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Eldorado Gold Corp (NYSE:EGO)
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.

Eldorado Gold Corp has a M-score of -4.11 suggests that the company is not a manipulator.

EGO' s Beneish M-Score Range Over the Past 10 Years
Min: -15.04   Max: 15.34
Current: -4.13

-15.04
15.34

During the past 13 years, the highest Beneish M-Score of Eldorado Gold Corp was 15.34. The lowest was -15.04. 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 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 * 1.2019+0.528 * 1.4945+0.404 * 0.3532+0.892 * 0.7689+0.115 * 0.8588
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1071+4.679 * -0.3066-0.327 * 1.421
=-4.11

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $75.9 Mil.
Revenue was 164.132 + 199.28 + 211.516 + 214.185 = $789.1 Mil.
Gross Profit was 38.179 + 29.329 + 47.985 + 57.771 = $173.3 Mil.
Total Current Assets was $520.5 Mil.
Total Assets was $5,450.6 Mil.
Property, Plant and Equipment(Net PPE) was $4,775.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $165.2 Mil.
Selling, General & Admin. Expense(SGA) was $75.7 Mil.
Total Current Liabilities was $220.9 Mil.
Long-Term Debt was $589.9 Mil.
Net Income was -2.478 + -1237.96 + -96.091 + -198.6 = $-1,535.1 Mil.
Non Operating Income was -6.841 + -8.847 + 0.768 + 1.706 = $-13.2 Mil.
Cash Flow from Operations was 2.441 + 40.259 + 52.563 + 53.93 = $149.2 Mil.
Accounts Receivable was $82.1 Mil.
Revenue was 238.311 + 259.022 + 263.51 + 265.497 = $1,026.3 Mil.
Gross Profit was 67.387 + 77.443 + 93.089 + 98.878 = $336.8 Mil.
Total Current Assets was $800.2 Mil.
Total Assets was $7,381.6 Mil.
Property, Plant and Equipment(Net PPE) was $5,988.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $177.1 Mil.
Selling, General & Admin. Expense(SGA) was $89.0 Mil.
Total Current Liabilities was $185.0 Mil.
Long-Term Debt was $587.8 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)
=(75.887 / 789.113) / (82.12 / 1026.34)
=0.09616747 / 0.08001247
=1.2019

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)
=(336.797 / 1026.34) / (173.264 / 789.113)
=0.32815344 / 0.21956805
=1.4945

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 - (520.451 + 4775.51) / 5450.64) / (1 - (800.201 + 5988.393) / 7381.647)
=0.02837814 / 0.08034156
=0.3532

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
=789.113 / 1026.34
=0.7689

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))
=(177.064 / (177.064 + 5988.393)) / (165.228 / (165.228 + 4775.51))
=0.02871871 / 0.03344197
=0.8588

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)
=(75.732 / 789.113) / (88.968 / 1026.34)
=0.09597105 / 0.08668472
=1.1071

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)
=((589.944 + 220.875) / 5450.64) / ((587.761 + 184.989) / 7381.647)
=0.14875666 / 0.10468531
=1.421

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
=(-1535.129 - -13.214 - 149.193) / 5450.64
=-0.3066

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 -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 own currency.

Eldorado Gold Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.36690.45540.82310.58490.12480.70047.23260.41320.96741.0096
GMI -0.1020.7460.9031.14910.96811.12231.03251.2041.26971.473
AQI 0.62350.1550.517811.68761.06010.94461.06030.71150.96820.3351
SGI 2.50582.2281.52751.25152.19331.3891.04420.97950.95010.8084
DEPI 7.91250.11181.34572.5370.38790.92332.17160.74260.88540.7944
SGAI 0.50840.6320.93560.67870.8720.93791.10860.98211.03311.0296
LVGI 0.87470.91020.27062.11620.82610.7431.63821.0890.9491.4182
TATA 0.0579-0.04790.0101-0.0262-0.0254-0.05020.0014-0.1371-0.0236-0.3216
M-score -0.34-2.59-2.081.50-2.32-2.523.25-3.74-2.54-4.33

Eldorado Gold Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.41321.09860.91170.9750.96740.94491.12591.0361.00961.2019
GMI 1.1841.27671.30541.33341.26971.20651.25561.31791.4731.4945
AQI 0.71150.69830.71030.73390.96821.00081.02931.04450.33510.3532
SGI 0.97950.87790.86060.83770.95010.9630.91610.8870.80840.7689
DEPI 0.74260.76370.77910.86630.88540.92780.95360.91950.79440.8588
SGAI 0.98211.06051.13791.24261.03311.05570.98760.92441.03661.1071
LVGI 1.0891.0471.05981.04360.9490.96831.08431.07241.41821.421
TATA -0.1362-0.111-0.1167-0.1166-0.024-0.0306-0.0636-0.0743-0.3216-0.3066
M-score -3.75-3.05-3.26-3.20-2.54-2.61-2.62-2.73-4.33-4.11
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