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Goldcorp Inc (NYSE:GG)
Beneish M-Score
-2.73 (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 -2.92 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -6.82   Max: 6.51
Current: -2.73

-6.82
6.51

During the past 13 years, the highest Beneish M-Score of Goldcorp Inc was 6.51. The lowest was -6.82. And the median was -2.50.


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 * 1.1011+0.528 * 1.467+0.404 * 0.5914+0.892 * 1.0091+0.115 * 0.7183
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9664+4.679 * -0.1097-0.327 * 1.259
=-2.92

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $530 Mil.
Revenue was 1017 + 773 + 859 + 906 = $3,555 Mil.
Gross Profit was 75 + 230 + 329 + 221 = $855 Mil.
Total Current Assets was $2,015 Mil.
Total Assets was $28,012 Mil.
Property, Plant and Equipment(Net PPE) was $24,866 Mil.
Depreciation, Depletion and Amortization(DDA) was $905 Mil.
Selling, General & Admin. Expense(SGA) was $236 Mil.
Total Current Liabilities was $1,184 Mil.
Long-Term Debt was $3,670 Mil.
Net Income was -87 + -2396 + -44 + 181 = $-2,346 Mil.
Non Operating Income was -24 + -55 + -4 + 11 = $-72 Mil.
Cash Flow from Operations was 58 + 274 + 192 + 275 = $799 Mil.
Accounts Receivable was $477 Mil.
Revenue was 878 + 892 + 895 + 858 = $3,523 Mil.
Gross Profit was 222 + 462 + 386 + 173 = $1,243 Mil.
Total Current Assets was $2,803 Mil.
Total Assets was $30,175 Mil.
Property, Plant and Equipment(Net PPE) was $25,312 Mil.
Depreciation, Depletion and Amortization(DDA) was $655 Mil.
Selling, General & Admin. Expense(SGA) was $242 Mil.
Total Current Liabilities was $2,671 Mil.
Long-Term Debt was $1,482 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)
=(530 / 3555) / (477 / 3523)
=0.14908579 / 0.13539597
=1.1011

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)
=(230 / 3523) / (75 / 3555)
=0.3528243 / 0.24050633
=1.467

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 - (2015 + 24866) / 28012) / (1 - (2803 + 25312) / 30175)
=0.04037555 / 0.06826843
=0.5914

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
=3555 / 3523
=1.0091

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))
=(655 / (655 + 25312)) / (905 / (905 + 24866))
=0.02522432 / 0.03511699
=0.7183

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)
=(236 / 3555) / (242 / 3523)
=0.06638537 / 0.06869146
=0.9664

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)
=((3670 + 1184) / 28012) / ((1482 + 2671) / 30175)
=0.17328288 / 0.13763049
=1.259

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
=(-2346 - -72 - 799) / 28012
=-0.1097

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 -2.92 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 2.22340.46771.78681.05431.38681.16040.74271.37931.0680.8824
GMI 0.98551.05991.09811.81650.84280.83510.90681.07960.98041.1717
AQI 5.56161.38610.5641.01731.02981.59710.73490.94990.9690.607
SGI 4.69321.90761.29051.09641.12561.37241.43450.86910.77450.9521
DEPI 1.72122.06960.78050.94541.00111.12410.90661.29340.88130.8214
SGAI 0.60350.99111.24070.93810.8651.00730.86761.2311.24381.0993
LVGI 1.2351.48931.0250.36112.68280.83980.88081.16392.00571.4667
TATA -0.0507-0.0308-0.0136-0.0336-0.0353-0.0016-0.028-0.0101-0.1227-0.112
M-score 3.61-2.15-1.76-1.85-2.78-1.79-2.57-2.33-3.60-3.41

Goldcorp Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.37930.79761.21540.60831.0681.31611.2381.20760.88751.1011
GMI 1.08531.17151.36441.69981.03771.02250.8410.67491.28941.467
AQI 0.94990.88260.86330.88020.9691.0081.01751.06730.6070.5914
SGI 0.86910.82380.81920.74730.77450.79830.85230.92950.94651.0091
DEPI 1.29341.24591.05151.0420.88130.84550.92580.87620.82250.7183
SGAI 1.2311.1641.22081.34361.24381.3011.16841.02771.10570.9664
LVGI 1.16391.89922.11671.92582.00571.28871.26771.18411.46671.259
TATA -0.0101-0.0128-0.0734-0.0881-0.1227-0.1248-0.0601-0.0596-0.112-0.1097
M-score -2.33-3.13-3.05-3.51-3.57-3.10-2.88-2.85-3.35-2.92
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