Switch to:
Eldorado Gold Corp (NYSE:EGO)
Beneish M-Score
-2.48 (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: -15.08   Max: 16.64
Current: -2.48

-15.08
16.64

During the past 13 years, the highest Beneish M-Score of Eldorado Gold Corp was 16.64. The lowest was -15.08. 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 * 1.1259+0.528 * 1.2556+0.404 * 1.0293+0.892 * 0.9161+0.115 * 0.9536
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9816+4.679 * -0.0629-0.327 * 1.0843
=-2.62

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $85.4 Mil.
Revenue was 214.185 + 238.311 + 259.022 + 263.51 = $975.0 Mil.
Gross Profit was 57.771 + 67.387 + 77.443 + 93.089 = $295.7 Mil.
Total Current Assets was $765.4 Mil.
Total Assets was $7,145.2 Mil.
Property, Plant and Equipment(Net PPE) was $5,777.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $173.8 Mil.
Selling, General & Admin. Expense(SGA) was $81.1 Mil.
Total Current Liabilities was $232.0 Mil.
Long-Term Debt was $588.3 Mil.
Net Income was -198.6 + -8.244 + 13.916 + 19.791 = $-173.1 Mil.
Non Operating Income was 1.706 + 1.244 + -11.223 + 4.388 = $-3.9 Mil.
Cash Flow from Operations was 53.93 + 75.006 + 58.886 + 92.189 = $280.0 Mil.
Accounts Receivable was $82.8 Mil.
Revenue was 265.497 + 279.87 + 231.741 + 287.254 = $1,064.4 Mil.
Gross Profit was 98.878 + 99.513 + 80.844 + 126.04 = $405.3 Mil.
Total Current Assets was $905.8 Mil.
Total Assets was $7,311.6 Mil.
Property, Plant and Equipment(Net PPE) was $5,806.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $166.4 Mil.
Selling, General & Admin. Expense(SGA) was $90.2 Mil.
Total Current Liabilities was $188.0 Mil.
Long-Term Debt was $586.1 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)
=(85.421 / 975.028) / (82.822 / 1064.362)
=0.08760877 / 0.07781375
=1.1259

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)
=(67.387 / 1064.362) / (57.771 / 975.028)
=0.38076801 / 0.30326309
=1.2556

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 - (765.385 + 5777.422) / 7145.234) / (1 - (905.776 + 5806.914) / 7311.566)
=0.08431172 / 0.08190803
=1.0293

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
=975.028 / 1064.362
=0.9161

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))
=(166.387 / (166.387 + 5806.914)) / (173.835 / (173.835 + 5777.422))
=0.02785512 / 0.0292098
=0.9536

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)
=(81.066 / 975.028) / (90.154 / 1064.362)
=0.08314223 / 0.08470239
=0.9816

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)
=((588.298 + 231.987) / 7145.234) / ((586.104 + 188.028) / 7311.566)
=0.1148017 / 0.10587773
=1.0843

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
=(-173.137 - -3.885 - 280.011) / 7145.234
=-0.0629

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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.53031.60281.58710.41321.09860.91170.9750.96740.94491.1259
GMI 1.1431.15191.14651.20911.30851.28361.31041.24331.17721.2556
AQI 1.13391.16161.06760.71150.69830.71030.73390.96821.00081.0293
SGI 1.05351.081.12830.97950.87790.86060.83770.95010.9630.9161
DEPI 0.9770.87050.75790.74260.76370.77910.86630.88540.92780.9536
SGAI 0.75450.65190.54740.98211.30821.44271.60511.03311.04980.9816
LVGI 2.44962.58622.41521.0891.0471.05981.04360.9490.96831.0843
TATA -0.0232-0.0317-0.0338-0.1369-0.1119-0.1176-0.1177-0.0233-0.0299-0.0629
M-score -2.36-2.33-2.29-3.74-3.08-3.32-3.28-2.55-2.62-2.62
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK