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Yamana Gold Inc (NYSE:AUY)
Beneish M-Score
-3.09 (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 -3.29 suggests that the company is not a manipulator.

AUY' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 524.43
Current: -3.09

-10000000
524.43

During the past 13 years, the highest Beneish M-Score of Yamana Gold Inc was 524.43. The lowest was -10000000.00. And the median was -2.55.


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 * 0.3844+0.528 * 1.1265+0.404 * 0.9444+0.892 * 1.0953+0.115 * 0.8901
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8807+4.679 * -0.0836-0.327 * 0.9553
=-3.29

* 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 + 529.171 = $1,891 Mil.
Gross Profit was 49.7 + 58.4 + 40.2 + 100.253 = $249 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 $119 Mil.
Total Current Liabilities was $534 Mil.
Long-Term Debt was $1,862 Mil.
Net Income was -113 + -7.8 + -151.8 + -335.304 = $-608 Mil.
Non Operating Income was 17.6 + -20.8 + 12.2 + 14.591 = $24 Mil.
Cash Flow from Operations was 77.8 + 121.8 + 3.1 + 183.128 = $386 Mil.
Accounts Receivable was $78 Mil.
Revenue was 501.203 + 450.832 + 353.916 + 420.663 = $1,727 Mil.
Gross Profit was 77.615 + 74.807 + 33.101 + 70.113 = $256 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 $484 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 / 1891.171) / (78.374 / 1726.614)
=0.01744951 / 0.04539173
=0.3844

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 / 1726.614) / (49.7 / 1891.171)
=0.14805625 / 0.13142809
=1.1265

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
=1891.171 / 1726.614
=1.0953

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))
=(484.161 / (484.161 + 11293.321)) / (523.437 / (523.437 + 10810.5))
=0.04110904 / 0.04618316
=0.8901

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)
=(118.732 / 1891.171) / (123.091 / 1726.614)
=0.06278227 / 0.0712904
=0.8807

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
=(-607.904 - 23.591 - 385.828) / 12162.5
=-0.0836

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 -3.29 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 1.33740.61160.25983.03521.46270.72750.80890.57050.60650.906
GMI 0.83210.6651.73980.93560.89920.83021.05471.6351.88461.4574
AQI 0.7150.3830.99961.87570.93151.09980.87860.74371.29091.4215
SGI 3.67544.41531.27071.24641.42551.28841.07520.78860.99590.9944
DEPI 1.47532.22710.39430.76140.80530.86791.05420.95690.87020.6981
SGAI 1.40070.23960.66411.39140.75510.86351.11761.17650.90790.9698
LVGI 0.18251.89790.87250.98350.97971.00061.41371.31681.37141.0616
TATA -0.0157-0.0049-0.015-0.038-0.0179-0.0516-0.0508-0.0963-0.1543-0.2745
M-score 0.19-0.26-2.57-0.34-1.81-2.76-3.00-3.42-3.10-3.49

Yamana Gold Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.53370.57051.06120.84760.60650.57460.38440.906
GMI 1.04671.7632.06112.60991.88461.45791.12651.4574
AQI 0.92650.74370.66521.19781.29091.66980.94441.4215
SGI 0.90140.78860.71880.84160.99591.1671.09530.9945
DEPI 1.03520.95690.93360.85610.87490.85140.89010.6944
SGAI 1.14441.16831.20161.01850.91280.79680.88070.9714
LVGI 1.26391.31681.37141.45941.37141.21880.95531.0616
TATA -0.034-0.0961-0.0964-0.171-0.1556-0.165-0.0836-0.2758
M-score -3.27-3.35-2.86-2.80-3.11-3.04-3.29-3.50
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