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Eldorado Gold Corp (NYSE:EGO)
Beneish M-Score
-4.59 (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 -4.58 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: -4.59

-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 -2.56.


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 * 0.6893+0.528 * 1.1175+0.404 * 0.2265+0.892 * 1.1993+0.115 * 0.4846
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9814+4.679 * -0.3227-0.327 * 1.5455
=-4.58

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $61.6 Mil.
Revenue was 116.231 + 107.063 + 164.132 + 493.186 = $880.6 Mil.
Gross Profit was 49.123 + 41.633 + 38.179 + 97.509 = $226.4 Mil.
Total Current Assets was $1,414.2 Mil.
Total Assets was $5,080.2 Mil.
Property, Plant and Equipment(Net PPE) was $3,567.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $180.0 Mil.
Selling, General & Admin. Expense(SGA) was $83.2 Mil.
Total Current Liabilities was $302.6 Mil.
Long-Term Debt was $591.0 Mil.
Net Income was 20.74 + -329.864 + -2.478 + -1237.96 = $-1,549.6 Mil.
Non Operating Income was 0.348 + 0.451 + -6.841 + -9.144 = $-15.2 Mil.
Cash Flow from Operations was 59.884 + 2.486 + 2.441 + 40.26 = $105.1 Mil.
Accounts Receivable was $74.5 Mil.
Revenue was 112.372 + 124.561 + 238.311 + 259.022 = $734.3 Mil.
Gross Profit was 29.976 + 36.182 + 67.387 + 77.443 = $211.0 Mil.
Total Current Assets was $676.6 Mil.
Total Assets was $7,108.2 Mil.
Property, Plant and Equipment(Net PPE) was $5,822.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $138.7 Mil.
Selling, General & Admin. Expense(SGA) was $70.7 Mil.
Total Current Liabilities was $220.2 Mil.
Long-Term Debt was $588.8 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)
=(61.553 / 880.612) / (74.463 / 734.266)
=0.06989798 / 0.10141148
=0.6893

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)
=(210.988 / 734.266) / (226.444 / 880.612)
=0.28734546 / 0.2571439
=1.1175

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 - (1414.234 + 3567.473) / 5080.241) / (1 - (676.622 + 5822.828) / 7108.231)
=0.01939554 / 0.08564452
=0.2265

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
=880.612 / 734.266
=1.1993

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))
=(138.742 / (138.742 + 5822.828)) / (179.979 / (179.979 + 3567.473))
=0.02327273 / 0.04802703
=0.4846

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)
=(83.21 / 880.612) / (70.694 / 734.266)
=0.0944911 / 0.09627846
=0.9814

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)
=((591.04 + 302.574) / 5080.241) / ((588.846 + 220.151) / 7108.231)
=0.17589992 / 0.1138113
=1.5455

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
=(-1549.562 - -15.186 - 105.071) / 5080.241
=-0.3227

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 -4.58 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 local exchange's currency.

Eldorado Gold Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.36690.45540.82310.58860.1240.69747.26420.41320.96741.0096
GMI -0.1020.7460.97641.06741.22110.83991.0891.2041.26971.473
AQI 0.62350.1550.517811.68761.06010.94461.06030.71150.96820.3351
SGI 2.50582.22811.52751.24372.20711.39511.03970.97950.95010.8084
DEPI 7.91250.11181.34572.5370.38660.92632.17160.74260.88540.7944
SGAI 0.50840.6320.93570.68290.88280.91661.11350.98211.03311.0296
LVGI 0.87470.91020.27062.11620.82610.7431.63821.0890.9491.4182
TATA 0.0579-0.0479-0.0018-0.0268-0.0257-0.0490.0014-0.1362-0.024-0.3216
M-score -0.34-2.59-2.101.45-2.18-2.653.30-3.74-2.54-4.33

Eldorado Gold Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.91170.9750.96740.94491.23981.30230.91.06060.58360.6893
GMI 1.30541.33341.26971.20651.231.24521.4481.45381.30931.1175
AQI 0.71030.73390.96821.00081.02931.04450.33510.35320.21720.2265
SGI 0.86060.83770.95010.9630.83190.70560.90690.87130.99021.1993
DEPI 0.77910.86630.88540.92781.06241.17620.69930.74810.52040.4846
SGAI 1.13791.24261.03311.05571.05391.08670.97251.02721.07670.9814
LVGI 1.05981.04360.9490.96831.08431.07241.41821.4211.64321.5455
TATA -0.1167-0.1166-0.024-0.0306-0.0636-0.0743-0.3216-0.3065-0.3396-0.3227
M-score -3.26-3.20-2.54-2.61-2.60-2.68-4.36-4.17-4.89-4.58
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