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Eldorado Gold Corp (NYSE:EGO)
Beneish M-Score
-4.98 (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 -4.93 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: -4.98

-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 * 0.7503+0.528 * 1.3437+0.404 * 0.2172+0.892 * 0.7703+0.115 * 0.6726
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2787+4.679 * -0.3396-0.327 * 1.6432
=-4.93

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $49.4 Mil.
Revenue was 107.063 + 164.132 + 199.28 + 211.516 = $682.0 Mil.
Gross Profit was 41.633 + 38.179 + 29.329 + 47.985 = $157.1 Mil.
Total Current Assets was $1,559.0 Mil.
Total Assets was $5,151.7 Mil.
Property, Plant and Equipment(Net PPE) was $3,498.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $141.9 Mil.
Selling, General & Admin. Expense(SGA) was $77.8 Mil.
Total Current Liabilities was $381.4 Mil.
Long-Term Debt was $590.5 Mil.
Net Income was -329.864 + -2.478 + -1237.96 + -96.091 = $-1,666.4 Mil.
Non Operating Income was 0.451 + -6.841 + -8.847 + 0.768 = $-14.5 Mil.
Cash Flow from Operations was 2.486 + 2.441 + 40.259 + 52.563 = $97.7 Mil.
Accounts Receivable was $85.4 Mil.
Revenue was 124.561 + 238.311 + 259.022 + 263.51 = $885.4 Mil.
Gross Profit was 36.182 + 67.387 + 77.443 + 93.089 = $274.1 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 $155.6 Mil.
Selling, General & Admin. Expense(SGA) was $79.0 Mil.
Total Current Liabilities was $232.0 Mil.
Long-Term Debt was $588.3 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)
=(49.367 / 681.991) / (85.421 / 885.404)
=0.07238659 / 0.09647686
=0.7503

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)
=(274.101 / 885.404) / (157.126 / 681.991)
=0.30957732 / 0.23039307
=1.3437

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 - (1558.965 + 3498.434) / 5151.724) / (1 - (765.385 + 5777.422) / 7145.234)
=0.0183094 / 0.08431172
=0.2172

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
=681.991 / 885.404
=0.7703

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))
=(155.555 / (155.555 + 5777.422)) / (141.913 / (141.913 + 3498.434))
=0.02621871 / 0.03898337
=0.6726

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)
=(77.845 / 681.991) / (79.038 / 885.404)
=0.11414374 / 0.08926772
=1.2787

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)
=((590.492 + 381.361) / 5151.724) / ((588.298 + 231.987) / 7145.234)
=0.18864617 / 0.1148017
=1.6432

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
=(-1666.393 - -14.469 - 97.749) / 5151.724
=-0.3396

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 -4.93 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 1.36690.45540.82310.58860.1240.69747.26420.41320.96741.0096
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.09860.91170.9750.96740.94491.23981.14741.12661.35590.7503
GMI 1.27671.30541.33341.26971.20651.231.30211.47761.51341.3437
AQI 0.69830.71030.73390.96821.00081.02931.04450.33510.35320.2172
SGI 0.87790.86060.83770.95010.9630.83190.80090.72450.68150.7703
DEPI 0.76370.77910.86630.88540.92781.06241.02120.88150.9620.6726
SGAI 1.06051.13791.24261.03311.05571.05390.98961.11731.20731.2787
LVGI 1.0471.05981.04360.9490.96831.08431.07241.41821.4211.6432
TATA -0.111-0.1167-0.1166-0.024-0.0306-0.0636-0.0743-0.3216-0.3066-0.3396
M-score -3.05-3.26-3.20-2.54-2.61-2.60-2.71-4.30-4.04-4.93
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