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Goldcorp Inc (NYSE:GG)
Beneish M-Score
-3.67 (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 -3.00 suggests that the company is not a manipulator.

GG' s Beneish M-Score Range Over the Past 10 Years
Min: -6.81   Max: 6.51
Current: -3.67

-6.81
6.51

During the past 13 years, the highest Beneish M-Score of Goldcorp Inc was 6.51. The lowest was -6.81. And the median was -2.46.


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 * 0.6897+0.528 * 2.5466+0.404 * 0.9838+0.892 * 1.2733+0.115 * 0.4155
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6582+4.679 * -0.2741-0.327 * 1.0025
=-3.00

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $346 Mil.
Revenue was $4,375 Mil.
Gross Profit was $302 Mil.
Total Current Assets was $1,331 Mil.
Total Assets was $21,428 Mil.
Property, Plant and Equipment(Net PPE) was $17,630 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,493 Mil.
Selling, General & Admin. Expense(SGA) was $207 Mil.
Total Current Liabilities was $1,049 Mil.
Long-Term Debt was $2,743 Mil.
Net Income was $-4,158 Mil.
Non Operating Income was $286 Mil.
Cash Flow from Operations was $1,430 Mil.
Accounts Receivable was $394 Mil.
Revenue was $3,436 Mil.
Gross Profit was $604 Mil.
Total Current Assets was $2,147 Mil.
Total Assets was $27,866 Mil.
Property, Plant and Equipment(Net PPE) was $22,458 Mil.
Depreciation, Depletion and Amortization(DDA) was $753 Mil.
Selling, General & Admin. Expense(SGA) was $247 Mil.
Total Current Liabilities was $1,456 Mil.
Long-Term Debt was $3,463 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)
=(346 / 4375) / (394 / 3436)
=0.07908571 / 0.11466822
=0.6897

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)
=(604 / 3436) / (302 / 4375)
=0.1757858 / 0.06902857
=2.5466

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 - (1331 + 17630) / 21428) / (1 - (2147 + 22458) / 27866)
=0.11512974 / 0.11702433
=0.9838

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
=4375 / 3436
=1.2733

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))
=(753 / (753 + 22458)) / (1493 / (1493 + 17630))
=0.03244151 / 0.07807352
=0.4155

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)
=(207 / 4375) / (247 / 3436)
=0.04731429 / 0.07188591
=0.6582

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)
=((2743 + 1049) / 21428) / ((3463 + 1456) / 27866)
=0.17696472 / 0.17652336
=1.0025

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
=(-4158 - 286 - 1430) / 21428
=-0.2741

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 -3.00 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 local exchange's currency.

Goldcorp Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.46771.78681.05431.38781.15950.63281.61891.0680.88240.6897
GMI 1.05991.09811.81650.84280.83510.90681.07961.57421.63932.5466
AQI 1.38610.5641.01731.06811.53980.71760.97280.9691.6860.9838
SGI 1.90761.29051.09641.12561.37241.43450.86910.77450.95211.2733
DEPI 2.06960.78050.94540.9631.16860.90591.29440.88130.75360.4155
SGAI 0.99111.24070.8990.90261.00730.86761.2311.24381.09930.6582
LVGI 1.48931.0250.36112.45960.9160.83471.22812.00571.4731.0025
TATA -0.0308-0.0136-0.036-0.0365-0.0016-0.0282-0.0101-0.1227-0.112-0.2741
M-score -2.15-1.76-1.85-2.70-1.83-2.66-2.12-3.29-2.74-3.00
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