Switch to:
Goldcorp Inc (NYSE:GG)
Beneish M-Score
-2.72 (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 -2.91 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -6.82   Max: 6.51
Current: -2.72

-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 -2.48.


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 * 0.9443+0.528 * 1.678+0.404 * 0.617+0.892 * 1.0811+0.115 * 0.5963
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8939+4.679 * -0.1265-0.327 * 1.0966
=-2.91

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $489 Mil.
Revenue was 1188 + 1017 + 773 + 859 = $3,837 Mil.
Gross Profit was 192 + 75 + 230 + 329 = $826 Mil.
Total Current Assets was $2,436 Mil.
Total Assets was $27,890 Mil.
Property, Plant and Equipment(Net PPE) was $24,317 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,082 Mil.
Selling, General & Admin. Expense(SGA) was $230 Mil.
Total Current Liabilities was $1,114 Mil.
Long-Term Debt was $3,361 Mil.
Net Income was 392 + -87 + -2396 + -44 = $-2,135 Mil.
Non Operating Income was 425 + -24 + -55 + -4 = $342 Mil.
Cash Flow from Operations was 528 + 58 + 274 + 192 = $1,052 Mil.
Accounts Receivable was $479 Mil.
Revenue was 884 + 878 + 892 + 895 = $3,549 Mil.
Gross Profit was 212 + 222 + 462 + 386 = $1,282 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 $672 Mil.
Selling, General & Admin. Expense(SGA) was $238 Mil.
Total Current Liabilities was $2,009 Mil.
Long-Term Debt was $2,471 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)
=(489 / 3837) / (479 / 3549)
=0.12744332 / 0.1349676
=0.9443

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)
=(75 / 3549) / (192 / 3837)
=0.36122852 / 0.21527235
=1.678

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 - (2436 + 24317) / 27890) / (1 - (2812 + 25783) / 30618)
=0.0407673 / 0.06607225
=0.617

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
=3837 / 3549
=1.0811

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))
=(672 / (672 + 25783)) / (1082 / (1082 + 24317))
=0.02540163 / 0.0426001
=0.5963

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)
=(230 / 3837) / (238 / 3549)
=0.05994266 / 0.06706114
=0.8939

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)
=((3361 + 1114) / 27890) / ((2471 + 2009) / 30618)
=0.16045177 / 0.14631916
=1.0966

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
=(-2135 - 342 - 1052) / 27890
=-0.1265

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 -2.91 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 2.22340.46771.78681.05431.38681.14150.75491.18261.21930.9015
GMI 0.98551.05991.09811.81650.84280.82970.91271.09851.54780.7293
AQI 5.56161.38610.5641.01731.02981.59710.73490.94990.9690.607
SGI 4.69321.90761.29051.09641.12561.39511.41111.01360.67840.9319
DEPI 1.72122.06960.78050.94541.00111.08720.93741.12461.00730.8265
SGAI 0.60350.99111.24070.93810.89420.92250.91631.05551.41991.1231
LVGI 1.2351.48931.0250.36112.68280.83980.88081.16392.00571.4667
TATA -0.0507-0.0308-0.0136-0.0336-0.0343-0.02-0.028-0.0143-0.1226-0.112
M-score 3.61-2.15-1.76-1.85-2.78-1.86-2.58-2.38-3.26-3.65

Goldcorp Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.79761.21540.60831.0681.31611.24561.21520.89331.1080.9443
GMI 1.34851.58432.1211.03771.02250.84170.67571.29271.47341.678
AQI 0.88260.86330.88020.9691.0081.01751.06730.6070.59140.617
SGI 0.82380.81920.74730.77450.79830.8470.92370.94041.00281.0811
DEPI 1.24591.05151.0420.88130.84550.92710.87740.82350.71910.5963
SGAI 1.1641.22081.34361.24381.3011.17571.03411.11290.97240.8939
LVGI 1.89922.11671.92582.00571.28871.26771.18411.46671.2591.0966
TATA -0.0128-0.0734-0.0881-0.1227-0.1248-0.0601-0.0596-0.112-0.1097-0.1265
M-score -3.04-2.93-3.29-3.57-3.10-2.87-2.85-3.35-2.92-2.91
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)

GuruFocus Premium Plus Membership

FEEDBACK