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Yamana Gold Inc (NYSE:AUY)
Beneish M-Score
-3.37 (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 -3.49 suggests that the company is not a manipulator.

AUY' s 10-Year Beneish M-Score Range
Min: -37.18   Max: 358.85
Current: -3.37

-37.18
358.85

During the past 13 years, the highest Beneish M-Score of Yamana Gold Inc was 358.85. The lowest was -37.18. And the median was -2.38.


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 * 0.488+0.528 * 2.4814+0.404 * 1.0628+0.892 * 0.8798+0.115 * 0.6356
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2401+4.679 * -0.2075-0.327 * 1.5543
=-3.49

* 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 (Sep13) TTM:
Accounts Receivable was $47 Mil.
Revenue was 529.171 + 501.203 + 353.916 + 420.663 = $1,805 Mil.
Gross Profit was 100.253 + 77.615 + 33.101 + 70.113 = $281 Mil.
Total Current Assets was $784 Mil.
Total Assets was $12,539 Mil.
Property, Plant and Equipment(Net PPE) was $11,143 Mil.
Depreciation, Depletion and Amortization(DDA) was $492 Mil.
Selling, General & Admin. Expense(SGA) was $115 Mil.
Total Current Liabilities was $728 Mil.
Long-Term Debt was $2,025 Mil.
Net Income was -335.304 + -1023.266 + -29.608 + -583.894 = $-1,972 Mil.
Non Operating Income was 14.591 + 20.407 + 3.135 + 25.903 = $64 Mil.
Cash Flow from Operations was 183.128 + 158.932 + 38.977 + 184.842 = $566 Mil.
Accounts Receivable was $110 Mil.
Revenue was 456.675 + 430.471 + 534.873 + 629.505 = $2,052 Mil.
Gross Profit was 144.01 + 118.646 + 208.009 + 322.083 = $793 Mil.
Total Current Assets was $788 Mil.
Total Assets was $12,026 Mil.
Property, Plant and Equipment(Net PPE) was $10,686 Mil.
Depreciation, Depletion and Amortization(DDA) was $295 Mil.
Selling, General & Admin. Expense(SGA) was $106 Mil.
Total Current Liabilities was $615 Mil.
Long-Term Debt was $1,084 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)
=(47.172 / 1804.953) / (109.869 / 2051.524)
=0.02613475 / 0.05355482
=0.488

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)
=(77.615 / 2051.524) / (100.253 / 1804.953)
=0.38641907 / 0.15572815
=2.4814

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 - (784.007 + 11142.809) / 12538.853) / (1 - (788.333 + 10685.515) / 12026.181)
=0.04881124 / 0.04592755
=1.0628

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
=1804.953 / 2051.524
=0.8798

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))
=(295.429 / (295.429 + 10685.515)) / (492.498 / (492.498 + 11142.809))
=0.02690379 / 0.04232789
=0.6356

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)
=(115.323 / 1804.953) / (105.696 / 2051.524)
=0.06389252 / 0.05152072
=1.2401

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)
=((2025.383 + 728.108) / 12538.853) / ((1084.352 + 614.79) / 12026.181)
=0.21959672 / 0.14128691
=1.5543

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
=(-1972.072 - 64.036 - 565.879) / 12538.853
=-0.2075

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 -3.49 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Sep14Dec14
DSRI 0.95481.34130.80890.65540.30510.53370.57051.06121.5990.488
GMI 1.00651.04461.05471.11451.16681.24611.6352.06112.24262.4814
AQI 0.72030.78720.87210.87130.86470.92650.74640.66521.20761.0628
SGI 1.08881.06371.07521.02430.99430.90140.78860.71880.78510.8798
DEPI 0.96811.03641.05471.04611.38551.35421.24011.19610.69330.6356
SGAI 1.02641.10371.11761.14920.87770.84240.83880.8491.31351.2401
LVGI 1.31541.41421.41371.07241.27621.26391.31661.37141.52881.5543
TATA -0.0493-0.0546-0.0593-0.0552-0.0484-0.026-0.0796-0.0799-0.1647-0.2075
M-score -2.89-2.58-3.04-3.07-3.34-3.04-3.25-2.70-2.41-3.49
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