Switch to:
Goldcorp Inc (NYSE:GG)
Beneish M-Score
-2.98 (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.

Goldcorp Inc has a M-score of -2.98 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -6.83   Max: 4.06
Current: -2.98

-6.83
4.06

During the past 13 years, the highest Beneish M-Score of Goldcorp Inc was 4.06. The lowest was -6.83. And the median was -2.33.


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 Goldcorp Inc 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 * 1.3801+0.528 * 1.575+0.404 * 0.969+0.892 * 0.7912+0.115 * 0.8759
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2484+4.679 * -0.1229-0.327 * 1.9899
=-2.98

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $701 Mil.
Revenue was 854 + 929 + 889 + 1015 = $3,687 Mil.
Gross Profit was 287 + 234 + 179 + 362 = $1,062 Mil.
Total Current Assets was $2,374 Mil.
Total Assets was $29,564 Mil.
Property, Plant and Equipment(Net PPE) was $25,138 Mil.
Depreciation, Depletion and Amortization(DDA) was $634 Mil.
Selling, General & Admin. Expense(SGA) was $242 Mil.
Total Current Liabilities was $2,033 Mil.
Long-Term Debt was $1,482 Mil.
Net Income was -1089 + 5 + -1934 + 309 = $-2,709 Mil.
Non Operating Income was -102 + 3 + 18 + 49 = $-32 Mil.
Cash Flow from Operations was 307 + 274 + 80 + 294 = $955 Mil.
Accounts Receivable was $642 Mil.
Revenue was 1086 + 1282 + 1081 + 1211 = $4,660 Mil.
Gross Profit was 441 + 601 + 491 + 581 = $2,114 Mil.
Total Current Assets was $2,195 Mil.
Total Assets was $30,979 Mil.
Property, Plant and Equipment(Net PPE) was $26,565 Mil.
Depreciation, Depletion and Amortization(DDA) was $585 Mil.
Selling, General & Admin. Expense(SGA) was $245 Mil.
Total Current Liabilities was $1,068 Mil.
Long-Term Debt was $783 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)
=(701 / 3687) / (642 / 4660)
=0.19012747 / 0.13776824
=1.3801

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)
=(234 / 4660) / (287 / 3687)
=0.45364807 / 0.28803906
=1.575

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 - (2374 + 25138) / 29564) / (1 - (2195 + 26565) / 30979)
=0.06940874 / 0.07162917
=0.969

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
=3687 / 4660
=0.7912

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))
=(585 / (585 + 26565)) / (634 / (634 + 25138))
=0.02154696 / 0.02460034
=0.8759

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)
=(242 / 3687) / (245 / 4660)
=0.06563602 / 0.05257511
=1.2484

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)
=((1482 + 2033) / 29564) / ((783 + 1068) / 30979)
=0.1188946 / 0.05975015
=1.9899

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
=(-2709 - -32 - 955) / 29564
=-0.1229

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.

Goldcorp Inc has a M-score of -2.98 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.

Goldcorp Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 3.01710.85270.45092.28760.89551.46751.24240.5711.64891.3801
GMI 1.0270.98551.05991.09811.81650.84280.83510.90681.07961.575
AQI 1.13795.56161.38610.5641.01731.02981.59710.71760.97280.969
SGI 0.72724.69321.90761.29051.09641.12561.37241.43450.86910.7912
DEPI 1.39351.72122.06960.78050.94541.00111.12410.90591.29440.8759
SGAI 1.69450.60350.99111.24070.93810.8651.00730.86761.2311.2175
LVGI 0.39731.2351.48931.0250.36112.68280.83980.83471.22811.9899
TATA 0.0098-0.0507-0.0308-0.0136-0.0336-0.0353-0.0016-0.0287-0.0101-0.1226
M-score -0.632.35-2.17-1.30-2.00-2.70-1.71-2.72-2.10-2.97

Goldcorp Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.80910.79581.77481.09932.83691.1830.54410.80080.62551.3801
GMI 2.24790.37960.46760.53790.54741.1931.26431.43931.50861.575
AQI 0.59610.71760.84830.81921.78540.97280.88260.86330.88020.969
SGI 1.61661.02920.9070.75890.69171.21131.16191.18671.09650.7912
DEPI 1.0050.61520.66780.74910.73171.90611.83741.56951.54330.8759
SGAI 0.78610.90830.99551.08521.22981.17591.10591.13441.22241.2484
LVGI 0.7460.83470.95131.13151.21471.22811.89922.11671.92581.9899
TATA -0.0171-0.0735-0.062-0.0725-0.0539-0.0101-0.013-0.0736-0.0883-0.1229
M-score -1.57-3.40-2.50-3.35-1.38-2.08-2.94-2.99-3.21-2.98
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
Hide