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Goldcorp Inc (NYSE:GG)
Beneish M-Score
-2.42 (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 -2.42 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -8.66   Max: 3.95
Current: -2.42

-8.66
3.95

During the past 13 years, the highest Beneish M-Score of Goldcorp Inc was 3.95. The lowest was -8.66. And the median was -2.40.


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 * 1.4251+0.528 * 1.3759+0.404 * 1.0175+0.892 * 0.8561+0.115 * 0.9325
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1632+4.679 * -0.0601-0.327 * 1.2677
=-2.42

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $560 Mil.
Revenue was 906 + 898 + 854 + 929 = $3,587 Mil.
Gross Profit was 221 + 228 + 287 + 234 = $970 Mil.
Total Current Assets was $2,812 Mil.
Total Assets was $30,618 Mil.
Property, Plant and Equipment(Net PPE) was $25,783 Mil.
Depreciation, Depletion and Amortization(DDA) was $668 Mil.
Selling, General & Admin. Expense(SGA) was $238 Mil.
Total Current Liabilities was $2,009 Mil.
Long-Term Debt was $2,471 Mil.
Net Income was 181 + 98 + -1089 + 5 = $-805 Mil.
Non Operating Income was 11 + -7 + -102 + 3 = $-95 Mil.
Cash Flow from Operations was 275 + 273 + 307 + 274 = $1,129 Mil.
Accounts Receivable was $459 Mil.
Revenue was 858 + 964 + 1086 + 1282 = $4,190 Mil.
Gross Profit was 173 + 344 + 441 + 601 = $1,559 Mil.
Total Current Assets was $2,994 Mil.
Total Assets was $30,029 Mil.
Property, Plant and Equipment(Net PPE) was $25,085 Mil.
Depreciation, Depletion and Amortization(DDA) was $605 Mil.
Selling, General & Admin. Expense(SGA) was $239 Mil.
Total Current Liabilities was $1,179 Mil.
Long-Term Debt was $2,287 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)
=(560 / 3587) / (459 / 4190)
=0.15611932 / 0.10954654
=1.4251

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)
=(228 / 4190) / (221 / 3587)
=0.37207637 / 0.27042096
=1.3759

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 - (2812 + 25783) / 30618) / (1 - (2994 + 25085) / 30029)
=0.06607225 / 0.06493723
=1.0175

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
=3587 / 4190
=0.8561

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))
=(605 / (605 + 25085)) / (668 / (668 + 25783))
=0.02355002 / 0.02525424
=0.9325

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)
=(238 / 3587) / (239 / 4190)
=0.06635071 / 0.05704057
=1.1632

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)
=((2471 + 2009) / 30618) / ((2287 + 1179) / 30029)
=0.14631916 / 0.11542176
=1.2677

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
=(-805 - -95 - 1129) / 30618
=-0.0601

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 -2.42 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 3.01680.85310.45072.28760.89551.23971.56840.6191.42611.3801
GMI 1.0410.96371.05991.09811.09431.3990.82970.91271.07961.575
AQI 1.13795.45481.41320.5641.01561.03151.01091.16110.94990.969
SGI 0.72734.69281.90761.29051.09641.12561.39511.41110.86910.7912
DEPI 1.47981.62132.06910.78050.94581.00071.18250.86181.29340.8759
SGAI 1.5870.72110.91771.24070.93810.89420.92250.91631.2311.2175
LVGI 0.39731.2351.48921.0250.35312.74410.89070.83041.16391.9899
TATA 0.01-0.0515-0.0308-0.0136-0.0313-0.0343-0.0192-0.028-0.0101-0.1226
M-score -0.592.26-2.14-1.30-2.36-2.64-1.71-2.52-2.29-2.97

Goldcorp Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.28180.77371.99221.42610.76751.16010.90971.41141.67891.4251
GMI 1.09931.14431.41940.9390.99361.1151.1861.57551.63261.3759
AQI 0.84830.81921.78540.94990.88260.86330.88020.9691.0081.0175
SGI 1.25591.07820.9850.86910.82380.81920.7540.77360.80190.8561
DEPI 1.01851.15381.12161.29341.24591.05151.03360.88960.85190.9325
SGAI 0.97041.02631.09621.2311.1641.22081.33171.24521.29511.1632
LVGI 0.95131.13151.21471.16391.89922.11671.92581.98991.28871.2677
TATA -0.0177-0.0284-0.0109-0.0101-0.0128-0.0734-0.0881-0.1226-0.1248-0.0601
M-score -2.06-2.78-1.17-2.36-3.26-3.23-3.50-2.96-2.44-2.42
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