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Eldorado Gold Corp (NYSE:EGO)
Beneish M-Score
-3.25 (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 -3.26 suggests that the company is not a manipulator.

EGO' s 10-Year Beneish M-Score Range
Min: -61.96   Max: 15.41
Current: -3.25

-61.96
15.41

During the past 13 years, the highest Beneish M-Score of Eldorado Gold Corp was 15.41. The lowest was -61.96. And the median was -2.61.


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 * 0.9117+0.528 * 1.3054+0.404 * 0.7103+0.892 * 0.8606+0.115 * 0.7791
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1379+4.679 * -0.1176-0.327 * 1.0598
=-3.26

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $83 Mil.
Revenue was 265.497 + 279.87 + 231.741 + 287.254 = $1,064 Mil.
Gross Profit was 98.878 + 99.513 + 80.844 + 126.04 = $405 Mil.
Total Current Assets was $906 Mil.
Total Assets was $7,312 Mil.
Property, Plant and Equipment(Net PPE) was $5,807 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $90 Mil.
Total Current Liabilities was $188 Mil.
Long-Term Debt was $586 Mil.
Net Income was 37.632 + 31.268 + -687.55 + 36.41 = $-582 Mil.
Non Operating Income was 0.681 + -2.246 + -9.184 + -11.831 = $-23 Mil.
Cash Flow from Operations was 62.833 + 69.437 + 47.566 + 120.261 = $300 Mil.
Accounts Receivable was $106 Mil.
Revenue was 266.929 + 338.068 + 349.962 + 281.839 = $1,237 Mil.
Gross Profit was 115.562 + 170.586 + 180.462 + 148.142 = $615 Mil.
Total Current Assets was $1,069 Mil.
Total Assets was $8,001 Mil.
Property, Plant and Equipment(Net PPE) was $6,010 Mil.
Depreciation, Depletion and Amortization(DDA) was $133 Mil.
Selling, General & Admin. Expense(SGA) was $92 Mil.
Total Current Liabilities was $215 Mil.
Long-Term Debt was $584 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)
=(82.822 / 1064.362) / (105.556 / 1236.798)
=0.07781375 / 0.08534619
=0.9117

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)
=(99.513 / 1236.798) / (98.878 / 1064.362)
=0.49705126 / 0.38076801
=1.3054

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 - (905.776 + 5806.914) / 7311.566) / (1 - (1068.959 + 6009.707) / 8001.399)
=0.08190803 / 0.11532146
=0.7103

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
=1064.362 / 1236.798
=0.8606

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))
=(133.324 / (133.324 + 6009.707)) / (166.387 / (166.387 + 5806.914))
=0.02170329 / 0.02785512
=0.7791

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)
=(90.154 / 1064.362) / (92.068 / 1236.798)
=0.08470239 / 0.07444061
=1.1379

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)
=((586.104 + 188.028) / 7311.566) / ((583.973 + 215.394) / 8001.399)
=0.10587773 / 0.0999034
=1.0598

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
=(-582.24 - -22.58 - 300.097) / 7311.566
=-0.1176

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 -3.26 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 2.88391.00881.36690.4810.77930.58860.350.71074.13560.5771
GMI 4.2476-2.057-0.1020.7460.9031.15411.15320.88931.0891.204
AQI 0.738734.05470.62350.1550.517811.68761.06010.94461.06030.7115
SGI 0.93940.9412.50582.2281.52751.24372.20711.39511.03970.9795
DEPI 2.10071.33827.91250.11181.34582.5370.38660.92632.17160.7426
SGAI 1.45131.71580.50840.6320.93560.68290.88280.91661.11350.9821
LVGI 0.63598.4790.87470.91020.27062.11620.82610.7431.63821.089
TATA -0.0146-0.06350.0445-0.0638-0.0135-0.0268-0.0257-0.0490.0014-0.1371
M-score 0.916.39-0.40-2.65-2.231.50-2.01-2.610.42-3.59

Eldorado Gold Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.21951.24491.32344.13561.53521.60641.58890.57711.09860.9117
GMI 0.87790.92421.03531.09941.14561.13461.12781.1841.27671.3054
AQI 0.87960.8690.93171.06031.13391.16161.06760.71150.69830.7103
SGI 1.39481.31181.08911.03971.05011.07761.1270.97950.87790.8606
DEPI 2.02492.11092.23222.17160.9770.87050.75790.74260.76370.7791
SGAI 0.74680.811.00971.11351.14671.0210.86350.98211.06051.1379
LVGI 0.51130.52610.59821.63822.44962.58622.41521.0891.0471.0598
TATA -0.0212-0.0075-0.00520.0014-0.0233-0.0319-0.034-0.1371-0.1119-0.1176
M-score -1.82-1.79-1.860.43-2.42-2.40-2.36-3.60-3.05-3.26
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