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Yamana Gold Inc (NYSE:AUY)
Beneish M-Score
-4.13 (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 -4.11 suggests that the company is not a manipulator.

AUY' s Beneish M-Score Range Over the Past 10 Years
Min: -1310.39   Max: 523.71
Current: -4.13

-1310.39
523.71

During the past 13 years, the highest Beneish M-Score of Yamana Gold Inc was 523.71. The lowest was -1310.39. 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 * 0.4937+0.528 * 0.825+0.404 * 1.4711+0.892 * 1.0128+0.115 * 0.7788
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8925+4.679 * -0.2593-0.327 * 1.1491
=-4.11

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $17 Mil.
Revenue was 464.3 + 466.5 + 430.3 + 543.4 = $1,905 Mil.
Gross Profit was 91 + 63.7 + 90 + 42.7 = $287 Mil.
Total Current Assets was $669 Mil.
Total Assets was $9,565 Mil.
Property, Plant and Equipment(Net PPE) was $8,164 Mil.
Depreciation, Depletion and Amortization(DDA) was $514 Mil.
Selling, General & Admin. Expense(SGA) was $103 Mil.
Total Current Liabilities was $514 Mil.
Long-Term Debt was $1,651 Mil.
Net Income was -11.8 + 34.8 + 36.3 + -1842.2 = $-1,783 Mil.
Non Operating Income was -20.2 + -9.1 + -27.9 + -50.7 = $-108 Mil.
Cash Flow from Operations was 176.4 + 201.9 + 122.9 + 303.5 = $805 Mil.
Accounts Receivable was $33 Mil.
Revenue was 424.4 + 455 + 458.1 + 542.9 = $1,880 Mil.
Gross Profit was 52.1 + 56.2 + 38.1 + 87.7 = $234 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 $523 Mil.
Selling, General & Admin. Expense(SGA) was $114 Mil.
Total Current Liabilities was $534 Mil.
Long-Term Debt was $1,862 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)
=(16.5 / 1904.5) / (33 / 1880.4)
=0.00866369 / 0.01754946
=0.4937

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)
=(234.1 / 1880.4) / (287.4 / 1904.5)
=0.12449479 / 0.15090575
=0.825

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 - (669.2 + 8164.3) / 9564.5) / (1 - (720.1 + 10810.5) / 12162.5)
=0.07642846 / 0.05195478
=1.4711

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
=1904.5 / 1880.4
=1.0128

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))
=(523.1 / (523.1 + 10810.5)) / (514.3 / (514.3 + 8164.3))
=0.0461548 / 0.05926071
=0.7788

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)
=(102.6 / 1904.5) / (113.5 / 1880.4)
=0.05387241 / 0.0603595
=0.8925

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)
=((1651.2 + 513.8) / 9564.5) / ((1861.6 + 534.2) / 12162.5)
=0.22635789 / 0.19698253
=1.1491

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
=(-1782.9 - -107.9 - 804.7) / 9564.5
=-0.2593

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 -4.11 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 local exchange's currency.

Yamana Gold Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.33740.61160.25982.9451.48910.73650.80890.57050.60690.9055
GMI 0.83210.6651.73980.93560.84540.88311.05471.6351.88441.4575
AQI 0.7150.3830.99962.20591.1590.75720.87210.74641.64611.1106
SGI 3.67544.41531.27071.24641.42551.28841.07520.78860.99590.9944
DEPI 1.47532.22710.39430.74290.80270.8921.05470.95690.85410.7113
SGAI 1.40070.23960.66411.39140.75370.86511.11761.17650.90830.9694
LVGI 0.18251.89790.87251.01020.94741.00751.41371.31661.38051.0547
TATA -0.0157-0.0049-0.015-0.038-0.0181-0.0516-0.0607-0.0961-0.1542-0.2745
M-score 0.19-0.26-2.57-0.30-1.72-2.86-3.04-3.42-2.96-3.62

Yamana Gold Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.85440.60690.57460.38350.87850.58070.4937
GMI 2.46761.88431.46821.25791.54921.15310.825
AQI 1.19781.64611.66980.94441.11061.39041.4711
SGI 0.83490.99581.1671.09791.0250.95561.0128
DEPI 0.86610.85430.8470.88040.68740.75480.7788
SGAI 1.02410.91470.78420.8420.9270.98090.8925
LVGI 1.45941.38051.21880.95531.05471.16661.1491
TATA -0.1708-0.1541-0.164-0.0865-0.2744-0.2599-0.2593
M-score -2.88-2.97-3.02-3.22-3.56-3.96-4.11
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