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Yamana Gold Inc (NYSE:AUY)
Beneish M-Score
-2.61 (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 -2.66 suggests that the company is not a manipulator.

AUY' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 524.42
Current: -2.61

-10000000
524.42

During the past 13 years, the highest Beneish M-Score of Yamana Gold Inc was 524.42. The lowest was -10000000.00. And the median was -2.37.


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 * 0.8476+0.528 * 2.6099+0.404 * 1.1978+0.892 * 0.8416+0.115 * 1.1257
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7157+4.679 * -0.1594-0.327 * 1.4594
=-2.66

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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 $364 Mil.
Selling, General & Admin. Expense(SGA) was $86 Mil.
Total Current Liabilities was $643 Mil.
Long-Term Debt was $1,993 Mil.
Net Income was -1023.266 + 5.105 + -29.608 + -583.894 = $-1,632 Mil.
Non Operating Income was 20.407 + 0.26 + 3.135 + 0 = $24 Mil.
Cash Flow from Operations was 158.932 + 0 + 38.977 + 184.842 = $383 Mil.
Accounts Receivable was $110 Mil.
Revenue was 456.675 + 430.471 + 534.873 + 629.505 = $2,052 Mil.
Gross Profit was 144.01 + 118.646 + 208.009 + 322.083 = $793 Mil.
Total Current Assets was $788 Mil.
Total Assets was $12,026 Mil.
Property, Plant and Equipment(Net PPE) was $10,686 Mil.
Depreciation, Depletion and Amortization(DDA) was $390 Mil.
Selling, General & Admin. Expense(SGA) was $144 Mil.
Total Current Liabilities was $615 Mil.
Long-Term Debt was $1,084 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)
=(78.374 / 1726.614) / (109.869 / 2051.524)
=0.04539173 / 0.05355482
=0.8476

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)
=(74.807 / 2051.524) / (77.615 / 1726.614)
=0.38641907 / 0.14805625
=2.6099

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 - (788.022 + 11293.321) / 12784.66) / (1 - (788.333 + 10685.515) / 12026.181)
=0.05501257 / 0.04592755
=1.1978

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
=1726.614 / 2051.524
=0.8416

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))
=(389.789 / (389.789 + 10685.515)) / (364.461 / (364.461 + 11293.321))
=0.03519443 / 0.03126332
=1.1257

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)
=(86.491 / 1726.614) / (143.591 / 2051.524)
=0.05009284 / 0.06999236
=0.7157

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)
=((1993.156 + 643.054) / 12784.66) / ((1084.352 + 614.79) / 12026.181)
=0.20620103 / 0.14128691
=1.4594

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
=(-1631.663 - 23.802 - 382.751) / 12784.66
=-0.1594

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 -2.66 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 6.41041.93491.33740.61160.25983.03521.46270.72750.80890.5705
GMI 0.74981.31940.83210.6651.73980.93560.89920.83021.05471.635
AQI -0-4.95395382176E+140.7150.3830.99961.87570.93151.09980.87860.7437
SGI 3.39232.32393.67544.41531.27071.24641.42551.28841.07520.7886
DEPI 4.61621.67221.47532.22710.39430.76140.80530.86791.05420.9569
SGAI 1.06061.35281.40070.23960.66411.39140.75510.86351.11761.1765
LVGI 0.12715.51380.18251.89790.87250.98350.97971.00061.41371.3168
TATA -0.0411-0.0063-0.0139-0.0049-0.015-0.038-0.0179-0.0516-0.0508-0.0963
M-score 4.59-200,139,734,399,068.030.20-0.26-2.57-0.34-1.81-2.76-3.00-3.42

Yamana Gold Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.95481.34130.80890.65540.30510.53370.57051.06120.8476
GMI 0.94670.97591.05471.11451.16681.24611.6352.06112.6099
AQI 0.72030.78720.87860.87130.86470.92650.74370.66521.1978
SGI 1.08881.06371.07521.02430.99430.90140.78860.71880.8416
DEPI 0.96631.03531.05421.04611.06081.03520.95690.93361.1257
SGAI 0.94541.02161.03971.07241.17221.14441.16831.20160.7157
LVGI 1.31541.41421.41371.07241.27621.26391.31681.37141.4594
TATA -0.0486-0.0561-0.0497-0.0468-0.0549-0.034-0.0961-0.0964-0.1594
M-score -2.91-2.61-2.98-3.02-3.46-3.16-3.42-2.86-2.66
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