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Goldcorp Inc (NYSE:GG)
Beneish M-Score
-2.36 (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 -2.41 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -6.82   Max: 6.51
Current: -2.36

-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 -2.38.


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 * 1.3622+0.528 * 1.4473+0.404 * 1.0673+0.892 * 0.824+0.115 * 0.9649
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1317+4.679 * -0.0595-0.327 * 1.1841
=-2.41

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $449 Mil.
Revenue was 859 + 906 + 898 + 854 = $3,517 Mil.
Gross Profit was 329 + 221 + 228 + -191 = $587 Mil.
Total Current Assets was $2,068 Mil.
Total Assets was $30,218 Mil.
Property, Plant and Equipment(Net PPE) was $26,078 Mil.
Depreciation, Depletion and Amortization(DDA) was $697 Mil.
Selling, General & Admin. Expense(SGA) was $235 Mil.
Total Current Liabilities was $1,664 Mil.
Long-Term Debt was $2,472 Mil.
Net Income was -44 + 181 + 98 + -1089 = $-854 Mil.
Non Operating Income was -4 + 11 + -7 + -102 = $-102 Mil.
Cash Flow from Operations was 192 + 275 + 273 + 307 = $1,047 Mil.
Accounts Receivable was $400 Mil.
Revenue was 929 + 889 + 1015 + 1435 = $4,268 Mil.
Gross Profit was 397 + 179 + 362 + 93 = $1,031 Mil.
Total Current Assets was $2,667 Mil.
Total Assets was $29,933 Mil.
Property, Plant and Equipment(Net PPE) was $25,343 Mil.
Depreciation, Depletion and Amortization(DDA) was $653 Mil.
Selling, General & Admin. Expense(SGA) was $252 Mil.
Total Current Liabilities was $1,979 Mil.
Long-Term Debt was $1,481 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)
=(449 / 3517) / (400 / 4268)
=0.12766562 / 0.09372071
=1.3622

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)
=(221 / 4268) / (329 / 3517)
=0.24156514 / 0.16690361
=1.4473

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 - (2068 + 26078) / 30218) / (1 - (2667 + 25343) / 29933)
=0.0685684 / 0.06424348
=1.0673

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
=3517 / 4268
=0.824

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))
=(653 / (653 + 25343)) / (697 / (697 + 26078))
=0.02511925 / 0.02603175
=0.9649

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)
=(235 / 3517) / (252 / 4268)
=0.06681831 / 0.05904405
=1.1317

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)
=((2472 + 1664) / 30218) / ((1481 + 1979) / 29933)
=0.13687206 / 0.11559149
=1.1841

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
=(-854 - -102 - 1047) / 30218
=-0.0595

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 -2.41 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.11552.22340.46771.78681.05431.1571.36760.75531.48720.9696
GMI 1.0270.98551.05991.09811.81650.84280.82970.91271.09851.5478
AQI 1.13795.56161.38610.5641.01731.02981.01091.16110.98450.935
SGI 0.72724.69321.90761.29051.09641.12561.39511.41111.01360.6784
DEPI 1.39351.72122.06960.78050.94541.00111.18250.86181.11651.0147
SGAI 1.69450.60350.99111.24070.93810.89420.92250.91631.05551.4199
LVGI 0.39731.2351.48931.0250.36112.68280.89070.83041.22191.8953
TATA 0.0098-0.0507-0.0308-0.0136-0.0336-0.0343-0.0192-0.028-0.0142-0.1226
M-score -2.383.61-2.15-1.76-1.85-2.99-1.89-2.40-2.11-3.47

Goldcorp Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.79642.13571.48720.70781.07890.58740.96961.50121.43451.3622
GMI 2.06844.23490.63430.68170.73350.59821.91712.10191.71351.4473
AQI 0.81921.78540.98450.88260.86330.88020.9351.0081.01751.0673
SGI 1.1141.06751.01360.92830.92280.77390.67840.69990.73550.824
DEPI 1.1081.0391.11651.12860.97981.03561.01470.95781.04210.9649
SGAI 0.99331.01151.05551.05951.11091.32911.4561.44681.32081.1317
LVGI 1.13151.21471.22191.89922.11671.92581.89531.28871.26771.1841
TATA -0.0292-0.0117-0.0142-0.0175-0.0771-0.0918-0.1229-0.1248-0.0601-0.0595
M-score -2.240.53-2.35-3.40-3.42-4.11-3.28-2.46-2.35-2.41
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