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Goldcorp Inc (NYSE:GG)
Beneish M-Score
-3.58 (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 -3.63 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: -3.58

-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 -2.41.


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 * 0.8092+0.528 * 1.4671+0.404 * 0.638+0.892 * 1.2101+0.115 * 0.5083
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7318+4.679 * -0.2657-0.327 * 1.0379
=-3.63

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $519 Mil.
Revenue was 944 + 1072 + 1098 + 1188 = $4,302 Mil.
Gross Profit was 145 + -11 + 46 + 192 = $372 Mil.
Total Current Assets was $1,520 Mil.
Total Assets was $21,506 Mil.
Property, Plant and Equipment(Net PPE) was $19,432 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,442 Mil.
Selling, General & Admin. Expense(SGA) was $209 Mil.
Total Current Liabilities was $875 Mil.
Long-Term Debt was $2,993 Mil.
Net Income was 80 + -4271 + -192 + 392 = $-3,991 Mil.
Non Operating Income was -17 + -103 + -12 + 425 = $293 Mil.
Cash Flow from Operations was 59 + 401 + 443 + 528 = $1,431 Mil.
Accounts Receivable was $530 Mil.
Revenue was 1017 + 773 + 859 + 906 = $3,555 Mil.
Gross Profit was 75 + 18 + 137 + 221 = $451 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.



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)
=(519 / 4302) / (530 / 3555)
=0.12064156 / 0.14908579
=0.8092

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)
=(-11 / 3555) / (145 / 4302)
=0.12686357 / 0.08647141
=1.4671

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 - (1520 + 19432) / 21506) / (1 - (2015 + 24866) / 28012)
=0.02576025 / 0.04037555
=0.638

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
=4302 / 3555
=1.2101

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))
=(905 / (905 + 24866)) / (1442 / (1442 + 19432))
=0.03511699 / 0.06908115
=0.5083

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)
=(209 / 4302) / (236 / 3555)
=0.04858205 / 0.06638537
=0.7318

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)
=((2993 + 875) / 21506) / ((3670 + 1184) / 28012)
=0.17985678 / 0.17328288
=1.0379

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
=(-3991 - 293 - 1431) / 21506
=-0.2657

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 -3.63 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.46771.78681.05431.1571.36760.75531.48720.96960.90150.6897
GMI 1.05991.09811.09431.3990.82970.91271.09851.54781.63862.5466
AQI 1.38610.5641.01731.02981.01091.16110.98450.9350.6072.7327
SGI 1.90761.29051.09641.12561.39511.41111.01360.67840.93191.2733
DEPI 2.06910.78050.94541.00111.18250.86181.11651.01470.82650.3812
SGAI 0.91771.24070.93810.89420.92250.91631.05551.41991.12310.6582
LVGI 1.48931.0250.36112.68280.89070.83041.22191.89531.47841.0068
TATA -0.0308-0.0136-0.0313-0.0344-0.0192-0.028-0.0142-0.1226-0.112-0.2741
M-score -2.14-1.76-2.22-2.69-1.89-2.40-2.11-3.47-3.17-2.30

Goldcorp Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.96961.50121.43451.36220.90151.11580.95440.73030.68970.8092
GMI 1.54781.62371.39361.29131.63862.0492.45883.05672.54661.4671
AQI 0.9351.0081.01751.06730.6070.59140.6170.59422.73270.638
SGI 0.67840.69990.73550.8240.93190.99581.06971.15891.27331.2101
DEPI 1.01470.95781.04210.96490.82650.71720.59280.52090.38120.5083
SGAI 1.4561.44681.32081.13171.09520.97930.90340.80040.65820.7318
LVGI 1.89531.28871.26771.18411.47841.2591.09660.96391.00681.0379
TATA -0.1229-0.1248-0.0601-0.0595-0.112-0.1097-0.1265-0.1451-0.2741-0.2657
M-score -3.48-2.71-2.52-2.49-3.17-2.62-2.50-2.35-2.30-3.63
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