Switch to:
Eldorado Gold Corp (NYSE:EGO)
Beneish M-Score
-3.14 (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 -3.20 suggests that the company is not a manipulator.

EGO' s 10-Year Beneish M-Score Range
Min: -15.1   Max: 16.64
Current: -3.14

-15.1
16.64

During the past 13 years, the highest Beneish M-Score of Eldorado Gold Corp was 16.64. The lowest was -15.10. And the median was -2.51.


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 * 0.975+0.528 * 1.3334+0.404 * 0.7339+0.892 * 0.8377+0.115 * 0.8663
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2426+4.679 * -0.1174-0.327 * 1.0436
=-3.20

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $81 Mil.
Revenue was 263.51 + 265.497 + 279.87 + 231.741 = $1,041 Mil.
Gross Profit was 93.089 + 98.878 + 99.513 + 80.844 = $372 Mil.
Total Current Assets was $873 Mil.
Total Assets was $7,348 Mil.
Property, Plant and Equipment(Net PPE) was $5,872 Mil.
Depreciation, Depletion and Amortization(DDA) was $165 Mil.
Selling, General & Admin. Expense(SGA) was $92 Mil.
Total Current Liabilities was $193 Mil.
Long-Term Debt was $587 Mil.
Net Income was 19.791 + 37.632 + 31.268 + -687.55 = $-599 Mil.
Non Operating Income was 4.388 + 0.681 + -2.246 + -11.19 = $-8 Mil.
Cash Flow from Operations was 92.189 + 62.833 + 69.437 + 47.566 = $272 Mil.
Accounts Receivable was $99 Mil.
Revenue was 287.254 + 266.929 + 338.068 + 349.962 = $1,242 Mil.
Gross Profit was 126.04 + 115.562 + 170.586 + 180.462 = $593 Mil.
Total Current Assets was $1,049 Mil.
Total Assets was $8,027 Mil.
Property, Plant and Equipment(Net PPE) was $6,081 Mil.
Depreciation, Depletion and Amortization(DDA) was $148 Mil.
Selling, General & Admin. Expense(SGA) was $89 Mil.
Total Current Liabilities was $232 Mil.
Long-Term Debt was $585 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)
=(81.035 / 1040.618) / (99.211 / 1242.213)
=0.077872 / 0.07986634
=0.975

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)
=(98.878 / 1242.213) / (93.089 / 1040.618)
=0.47709209 / 0.35779124
=1.3334

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 - (872.875 + 5872.154) / 7347.523) / (1 - (1048.956 + 6081.177) / 8027.026)
=0.08199961 / 0.11173416
=0.7339

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
=1040.618 / 1242.213
=0.8377

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))
=(147.703 / (147.703 + 6081.177)) / (165.267 / (165.267 + 5872.154))
=0.02371261 / 0.02737377
=0.8663

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)
=(92.192 / 1040.618) / (88.568 / 1242.213)
=0.08859351 / 0.07129856
=1.2426

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)
=((586.652 + 193.14) / 7347.523) / ((584.519 + 231.779) / 8027.026)
=0.10612992 / 0.1016937
=1.0436

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
=(-598.859 - -8.367 - 272.025) / 7347.523
=-0.1174

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 -3.20 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 2.88391.00881.36690.45540.82310.58860.1240.69747.26420.4132
GMI 4.2476-2.057-0.1020.7460.9031.15411.15320.88931.0891.204
AQI 0.586934.05470.62350.1550.517811.68761.06010.94461.06030.7115
SGI 0.93940.9412.50582.22811.52751.24372.20711.39511.03970.9795
DEPI 2.10071.33827.91250.11181.34572.5370.38660.92632.17160.7426
SGAI 1.45131.71580.50840.6320.93570.68290.88280.91661.11350.9821
LVGI 0.63718.4790.87470.91020.27062.11620.82610.7431.63821.089
TATA -0.0146-0.06350.0445-0.0638-0.0135-0.0268-0.0257-0.0490.0014-0.1371
M-score 0.856.39-0.40-2.67-2.191.50-2.22-2.633.30-3.74

Eldorado Gold Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.24491.32347.26421.53521.60641.58890.41321.09860.91170.975
GMI 0.92421.03531.09941.14561.13461.12781.1841.27671.30541.3334
AQI 0.8690.93171.06031.13391.16161.06760.71150.69830.71030.7339
SGI 1.31181.08911.03971.05011.07761.1270.97950.87790.86060.8377
DEPI 2.11092.23222.17160.9770.87050.75790.74260.76370.77910.8663
SGAI 0.811.00971.11351.14671.0210.86350.98211.06051.13791.2426
LVGI 0.52610.59821.63822.44962.58622.41521.0891.0471.05981.0436
TATA -0.0075-0.00520.0014-0.0233-0.0319-0.034-0.1369-0.1117-0.1174-0.1174
M-score -1.79-1.863.31-2.42-2.40-2.36-3.75-3.05-3.26-3.20
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)
Free 7-day Trial
FEEDBACK