Switch to:
Goldcorp Inc (NYSE:GG)
Beneish M-Score
-2.44 (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 -2.44 suggests that the company is not a manipulator.

GG' s 10-Year Beneish M-Score Range
Min: -6.83   Max: 4.06
Current: -2.44

-6.83
4.06

During the past 13 years, the highest Beneish M-Score of Goldcorp Inc was 4.06. The lowest was -6.83. And the median was -2.43.


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 * 1.6643+0.528 * 1.6363+0.404 * 1.008+0.892 * 0.809+0.115 * 0.8468
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2839+4.679 * -0.1248-0.327 * 1.2887
=-2.44

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $618 Mil.
Revenue was 898 + 854 + 929 + 889 = $3,570 Mil.
Gross Profit was 228 + 287 + 234 + 179 = $928 Mil.
Total Current Assets was $2,803 Mil.
Total Assets was $30,175 Mil.
Property, Plant and Equipment(Net PPE) was $25,312 Mil.
Depreciation, Depletion and Amortization(DDA) was $654 Mil.
Selling, General & Admin. Expense(SGA) was $242 Mil.
Total Current Liabilities was $2,671 Mil.
Long-Term Debt was $1,482 Mil.
Net Income was 98 + -1089 + 5 + -1934 = $-2,920 Mil.
Non Operating Income was -7 + -102 + 3 + 18 = $-88 Mil.
Cash Flow from Operations was 273 + 307 + 274 + 80 = $934 Mil.
Accounts Receivable was $459 Mil.
Revenue was 964 + 1086 + 1282 + 1081 = $4,413 Mil.
Gross Profit was 344 + 441 + 601 + 491 = $1,877 Mil.
Total Current Assets was $3,440 Mil.
Total Assets was $32,632 Mil.
Property, Plant and Equipment(Net PPE) was $26,982 Mil.
Depreciation, Depletion and Amortization(DDA) was $588 Mil.
Selling, General & Admin. Expense(SGA) was $233 Mil.
Total Current Liabilities was $1,210 Mil.
Long-Term Debt was $2,275 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)
=(618 / 3570) / (459 / 4413)
=0.17310924 / 0.10401088
=1.6643

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)
=(287 / 4413) / (228 / 3570)
=0.42533424 / 0.25994398
=1.6363

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 - (2803 + 25312) / 30175) / (1 - (3440 + 26982) / 32632)
=0.06826843 / 0.06772493
=1.008

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
=3570 / 4413
=0.809

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))
=(588 / (588 + 26982)) / (654 / (654 + 25312))
=0.02132753 / 0.02518678
=0.8468

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)
=(242 / 3570) / (233 / 4413)
=0.06778711 / 0.05279855
=1.2839

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)
=((1482 + 2671) / 30175) / ((2275 + 1210) / 32632)
=0.13763049 / 0.10679701
=1.2887

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
=(-2920 - -88 - 934) / 30175
=-0.1248

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 -2.44 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 3.01710.85270.45092.28760.89551.46751.24240.5711.64891.3801
GMI 1.0270.98551.05991.09811.81650.84280.83510.90681.07961.575
AQI 1.13795.56161.38610.5641.01731.02981.59710.71760.97280.969
SGI 0.72724.69321.90761.29051.09641.12561.37241.43450.86910.7912
DEPI 1.39351.72122.06960.78050.94541.00111.12410.90591.29440.8759
SGAI 1.69450.60350.99111.24070.93810.8651.00730.86761.2311.2175
LVGI 0.39731.2351.48931.0250.36112.68280.83980.83471.22811.9899
TATA 0.0098-0.0507-0.0308-0.0136-0.0336-0.0353-0.0016-0.0287-0.0101-0.1226
M-score -0.632.35-2.17-1.30-2.00-2.70-1.71-2.72-2.10-2.97

Goldcorp Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.79581.77481.09932.83691.1830.55040.81050.63371.39941.6643
GMI 0.37960.46760.53790.54741.1931.26181.43851.51141.57991.6363
AQI 0.71760.84830.81921.78540.97280.88260.86330.88020.9691.008
SGI 1.02920.9070.75890.69171.21131.14861.17251.08230.78030.809
DEPI 0.61520.66780.74910.73171.90611.85571.58461.55810.8840.8468
SGAI 0.90830.99551.08521.22981.17591.09061.121.20911.23451.2839
LVGI 0.83470.95131.13151.21471.22811.89922.11671.92581.98991.2887
TATA -0.0735-0.062-0.0725-0.0539-0.0101-0.0128-0.0734-0.0881-0.1226-0.1248
M-score -3.40-2.50-3.35-1.38-2.08-2.94-2.99-3.21-2.97-2.44
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
Email Hide