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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 -2.42 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Goldcorp Inc was 3.89. The lowest was -6.82. And the median was -2.41.
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 * 1.4251||+||0.528 * 1.3759||+||0.404 * 1.0175||+||0.892 * 0.8561||+||0.115 * 0.9325|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1632||+||4.679 * -0.0601||-||0.327 * 1.2677|
|This Year (Jun14) TTM:||Last Year (Jun13) TTM:|
|Accounts Receivable was $560 Mil.|
Revenue was 906 + 898 + 854 + 929 = $3,587 Mil.
Gross Profit was 221 + 228 + 287 + 234 = $970 Mil.
Total Current Assets was $2,812 Mil.
Total Assets was $30,618 Mil.
Property, Plant and Equipment(Net PPE) was $25,783 Mil.
Depreciation, Depletion and Amortization(DDA) was $668 Mil.
Selling, General & Admin. Expense(SGA) was $238 Mil.
Total Current Liabilities was $2,009 Mil.
Long-Term Debt was $2,471 Mil.
Net Income was 181 + 98 + -1089 + 5 = $-805 Mil.
Non Operating Income was 11 + -7 + -102 + 3 = $-95 Mil.
Cash Flow from Operations was 275 + 273 + 307 + 274 = $1,129 Mil.
|Accounts Receivable was $459 Mil.
Revenue was 858 + 964 + 1086 + 1282 = $4,190 Mil.
Gross Profit was 173 + 344 + 441 + 601 = $1,559 Mil.
Total Current Assets was $2,994 Mil.
Total Assets was $30,029 Mil.
Property, Plant and Equipment(Net PPE) was $25,085 Mil.
Depreciation, Depletion and Amortization(DDA) was $605 Mil.
Selling, General & Admin. Expense(SGA) was $239 Mil.
Total Current Liabilities was $1,179 Mil.
Long-Term Debt was $2,287 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(560 / 3587)||/||(459 / 4190)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(228 / 4190)||/||(221 / 3587)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (2812 + 25783) / 30618)||/||(1 - (2994 + 25085) / 30029)|
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.
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))|
|=||(605 / (605 + 25085))||/||(668 / (668 + 25783))|
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)|
|=||(238 / 3587)||/||(239 / 4190)|
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)|
|=||((2471 + 2009) / 30618)||/||((2287 + 1179) / 30029)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-805 - -95||-||1129)||/||30618|
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 -2.42 suggests that the company will not be a manipulator.
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
Goldcorp Inc Annual Data
Goldcorp Inc Quarterly Data