Switch to:
Goldcorp Inc (NYSE:GG)
Beneish M-Score
-3.27 (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 -3.35 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -5.85   Max: 3.38
Current: -3.27

-5.85
3.38

During the past 13 years, the highest Beneish M-Score of Goldcorp Inc was 3.38. The lowest was -5.85. And the median was -2.58.


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 * 0.8824+0.528 * 1.2893+0.404 * 0.607+0.892 * 0.9521+0.115 * 0.8214
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0993+4.679 * -0.112-0.327 * 1.4667
=-3.35

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $394 Mil.
Revenue was 773 + 859 + 906 + 898 = $3,436 Mil.
Gross Profit was 230 + 329 + 221 + 228 = $1,008 Mil.
Total Current Assets was $2,147 Mil.
Total Assets was $27,866 Mil.
Property, Plant and Equipment(Net PPE) was $24,545 Mil.
Depreciation, Depletion and Amortization(DDA) was $753 Mil.
Selling, General & Admin. Expense(SGA) was $247 Mil.
Total Current Liabilities was $1,456 Mil.
Long-Term Debt was $3,442 Mil.
Net Income was -2396 + -44 + 181 + 98 = $-2,161 Mil.
Non Operating Income was -55 + -4 + 11 + -7 = $-55 Mil.
Cash Flow from Operations was 274 + 192 + 275 + 273 = $1,014 Mil.
Accounts Receivable was $469 Mil.
Revenue was 892 + 895 + 858 + 964 = $3,609 Mil.
Gross Profit was 462 + 386 + 173 + 344 = $1,365 Mil.
Total Current Assets was $2,374 Mil.
Total Assets was $29,564 Mil.
Property, Plant and Equipment(Net PPE) was $25,138 Mil.
Depreciation, Depletion and Amortization(DDA) was $630 Mil.
Selling, General & Admin. Expense(SGA) was $236 Mil.
Total Current Liabilities was $2,033 Mil.
Long-Term Debt was $1,510 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)
=(394 / 3436) / (469 / 3609)
=0.11466822 / 0.1299529
=0.8824

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)
=(329 / 3609) / (230 / 3436)
=0.37822111 / 0.29336438
=1.2893

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 - (2147 + 24545) / 27866) / (1 - (2374 + 25138) / 29564)
=0.04213019 / 0.06940874
=0.607

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
=3436 / 3609
=0.9521

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))
=(630 / (630 + 25138)) / (753 / (753 + 24545))
=0.02444893 / 0.0297652
=0.8214

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)
=(247 / 3436) / (236 / 3609)
=0.07188591 / 0.06539208
=1.0993

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)
=((3442 + 1456) / 27866) / ((1510 + 2033) / 29564)
=0.17576976 / 0.1198417
=1.4667

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
=(-2161 - -55 - 1014) / 27866
=-0.112

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 -3.35 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 0.98551.05991.09811.81650.84280.83510.90681.07960.98041.1717
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 3.61-2.15-1.76-1.85-2.78-1.79-2.57-2.33-3.60-3.41

Goldcorp Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 2.31471.37930.79761.21540.60831.0681.30871.23111.20080.8824
GMI 0.63981.08531.17151.36441.69981.03771.02330.84180.67551.2893
AQI 1.78540.94990.88260.86330.88020.9691.0081.01751.06730.607
SGI 0.98490.86910.82380.81920.74730.77450.80290.8570.93480.9521
DEPI 1.11021.29341.24591.05151.0420.88130.84430.92440.8750.8214
SGAI 1.12561.2311.1641.22081.34361.24381.29371.16191.02191.0993
LVGI 1.21471.16391.89922.11671.92582.00571.28871.26771.18411.4667
TATA -0.0109-0.0101-0.0128-0.0734-0.0881-0.1227-0.1248-0.0601-0.0596-0.112
M-score -1.29-2.33-3.13-3.05-3.51-3.57-3.10-2.88-2.85-3.35
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)
FEEDBACK