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Goldcorp Inc (NYSE:GG)
Beneish M-Score
-3.46 (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 -3.45 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: -3.46

-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 * 0.8205+0.528 * 2.1567+0.404 * 0.6089+0.892 * 0.9969+0.115 * 0.6715
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8984+4.679 * -0.2575-0.327 * 1.0797
=-3.45

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $400 Mil.
Revenue was 753 + 944 + 1072 + 1098 = $3,867 Mil.
Gross Profit was 22 + 145 + -11 + 46 = $202 Mil.
Total Current Assets was $1,321 Mil.
Total Assets was $21,271 Mil.
Property, Plant and Equipment(Net PPE) was $19,422 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,318 Mil.
Selling, General & Admin. Expense(SGA) was $206 Mil.
Total Current Liabilities was $817 Mil.
Long-Term Debt was $2,868 Mil.
Net Income was -78 + 80 + -4271 + -192 = $-4,461 Mil.
Non Operating Income was 12 + -17 + -103 + -12 = $-120 Mil.
Cash Flow from Operations was 234 + 59 + 401 + 443 = $1,137 Mil.
Accounts Receivable was $489 Mil.
Revenue was 1188 + 1017 + 835 + 839 = $3,879 Mil.
Gross Profit was 192 + 75 + 38 + 132 = $437 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 $1,084 Mil.
Selling, General & Admin. Expense(SGA) was $230 Mil.
Total Current Liabilities was $1,114 Mil.
Long-Term Debt was $3,361 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)
=(400 / 3867) / (489 / 3879)
=0.10343936 / 0.12606342
=0.8205

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)
=(437 / 3879) / (202 / 3867)
=0.1126579 / 0.05223688
=2.1567

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 - (1321 + 19422) / 21271) / (1 - (2436 + 24317) / 27890)
=0.02482253 / 0.0407673
=0.6089

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
=3867 / 3879
=0.9969

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))
=(1084 / (1084 + 24317)) / (1318 / (1318 + 19422))
=0.04267549 / 0.0635487
=0.6715

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)
=(206 / 3867) / (230 / 3879)
=0.05327127 / 0.05929363
=0.8984

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)
=((2868 + 817) / 21271) / ((3361 + 1114) / 27890)
=0.17324056 / 0.16045177
=1.0797

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
=(-4461 - -120 - 1137) / 21271
=-0.2575

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 -3.45 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.46771.78681.05431.38681.16040.74271.37931.0680.88240.6897
GMI 1.05991.09811.81650.84280.83510.90681.07961.57421.63932.5466
AQI 1.38610.5641.01731.02981.59710.73490.94990.9691.6860.9838
SGI 1.90761.29051.09641.12561.37241.43450.86910.77450.95211.2733
DEPI 2.06960.78050.94541.00111.12410.90661.29340.88130.75360.4155
SGAI 0.99111.24070.8990.90261.00730.86761.2311.24381.09930.6582
LVGI 1.48931.0250.36112.68280.83980.88081.16392.00571.4731.0025
TATA -0.0308-0.0136-0.036-0.0353-0.0016-0.028-0.0101-0.1227-0.112-0.2741
M-score -2.15-1.76-1.85-2.78-1.79-2.57-2.33-3.29-2.74-3.00

Goldcorp Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.31611.24561.22210.88241.09490.9340.71440.68970.81380.8205
GMI 1.63231.37981.26521.63932.03842.39362.90592.54661.47832.1567
AQI 1.0081.01751.06731.6860.59140.6170.59420.98380.6380.6089
SGI 0.79830.8470.91850.95211.01481.0931.18471.27331.20340.9969
DEPI 0.84550.92710.87860.75360.71750.59520.52560.41550.50890.6715
SGAI 1.3011.17571.04011.09930.9610.88420.78310.65820.73590.8984
LVGI 1.28871.26771.18411.4731.2591.09660.96391.00251.03791.0797
TATA -0.1248-0.0601-0.0596-0.112-0.1097-0.1265-0.1451-0.2741-0.2657-0.2575
M-score -2.78-2.59-2.54-2.74-2.62-2.53-2.42-3.00-3.63-3.45
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