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Cameco Corp (NYSE:CCJ)
Beneish M-Score
-1.98 (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.

Cameco Corp has a M-score of -2.06 signals that the company is a manipulator.

CCJ' s 10-Year Beneish M-Score Range
Min: -3.59   Max: -0.7
Current: -1.98

-3.59
-0.7

During the past 13 years, the highest Beneish M-Score of Cameco Corp was -0.70. The lowest was -3.59. And the median was -2.53.


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 Cameco Corp 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 * 1.0451+0.528 * 1.0076+0.404 * 1.0399+0.892 * 1.2077+0.115 * 0.801
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6836+4.679 * 0.0259-0.327 * 0.9519
=-2.06

* 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 $260 Mil.
Revenue was 381.464058235 + 893.437842779 + 575.847490347 + 404.633653846 = $2,255 Mil.
Gross Profit was 97.907188353 + 169.174588665 + 219.67953668 + 95.2076923077 = $582 Mil.
Total Current Assets was $1,764 Mil.
Total Assets was $7,412 Mil.
Property, Plant and Equipment(Net PPE) was $4,702 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $163 Mil.
Total Current Liabilities was $539 Mil.
Long-Term Debt was $1,177 Mil.
Net Income was 119.505914468 + 58.8080438757 + 203.925675676 + 33.0326923077 = $415 Mil.
Non Operating Income was -78.9317561419 + -2.02285191956 + 87.1061776062 + -32.7519230769 = $-27 Mil.
Cash Flow from Operations was 6.3585077343 + 147.940585009 + 130.870656371 + -35.1846153846 = $250 Mil.
Accounts Receivable was $206 Mil.
Revenue was 435.628066732 + 853.181451613 + 300.092198582 + 278.581854043 = $1,867 Mil.
Gross Profit was 93.2757605496 + 256.700604839 + 86.327254306 + 49.2386587771 = $486 Mil.
Total Current Assets was $1,629 Mil.
Total Assets was $7,463 Mil.
Property, Plant and Equipment(Net PPE) was $4,919 Mil.
Depreciation, Depletion and Amortization(DDA) was $229 Mil.
Selling, General & Admin. Expense(SGA) was $197 Mil.
Total Current Liabilities was $547 Mil.
Long-Term Debt was $1,269 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)
=(260.276615105 / 2255.38304521) / (206.216879293 / 1867.48357097)
=0.1154024 / 0.110425
=1.0451

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)
=(169.174588665 / 1867.48357097) / (97.907188353 / 2255.38304521)
=0.25999815 / 0.25803555
=1.0076

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 - (1764.08644222 + 4702.47770701) / 7411.54413103) / (1 - (1628.97841021 + 4918.89892051) / 7462.90873405)
=0.12750109 / 0.12261056
=1.0399

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
=2255.38304521 / 1867.48357097
=1.2077

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))
=(229.041608113 / (229.041608113 + 4918.89892051)) / (276.550162588 / (276.550162588 + 4702.47770701))
=0.04449189 / 0.055543
=0.801

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)
=(162.987321143 / 2255.38304521) / (197.405711004 / 1867.48357097)
=0.07226592 / 0.1057068
=0.6836

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)
=((1177.09008189 + 539.297543221) / 7411.54413103) / ((1268.56722277 + 547.067713445) / 7462.90873405)
=0.231583 / 0.24328784
=0.9519

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
=(415.272326327 - -26.6003535323 - 249.985133729) / 7411.54413103
=0.0259

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.

Cameco Corp has a M-score of -2.06 signals that the company is likely to 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.

Cameco Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.79961.51540.84650.9841.18470.73591.32691.10440.79840.7903
GMI 0.86061.0680.98840.80841.00151.10931.17820.82411.54321.1481
AQI 1.24510.34811.16711.29821.70270.52970.87360.95121.05671.6281
SGI 1.34141.32551.37291.46820.77911.24460.96351.10170.80971.1696
DEPI 0.76551.13761.1320.92341.01981.08110.98270.95691.37560.813
SGAI 1.17931.21941.05810.62410.69881.47931.37780.81871.44860.7927
LVGI 0.85541.39330.8321.11931.51920.58540.92091.00661.16050.9955
TATA -0.0261-0.0765-0.0231-0.04770.15780.0604-0.0111-0.0372-0.0639-0.0292
M-score -2.47-2.45-2.28-2.26-1.60-2.29-2.26-2.56-2.91-2.31

Cameco Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.06171.02671.56231.5670.81690.70580.57590.56870.76081.0451
GMI 0.90540.85020.80810.85771.52931.70511.68021.54221.1441.0076
AQI 0.95121.04471.12481.07561.05671.30261.26961.2211.62811.0399
SGI 1.1461.14061.1020.94560.79140.78150.89711.13141.21511.2077
DEPI 0.92180.97490.95951.16331.40591.2241.08390.91420.7840.801
SGAI 0.85030.81950.88411.09451.41271.55081.24440.95080.80120.6836
LVGI 1.00660.94490.96880.92651.16051.24171.26351.20060.99550.9519
TATA -0.0389-0.048-0.0363-0.0325-0.064-0.0561-0.0597-0.0535-0.03130.0259
M-score -2.53-2.57-2.07-2.18-2.91-2.86-2.89-2.70-2.31-2.06
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