Switch to:
Goldcorp Inc (NYSE:GG)
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.

Goldcorp Inc has a M-score of -3.32 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -6.82   Max: 6.51
Current: -3.14

-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 -2.39.


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 * 1.1158+0.528 * 0.7139+0.404 * 0.5914+0.892 * 0.9958+0.115 * 0.7172
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9793+4.679 * -0.1097-0.327 * 1.259
=-3.32

* 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 898 + 854 + 929 + 889 = $3,570 Mil.
Gross Profit was 228 + -191 + 397 + 179 = $613 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 $654 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 / 3570)
=0.14908579 / 0.13361345
=1.1158

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 / 3570) / (75 / 3555)
=0.17170868 / 0.24050633
=0.7139

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 / 3570
=0.9958

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))
=(654 / (654 + 25312)) / (905 / (905 + 24866))
=0.02518678 / 0.03511699
=0.7172

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 / 3570)
=0.06638537 / 0.06778711
=0.9793

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 -3.32 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 2.22340.46771.78681.05431.1571.36760.75531.48720.96960.9015
GMI 0.98551.05991.09811.81650.84280.82970.91271.09851.54780.7293
AQI 5.56161.38610.5641.01731.02981.01091.16110.98450.9350.607
SGI 4.69321.90761.29051.09641.12561.39511.41111.01360.67840.9319
DEPI 1.72122.06960.78050.94541.00111.18250.86181.11651.01470.8265
SGAI 0.60350.99111.24070.93810.89420.92250.91631.05551.41991.1231
LVGI 1.2351.48931.0250.36112.68280.89070.83041.22191.89531.4784
TATA -0.0507-0.0308-0.0136-0.0336-0.0343-0.0192-0.028-0.0142-0.1226-0.112
M-score 3.61-2.15-1.76-1.85-2.99-1.89-2.40-2.11-3.47-3.65

Goldcorp Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.48720.70781.07890.58740.96961.50121.43451.36220.90151.1158
GMI 0.63430.68170.73350.59821.91712.10191.71351.44730.69060.7139
AQI 0.98450.88260.86330.88020.9351.0081.01751.06730.6070.5914
SGI 1.01360.92830.92280.77390.67840.69990.73550.8240.93190.9958
DEPI 1.11651.12860.97981.03561.01470.95781.04210.96490.82650.7172
SGAI 1.05551.05951.11091.32911.4561.44681.32081.13171.09520.9793
LVGI 1.22191.89922.11671.92581.89531.28871.26771.18411.47841.259
TATA -0.0142-0.0175-0.0771-0.0918-0.1229-0.1248-0.0601-0.0595-0.112-0.1097
M-score -2.35-3.40-3.42-4.11-3.28-2.46-2.35-2.41-3.67-3.32
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)

GuruFocus Premium Plus Membership

FEEDBACK