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Yamana Gold Inc (NYSE:AUY)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

AUY' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 606.65
Current: -2.86

-10000000
606.65

During the past 13 years, the highest Beneish M-Score of Yamana Gold Inc was 606.65. The lowest was -10000000.00. And the median was -2.32.


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 * 1.0612+0.528 * 2.0611+0.404 * 0.6652+0.892 * 0.7188+0.115 * 0.9336
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2016+4.679 * -0.0964-0.327 * 1.3714
=-2.86

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $75 Mil.
Revenue was 353.916 + 420.663 + 456.675 + 430.471 = $1,662 Mil.
Gross Profit was 33.101 + 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.
Net Income was -29.608 + -583.894 + 43.45 + -7.898 = $-578 Mil.
Non Operating Income was 3.135 + 0 + 0 + -3.211 = $-0 Mil.
Cash Flow from Operations was 38.977 + 184.842 + 99.078 + 195.418 = $518 Mil.
Accounts Receivable was $98 Mil.
Revenue was 534.873 + 629.505 + 611.807 + 535.705 = $2,312 Mil.
Gross Profit was 208.009 + 322.083 + 279.158 + 239.896 = $1,049 Mil.
Total Current Assets was $814 Mil.
Total Assets was $11,807 Mil.
Property, Plant and Equipment(Net PPE) was $10,395 Mil.
Depreciation, Depletion and Amortization(DDA) was $392 Mil.
Selling, General & Admin. Expense(SGA) was $150 Mil.
Total Current Liabilities was $553 Mil.
Long-Term Debt was $861 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)
=(74.717 / 1661.725) / (97.952 / 2311.89)
=0.04496352 / 0.0423688
=1.0612

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)
=(70.113 / 2311.89) / (33.101 / 1661.725)
=0.45380446 / 0.22017482
=2.0611

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 - (699.817 + 10292.81) / 11375.496) / (1 - (814.16 + 10395.348) / 11806.864)
=0.03365735 / 0.05059396
=0.6652

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
=1661.725 / 2311.89
=0.7188

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))
=(392.091 / (392.091 + 10395.348)) / (416.943 / (416.943 + 10292.81))
=0.036347 / 0.03893115
=0.9336

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)
=(129.124 / 1661.725) / (149.506 / 2311.89)
=0.07770479 / 0.0646683
=1.2016

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)
=((1338.806 + 528.761) / 11375.496) / ((860.509 + 552.914) / 11806.864)
=0.16417456 / 0.11971197
=1.3714

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
=(-577.95 - -0.076 - 518.315) / 11375.496
=-0.0964

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 -2.86 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

Feb04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 6.41042.33091.19260.56940.25983.03521.46270.75120.79110.5795
GMI 0.74981.31940.83210.6651.73980.89470.8840.88311.05471.635
AQI -0-4.95395382176E+140.7150.3830.99962.20591.1590.75720.87210.7437
SGI 3.39232.32393.67544.41531.27071.24641.42551.28841.07520.7886
DEPI 4.61621.67221.47532.22710.39430.74290.80270.8921.05470.9569
SGAI 1.06061.35281.40070.23960.66411.39140.75370.86511.11761.1765
LVGI 0.12715.51380.18251.89790.87251.01020.94741.00751.41371.3168
TATA -0.0411-0.0063-0.0139-0.0049-0.015-0.0361-0.0181-0.0516-0.0607-0.0963
M-score 4.59-200,139,734,399,067.660.07-0.30-2.57-0.23-1.72-2.84-3.06-3.41

Yamana Gold Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.75120.53180.95481.31090.79110.65540.30510.53370.57951.0612
GMI 0.88310.93731.00651.04461.05471.11451.16681.24611.6352.0611
AQI 0.75720.75910.72030.78720.87210.87130.86470.92650.74370.6652
SGI 1.28841.24251.08881.06371.07521.02430.99430.90140.78860.7188
DEPI 0.8920.91920.96811.03641.05471.04611.06081.03520.95690.9336
SGAI 0.78780.83991.02641.10371.11761.14921.17221.14441.16831.2016
LVGI 1.00751.38951.31541.41421.41371.07241.27621.26391.31681.3714
TATA -0.0511-0.0528-0.0493-0.0546-0.0593-0.0552-0.0646-0.0437-0.096-0.0964
M-score -2.83-3.18-2.89-2.60-3.05-3.07-3.51-3.21-3.41-2.86
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