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Goldcorp Inc (NYSE:GG)
Beneish M-Score
-3.67 (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 -3.65 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: -3.67

-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 -2.46.


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 * 0.3251+0.528 * 1.1121+0.404 * 2.7106+0.892 * 0.8903+0.115 * 0.796
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.015+4.679 * -0.2348-0.327 * 1.2494
=-3.65

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $110 Mil.
Revenue was 915 + 753 + 944 + 1072 = $3,684 Mil.
Gross Profit was 125 + 22 + 145 + -11 = $281 Mil.
Total Current Assets was $1,465 Mil.
Total Assets was $21,587 Mil.
Property, Plant and Equipment(Net PPE) was $17,738 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,191 Mil.
Selling, General & Admin. Expense(SGA) was $197 Mil.
Total Current Liabilities was $830 Mil.
Long-Term Debt was $2,728 Mil.
Net Income was 59 + -78 + 80 + -4271 = $-4,210 Mil.
Non Operating Income was 6 + 12 + -17 + -103 = $-102 Mil.
Cash Flow from Operations was 267 + 234 + 59 + 401 = $961 Mil.
Accounts Receivable was $380 Mil.
Revenue was 1098 + 1188 + 1017 + 835 = $4,138 Mil.
Gross Profit was 46 + 192 + 75 + 38 = $351 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 $218 Mil.
Total Current Liabilities was $1,043 Mil.
Long-Term Debt was $2,522 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)
=(110 / 3684) / (380 / 4138)
=0.02985885 / 0.0918318
=0.3251

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)
=(351 / 4138) / (281 / 3684)
=0.08482359 / 0.07627579
=1.1121

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 - (1465 + 17738) / 21587) / (1 - (1513 + 24409) / 27023)
=0.11043684 / 0.04074307
=2.7106

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
=3684 / 4138
=0.8903

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))
=(1287 / (1287 + 24409)) / (1191 / (1191 + 17738))
=0.05008562 / 0.06291933
=0.796

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)
=(197 / 3684) / (218 / 4138)
=0.05347448 / 0.05268246
=1.015

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)
=((2728 + 830) / 21587) / ((2522 + 1043) / 27023)
=0.16482142 / 0.13192466
=1.2494

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
=(-4210 - -102 - 961) / 21587
=-0.2348

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 -3.65 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 local exchange's currency.

Goldcorp Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.46771.78681.05431.38781.15950.63281.61891.0680.88240.6897
GMI 1.05991.09811.81650.84280.83510.90681.07961.57421.63932.5466
AQI 1.38610.5641.01731.06811.53980.71760.97280.9691.6860.9838
SGI 1.90761.29051.09641.12561.37241.43450.86910.77450.95211.2733
DEPI 2.06960.78050.94540.9631.16860.90591.29440.88130.75360.4155
SGAI 0.99111.24070.8990.90261.00730.86761.2311.24381.09930.6582
LVGI 1.48931.0250.36112.45960.9160.83471.22812.00571.4731.0025
TATA -0.0308-0.0136-0.036-0.0365-0.0016-0.0282-0.0101-0.1227-0.112-0.2741
M-score -2.15-1.76-1.85-2.70-1.83-2.66-2.12-3.29-2.74-3.00

Goldcorp Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.24561.22210.88241.09490.9340.71440.68970.81380.82050.3251
GMI 1.37981.26521.63932.03842.39362.90592.54661.47832.15671.1121
AQI 1.01751.06731.6860.59140.6170.59420.98380.6380.60892.7106
SGI 0.8470.91850.95211.01481.0931.18471.27331.20340.99690.8903
DEPI 0.92710.87860.75360.71750.59520.52560.41550.50890.67150.796
SGAI 1.17571.04011.09930.9610.88420.78310.65820.73590.89841.015
LVGI 1.26771.18411.4731.2591.09660.96391.00251.03791.07971.2494
TATA -0.0601-0.0596-0.112-0.1097-0.1265-0.1451-0.2741-0.2657-0.2575-0.2348
M-score -2.59-2.54-2.74-2.62-2.53-2.42-3.00-3.63-3.45-3.65
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