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Goldcorp Inc (NYSE:GG)
Beneish M-Score
-2.05 (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 -2.28 suggests that the company is not a manipulator.

GG' s Beneish M-Score Range Over the Past 10 Years
Min: -6.82   Max: 6.51
Current: -2.05

-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 -2.41.


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 * 0.6665+0.528 * 2.2964+0.404 * 0.5942+0.892 * 1.2699+0.115 * 0.5256
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.666+4.679 * -0.0584-0.327 * 0.9639
=-2.28

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $380 Mil.
Revenue was 1098 + 1188 + 1017 + 0 = $3,303 Mil.
Gross Profit was 46 + 192 + 75 + 0 = $313 Mil.
Total Current Assets was $1,513 Mil.
Total Assets was $27,023 Mil.
Property, Plant and Equipment(Net PPE) was $24,409 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,287 Mil.
Selling, General & Admin. Expense(SGA) was $159 Mil.
Total Current Liabilities was $1,043 Mil.
Long-Term Debt was $2,522 Mil.
Net Income was -192 + 392 + -87 + 0 = $113 Mil.
Non Operating Income was -12 + 425 + -24 + 0 = $389 Mil.
Cash Flow from Operations was 443 + 528 + 58 + 274 = $1,303 Mil.
Accounts Receivable was $449 Mil.
Revenue was 839 + 884 + 878 + 0 = $2,601 Mil.
Gross Profit was 132 + 212 + 222 + 0 = $566 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 $705 Mil.
Selling, General & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $1,664 Mil.
Long-Term Debt was $2,472 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)
=(380 / 3303) / (449 / 2601)
=0.11504693 / 0.17262591
=0.6665

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)
=(192 / 2601) / (46 / 3303)
=0.21760861 / 0.09476234
=2.2964

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 - (1513 + 24409) / 27023) / (1 - (2068 + 26078) / 30218)
=0.04074307 / 0.0685684
=0.5942

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
=3303 / 2601
=1.2699

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))
=(705 / (705 + 26078)) / (1287 / (1287 + 24409))
=0.02632267 / 0.05008562
=0.5256

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)
=(159 / 3303) / (188 / 2601)
=0.04813806 / 0.07227989
=0.666

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)
=((2522 + 1043) / 27023) / ((2472 + 1664) / 30218)
=0.13192466 / 0.13687206
=0.9639

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
=(113 - 389 - 1303) / 27023
=-0.0584

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 -2.28 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 2.22340.46771.78681.05431.38681.16040.74271.37931.0680.8824
GMI 0.98551.05991.09811.81650.84280.83510.90681.07961.57421.6393
AQI 5.56161.38610.5641.01731.02981.59710.73490.94990.9690.607
SGI 4.69321.90761.29051.09641.12561.37241.43450.86910.77450.9521
DEPI 1.72122.06960.78050.94541.00111.12410.90661.29340.88130.8214
SGAI 0.60350.99111.24070.93810.8651.00730.86761.2311.24381.0993
LVGI 1.2351.48931.0250.36112.68280.83980.88081.16392.00571.4667
TATA -0.0507-0.0308-0.0136-0.0336-0.0353-0.0016-0.028-0.0101-0.1227-0.112
M-score 3.61-2.15-1.76-1.85-2.78-1.79-2.57-2.33-3.29-3.17

Goldcorp Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.15470.59791.08811.32861.23261.17260.87761.06690.89110.6665
GMI 1.3551.70721.70721.82281.44561.26011.26011.54851.90082.2964
AQI 0.86330.88020.9691.0081.01751.06730.6070.59140.6170.5942
SGI 0.86220.76020.76020.79080.8560.95730.95731.04141.14571.2699
DEPI 1.05151.0420.88130.84550.92710.87860.82140.71750.59520.5256
SGAI 1.15981.32241.32241.40111.2261.03911.03910.87160.78150.666
LVGI 2.11671.92582.00571.28871.26771.18411.46671.2591.09660.9639
TATA -0.0859-0.1006-0.0893-0.0921-0.0278-0.0269-0.028-0.0261-0.0426-0.0584
M-score -3.12-3.56-3.07-2.54-2.42-2.40-2.96-2.47-2.37-2.28
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