Switch to:
Goldcorp Inc (NYSE:GG)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -6.82   Max: 6.55
Current: -2.65

-6.82
6.55

During the past 13 years, the highest Beneish M-Score of Goldcorp Inc was 6.55. The lowest was -6.82. And the median was -2.42.


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 * 1.4345+0.528 * 1.1571+0.404 * 1.0175+0.892 * 0.7355+0.115 * 1.0421
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3208+4.679 * -0.0601-0.327 * 1.2677
=-2.65

* 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 $479 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 $454 Mil.
Revenue was 889 + 1015 + 1435 + 1538 = $4,877 Mil.
Gross Profit was 179 + 362 + 93 + 892 = $1,526 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 $678 Mil.
Selling, General & Admin. Expense(SGA) was $245 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)
=(479 / 3587) / (454 / 4877)
=0.13353778 / 0.09309001
=1.4345

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 / 4877) / (221 / 3587)
=0.31289727 / 0.27042096
=1.1571

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 / 4877
=0.7355

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))
=(678 / (678 + 25085)) / (668 / (668 + 25783))
=0.02631681 / 0.02525424
=1.0421

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) / (245 / 4877)
=0.06635071 / 0.0502358
=1.3208

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 -2.65 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 own currency.

Goldcorp Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.11552.22520.46731.78681.05431.1571.36760.75531.48720.9696
GMI 1.0270.98561.05991.09811.09431.3990.82970.91271.09851.5478
AQI 1.13795.45481.41320.5641.01561.03151.01091.16110.98450.935
SGI 0.72724.69321.90761.29051.09641.12561.39511.41111.01360.6784
DEPI 1.39351.72162.06910.78050.94581.00071.18250.86181.11651.0147
SGAI 1.69450.65170.91771.24070.93810.89420.92250.91631.05551.4199
LVGI 0.39731.2351.48921.0250.35312.74410.89070.83041.22191.8953
TATA 0.0098-0.0515-0.0308-0.0136-0.0313-0.0343-0.0192-0.028-0.0142-0.1226
M-score -2.383.56-2.13-1.76-2.22-2.71-1.89-2.40-2.11-3.47

Goldcorp Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.3860.79642.13571.48720.70781.07890.58740.96961.50121.4345
GMI 1.88832.06844.23490.63430.68170.73350.71061.34851.38841.1571
AQI 0.84830.81921.78540.98450.88260.86330.88020.9351.0081.0175
SGI 1.28821.1141.06751.01360.92830.92280.77390.67840.69990.7355
DEPI 0.9941.1081.0391.11651.12860.97981.03561.01470.95781.0421
SGAI 0.9460.99331.01151.05551.05951.11091.32911.4561.44681.3208
LVGI 0.95131.13151.21471.22191.89922.11671.92581.89531.28871.2677
TATA -0.0171-0.0292-0.0117-0.0142-0.0175-0.0771-0.0918-0.1229-0.1248-0.0601
M-score -1.52-2.240.53-2.35-3.40-3.42-4.05-3.58-2.84-2.65
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK