamana Gold Inc was 524.42. The lowest was -10000000.00. And the median was -2.50.


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 Yamana 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 * 0.5745+0.528 * 1.4579+0.404 * 1.6698+0.892 * 1.1671+0.115 * 1.0902
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5538+4.679 * -0.153-0.327 * 1.2188
=-2.91

* 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 $50 Mil.
Revenue was 458.1 + 529.171 + 501.203 + 450.832 = $1,939 Mil.
Gross Profit was 40.2 + 100.253 + 77.615 + 74.807 = $293 Mil.
Total Current Assets was $718 Mil.
Total Assets was $12,405 Mil.
Property, Plant and Equipment(Net PPE) was $10,990 Mil.
Depreciation, Depletion and Amortization(DDA) was $407 Mil.
Selling, General & Admin. Expense(SGA) was $83 Mil.
Total Current Liabilities was $665 Mil.
Long-Term Debt was $1,817 Mil.
Net Income was -151.8 + -335.304 + -1023.266 + 5.105 = $-1,505 Mil.
Non Operating Income was 12.2 + 14.591 + 20.407 + 0.26 = $47 Mil.
Cash Flow from Operations was 3.1 + 183.128 + 158.932 + 0 = $345 Mil.
Accounts Receivable was $75 Mil.
Revenue was 353.9 + 420.663 + 456.675 + 430.471 = $1,662 Mil.
Gross Profit was 33.1 + 70.113 + 144.01 + 118.646 = $366 Mil.
Total Current Assets was $700 Mil.
Total Assets was $11,375 Mil.
Property, Plant and Equipment(Net PPE) was $10,293 Mil.
Depreciation, Depletion and Amortization(DDA) was $417 Mil.
Selling, General & Admin. Expense(SGA) was $129 Mil.
Total Current Liabilities was $529 Mil.
Long-Term Debt was $1,339 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)
=(50.1 / 1939.306) / (74.717 / 1661.709)
=0.02583398 / 0.04496395
=0.5745

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)
=(100.253 / 1661.709) / (40.2 / 1939.306)
=0.22017634 / 0.15102052
=1.4579

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 - (718.1 + 10990.1) / 12405.4) / (1 - (699.817 + 10292.81) / 11375.496)
=0.05620133 / 0.03365735
=1.6698

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
=1939.306 / 1661.709
=1.1671

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))
=(416.893 / (416.893 + 10292.81)) / (406.927 / (406.927 + 10990.1))
=0.03892666 / 0.03570466
=1.0902

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)
=(83.48 / 1939.306) / (129.156 / 1661.709)
=0.04304633 / 0.0777248
=0.5538

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)
=((1817 + 665.3) / 12405.4) / ((1338.806 + 528.761) / 11375.496)
=0.20009834 / 0.16417456
=1.2188

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
=(-1505.265 - 47.458 - 345.16) / 12405.4
=-0.153

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.

Yamana Gold Inc has a M-score of -2.91 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.

Yamana Gold Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.93491.33740.61160.25982.9451.48910.73650.80890.57050.6065
GMI 1.31940.83210.6651.73980.89470.8840.88311.05471.6351.8846
AQI -4.95395382176E+140.7150.3830.99962.20591.1590.75720.87210.74641.2862
SGI 2.32393.67544.41531.27071.24641.42551.28841.07520.78860.9959
DEPI 1.67221.47532.22710.39430.74290.80270.8921.05470.95690.8702
SGAI 1.35281.40070.23960.66411.39140.75370.86511.11761.17650.9079
LVGI 5.51380.18251.89790.87251.01020.94741.00751.41371.31661.3716
TATA -0.0063-0.0139-0.0049-0.015-0.0361-0.0181-0.0516-0.0607-0.0961-0.1543
M-score -200,139,734,399,068.030.20-0.26-2.57-0.31-1.70-2.86-3.04-3.42-3.11

Yamana Gold Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.80890.65540.30510.53370.57051.06130.84760.60650.5745
GMI 1.05471.11451.16681.24611.6352.06112.60991.88451.4579
AQI 0.87210.87130.86470.92650.74640.66521.19781.28621.6698
SGI 1.07521.02430.99430.90140.78860.71880.84160.99591.1671
DEPI 1.05471.04611.06081.03520.95690.93371.12591.13811.0902
SGAI 1.11761.14921.17221.14441.16831.20190.7160.63950.5538
LVGI 1.41371.07241.27621.26391.31661.37141.45941.37161.2188
TATA -0.0593-0.0552-0.0646-0.0421-0.0966-0.0968-0.1612-0.1435-0.153
M-score -3.04-3.07-3.51-3.20-3.42-2.87-2.67-2.98-2.91
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