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Yamana Gold Inc (NYSE:AUY)
Beneish M-Score
-3.99 (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 -4.01 suggests that the company is not a manipulator.

AUY' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 523.71
Current: -3.99

-10000000
523.71

During the past 13 years, the highest Beneish M-Score of Yamana Gold Inc was 523.71. The lowest was -10000000.00. And the median was -2.62.


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 * 0.5987+0.528 * 1.1009+0.404 * 1.3904+0.892 * 0.9268+0.115 * 0.7825
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0078+4.679 * -0.2626-0.327 * 1.1666
=-4.01

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $28 Mil.
Revenue was 430.3 + 463 + 448.9 + 455 = $1,797 Mil.
Gross Profit was 90 + 46.7 + 49.7 + 58.4 = $245 Mil.
Total Current Assets was $637 Mil.
Total Assets was $9,584 Mil.
Property, Plant and Equipment(Net PPE) was $8,198 Mil.
Depreciation, Depletion and Amortization(DDA) was $512 Mil.
Selling, General & Admin. Expense(SGA) was $110 Mil.
Total Current Liabilities was $505 Mil.
Long-Term Debt was $1,733 Mil.
Net Income was 36.3 + -1842.2 + -113 + -7.8 = $-1,927 Mil.
Non Operating Income was -27.9 + -29.7 + 17.6 + -20.8 = $-61 Mil.
Cash Flow from Operations was 122.9 + 328.4 + 77.8 + 121.8 = $651 Mil.
Accounts Receivable was $50 Mil.
Revenue was 458.1 + 542.9 + 494.4 + 443.8 = $1,939 Mil.
Gross Profit was 38.1 + 87.7 + 84.2 + 80.8 = $291 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 $529 Mil.
Selling, General & Admin. Expense(SGA) was $118 Mil.
Total Current Liabilities was $665 Mil.
Long-Term Debt was $1,817 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)
=(27.8 / 1797.2) / (50.1 / 1939.2)
=0.01546851 / 0.0258354
=0.5987

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)
=(290.8 / 1939.2) / (244.8 / 1797.2)
=0.14995875 / 0.13621189
=1.1009

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 - (637.1 + 8198) / 9584) / (1 - (718.1 + 10990.1) / 12405.4)
=0.07814065 / 0.05620133
=1.3904

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
=1797.2 / 1939.2
=0.9268

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))
=(529.4 / (529.4 + 10990.1)) / (511.5 / (511.5 + 8198))
=0.04595686 / 0.05872897
=0.7825

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)
=(110.4 / 1797.2) / (118.2 / 1939.2)
=0.06142889 / 0.06095297
=1.0078

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)
=((1732.6 + 504.7) / 9584) / ((1817 + 665.3) / 12405.4)
=0.23344115 / 0.20009834
=1.1666

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
=(-1926.7 - -60.8 - 650.9) / 9584
=-0.2626

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 -4.01 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.33740.61160.23393.27151.48910.73650.80890.57050.60690.9055
GMI 0.83210.6651.20451.35150.84540.88311.05471.6351.88441.4575
AQI 0.7150.3830.99962.20591.1590.75720.87210.74641.64611.1106
SGI 3.67544.41531.41161.1221.42551.28841.07520.78860.99590.9944
DEPI 1.47532.22710.36390.80480.80270.8921.05470.95690.85410.7113
SGAI 1.40070.23960.72261.27870.75370.86511.11761.17650.90830.9694
LVGI 0.18251.89790.87251.01020.94741.00751.41371.31661.38051.0547
TATA -0.0157-0.0107-0.0172-0.038-0.0181-0.0516-0.0607-0.0961-0.1542-0.2745
M-score 0.19-0.29-2.770.14-1.72-2.86-3.04-3.42-2.96-3.62

Yamana Gold Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.57051.06130.85440.60690.57460.37860.90540.5987
GMI 1.6352.06112.46761.88431.46821.27531.47351.1009
AQI 0.74640.66521.19781.64611.66980.94441.11061.3904
SGI 0.78860.71880.83490.99581.1671.11220.99460.9268
DEPI 0.95690.93370.86610.85430.8470.86630.71110.7825
SGAI 1.16831.20191.02410.91470.78420.85830.95211.0078
LVGI 1.31661.37141.45941.38051.21880.95531.05471.1666
TATA -0.0966-0.0968-0.1708-0.1541-0.164-0.0849-0.2771-0.2626
M-score -3.42-2.87-2.88-2.97-3.02-3.20-3.62-4.01
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