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Eldorado Gold Corp (NYSE:EGO)
Beneish M-Score
-2.49 (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.

Eldorado Gold Corp has a M-score of -2.62 suggests that the company is not a manipulator.

EGO' s 10-Year Beneish M-Score Range
Min: -15.1   Max: 16.64
Current: -2.49

-15.1
16.64

During the past 13 years, the highest Beneish M-Score of Eldorado Gold Corp was 16.64. The lowest was -15.10. And the median was -2.48.


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 Eldorado Gold 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 * 0.9449+0.528 * 1.1772+0.404 * 1.0008+0.892 * 0.963+0.115 * 0.9278
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0498+4.679 * -0.0299-0.327 * 0.9683
=-2.62

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $82 Mil.
Revenue was 238.311 + 259.022 + 263.51 + 265.497 = $1,026 Mil.
Gross Profit was 67.387 + 77.443 + 93.089 + 98.878 = $337 Mil.
Total Current Assets was $800 Mil.
Total Assets was $7,382 Mil.
Property, Plant and Equipment(Net PPE) was $5,988 Mil.
Depreciation, Depletion and Amortization(DDA) was $177 Mil.
Selling, General & Admin. Expense(SGA) was $88 Mil.
Total Current Liabilities was $185 Mil.
Long-Term Debt was $588 Mil.
Net Income was -8.244 + 13.916 + 19.791 + 37.632 = $63 Mil.
Non Operating Income was 1.244 + -11.223 + 4.388 + 0.681 = $-5 Mil.
Cash Flow from Operations was 75.006 + 58.886 + 92.189 + 62.833 = $289 Mil.
Accounts Receivable was $90 Mil.
Revenue was 279.87 + 231.741 + 287.254 + 266.929 = $1,066 Mil.
Gross Profit was 99.513 + 80.844 + 126.04 + 105.322 = $412 Mil.
Total Current Assets was $943 Mil.
Total Assets was $7,282 Mil.
Property, Plant and Equipment(Net PPE) was $5,755 Mil.
Depreciation, Depletion and Amortization(DDA) was $158 Mil.
Selling, General & Admin. Expense(SGA) was $88 Mil.
Total Current Liabilities was $202 Mil.
Long-Term Debt was $586 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)
=(82.12 / 1026.34) / (90.248 / 1065.794)
=0.08001247 / 0.08467678
=0.9449

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)
=(77.443 / 1065.794) / (67.387 / 1026.34)
=0.38630261 / 0.32815344
=1.1772

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 - (800.201 + 5988.393) / 7381.647) / (1 - (942.55 + 5754.756) / 7281.887)
=0.08034156 / 0.08027878
=1.0008

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
=1026.34 / 1065.794
=0.963

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))
=(157.526 / (157.526 + 5754.756)) / (177.064 / (177.064 + 5988.393))
=0.02664386 / 0.02871871
=0.9278

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)
=(88.469 / 1026.34) / (87.51 / 1065.794)
=0.08619853 / 0.0821078
=1.0498

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)
=((587.761 + 184.989) / 7381.647) / ((585.555 + 201.709) / 7281.887)
=0.10468531 / 0.10811264
=0.9683

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
=(63.095 - -4.91 - 288.914) / 7381.647
=-0.0299

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.

Eldorado Gold Corp has a M-score of -2.62 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.

Eldorado Gold Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.00881.36690.45540.82310.7090.10290.70047.23260.41320.9674
GMI -2.057-0.1020.7460.9031.07591.23710.89221.08551.2041.2697
AQI 34.05470.62350.1550.517811.51071.07641.0040.99750.71150.9682
SGI 0.9412.50582.22811.52751.25152.19331.3891.04420.97950.9501
DEPI 1.33827.91250.11181.34572.5370.38660.92632.17160.74260.8854
SGAI 1.71580.50840.6320.93570.67870.88840.92061.10860.98211.0331
LVGI 8.4790.87470.91020.27062.11620.82610.7431.63821.0890.949
TATA -0.06350.0445-0.0638-0.0135-0.0268-0.0257-0.05020.0014-0.1371-0.0236
M-score 6.39-0.40-2.67-2.191.50-2.20-2.613.25-3.74-2.54

Eldorado Gold Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 7.23261.53031.60281.58710.41321.09860.91170.9750.96740.9449
GMI 1.09581.1431.15191.14651.20911.30851.28361.31041.24331.1772
AQI 0.99751.13391.16161.06760.71150.69830.71030.73390.96821.0008
SGI 1.04421.05351.081.12830.97950.87790.86060.83770.95010.963
DEPI 2.17160.9770.87050.75790.74260.76370.77910.86630.88540.9278
SGAI 1.10860.75450.65190.54740.98211.30821.44271.60511.03311.0498
LVGI 1.63822.44962.58622.41521.0891.0471.05981.04360.9490.9683
TATA 0.0014-0.0232-0.0317-0.0338-0.1369-0.1119-0.1176-0.1177-0.0233-0.0299
M-score 3.26-2.36-2.33-2.29-3.74-3.08-3.32-3.28-2.55-2.62
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