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Yamana Gold Inc (NYSE:AUY)
Beneish M-Score
-3.01 (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 -3.21 suggests that the company is not a manipulator.

AUY' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 411.64
Current: -3.01

-10000000
411.64

During the past 13 years, the highest Beneish M-Score of Yamana Gold Inc was 411.64. The lowest was -10000000.00. And the median was -2.41.


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 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 * 0.3786+0.528 * 1.2641+0.404 * 0.9444+0.892 * 1.1122+0.115 * 0.8663
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8733+4.679 * -0.0846-0.327 * 0.9553
=-3.21

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $33 Mil.
Revenue was 448.9 + 455 + 458.1 + 542.922 = $1,905 Mil.
Gross Profit was 49.7 + 58.4 + 40.2 + 87.676 = $236 Mil.
Total Current Assets was $720 Mil.
Total Assets was $12,163 Mil.
Property, Plant and Equipment(Net PPE) was $10,811 Mil.
Depreciation, Depletion and Amortization(DDA) was $532 Mil.
Selling, General & Admin. Expense(SGA) was $119 Mil.
Total Current Liabilities was $534 Mil.
Long-Term Debt was $1,862 Mil.
Net Income was -113 + -7.8 + -151.8 + -335.273 = $-608 Mil.
Non Operating Income was 17.6 + -20.8 + 12.2 + 25.877 = $35 Mil.
Cash Flow from Operations was 77.8 + 121.8 + 3.1 + 183.271 = $386 Mil.
Accounts Receivable was $78 Mil.
Revenue was 494.4 + 443.8 + 353.9 + 420.663 = $1,713 Mil.
Gross Profit was 84.2 + 80.8 + 33.1 + 70.113 = $268 Mil.
Total Current Assets was $788 Mil.
Total Assets was $12,785 Mil.
Property, Plant and Equipment(Net PPE) was $11,293 Mil.
Depreciation, Depletion and Amortization(DDA) was $478 Mil.
Selling, General & Admin. Expense(SGA) was $123 Mil.
Total Current Liabilities was $643 Mil.
Long-Term Debt was $1,993 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)
=(33 / 1904.922) / (78.374 / 1712.763)
=0.01732354 / 0.04575881
=0.3786

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)
=(58.4 / 1712.763) / (49.7 / 1904.922)
=0.15659668 / 0.12387699
=1.2641

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 - (720.1 + 10810.5) / 12162.5) / (1 - (788.022 + 11293.321) / 12784.66)
=0.05195478 / 0.05501257
=0.9444

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
=1904.922 / 1712.763
=1.1122

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))
=(478.321 / (478.321 + 11293.321)) / (532.019 / (532.019 + 10810.5))
=0.04063333 / 0.04690484
=0.8663

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)
=(119.251 / 1904.922) / (122.775 / 1712.763)
=0.06260151 / 0.07168242
=0.8733

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)
=((1861.6 + 534.2) / 12162.5) / ((1993.156 + 643.054) / 12784.66)
=0.19698253 / 0.20620103
=0.9553

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
=(-607.873 - 34.877 - 385.971) / 12162.5
=-0.0846

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 -3.21 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 1.93491.33740.61160.25984.38550.73650.80890.57050.6065
GMI 1.31940.83210.6651.73980.7910.88311.05471.6351.8846
AQI -4.95395382176E+140.7150.3830.99962.55670.75720.87210.74641.2862
SGI 2.32393.67544.41531.27071.77681.28841.07520.78860.9959
DEPI 1.67221.47532.22710.39430.59630.8921.05470.95690.8702
SGAI 1.35281.40070.23960.66411.04870.86511.11761.17650.9079
LVGI 5.51380.18251.89790.87250.9571.00751.41371.31661.3716
TATA -0.0063-0.0139-0.0049-0.015-0.0181-0.0516-0.0607-0.0961-0.1543
M-score -200,139,734,399,068.030.20-0.26-2.571.72-2.86-3.04-3.42-3.11

Yamana Gold Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.30510.53370.57051.06130.85440.60650.57460.3786
GMI 1.16681.24611.6352.06112.46761.88441.45791.2641
AQI 0.86470.92650.74640.66521.19781.28621.66980.9444
SGI 0.99430.90140.78860.71880.83490.99581.1671.1122
DEPI 1.06081.03520.95690.93370.86610.87030.8470.8663
SGAI 1.17221.14441.16831.20191.02410.91440.79780.8733
LVGI 1.27621.26391.31661.37141.45941.37161.21880.9553
TATA -0.0646-0.0421-0.0966-0.0968-0.1708-0.1542-0.1637-0.0846
M-score -3.51-3.20-3.42-2.87-2.88-3.11-3.03-3.21
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