Goldgroup Mining (Goldgroup Mining) Beneish M-Score : 8.99 (As of Apr. 30, 2024)

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What is Goldgroup Mining Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 8.99 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Goldgroup Mining's Beneish M-Score or its related term are showing as below:

GGAZF' s Beneish M-Score Range Over the Past 10 Years
Min: -5.53 Med: -3.28 Max: 101.85
Current: 8.99

During the past 13 years, the highest Beneish M-Score of Goldgroup Mining was 101.85. The lowest was -5.53. And the median was -3.28.

Goldgroup Mining Beneish M-Score Historical Data

The historical data trend for Goldgroup Mining's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Goldgroup Mining Beneish M-Score Chart

Goldgroup Mining Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-5.24

-1.47

-4.07

101.85

8.99

Goldgroup Mining Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															101.85	-	12.66	-	8.99

Competitive Comparison of Goldgroup Mining's Beneish M-Score

For the Gold subindustry, Goldgroup Mining's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Goldgroup Mining's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Goldgroup Mining's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Goldgroup Mining's Beneish M-Score falls into.

Goldgroup Mining Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Goldgroup Mining for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.0575

0.528 * -5.8603

0.404 * 1.8934

0.892 * 17.7409

0.115 * 0.0574

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.0584

4.679 * -0.045865

0.327 * 1.4041

8.03

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $1.54 Mil.
Revenue was 4.674 + 3.793 + 1.326 + 0 = $9.79 Mil.
Gross Profit was 0.984 + -0.251 + 0.708 + 0 = $1.44 Mil.
Total Current Assets was $5.12 Mil.
Total Assets was $9.42 Mil.
Property, Plant and Equipment(Net PPE) was $2.63 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.61 Mil.
Selling, General, & Admin. Expense(SGA) was $3.35 Mil.
Total Current Liabilities was $13.53 Mil.
Long-Term Debt & Capital Lease Obligation was $0.13 Mil.
Net Income was 0.249 + -1.07 + -5.083 + -0.842 = $-6.75 Mil.
Non Operating Income was 0.466 + -0.038 + -4.826 + 0.012 = $-4.39 Mil.
Cash Flow from Operations was -0.203 + -0.195 + 0.816 + -2.346 = $-1.93 Mil.

Total Receivables was $1.51 Mil.
Revenue was 0 + 0 + 0 + 0.552 = $0.55 Mil.
Gross Profit was 0 + 0 + 0 + -0.476 = $-0.48 Mil.
Total Current Assets was $3.02 Mil.
Total Assets was $15.41 Mil.
Property, Plant and Equipment(Net PPE) was $10.94 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.12 Mil.
Selling, General, & Admin. Expense(SGA) was $3.24 Mil.
Total Current Liabilities was $15.82 Mil.
Long-Term Debt & Capital Lease Obligation was $0.08 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(1.538 / 9.793)	/	(1.507 / 0.552)
	=	0.157051	/	2.730072
	=	0.0575

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)
	=	(-0.476 / 0.552)	/	(1.441 / 9.793)
	=	-0.862319	/	0.147146
	=	-5.8603

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (5.118 + 2.627) / 9.419)	/	(1 - (3.024 + 10.935) / 15.405)
	=	0.177726	/	0.093866
	=	1.8934

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	9.793	/	0.552
	=	17.7409

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(0.119 / (0.119 + 10.935))	/	(0.606 / (0.606 + 2.627))
	=	0.010765	/	0.187442
	=	0.0574

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(3.353 / 9.793)	/	(3.238 / 0.552)
	=	0.342387	/	5.865942
	=	0.0584

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0.126 + 13.525) / 9.419)	/	((0.078 + 15.823) / 15.405)
	=	1.449305	/	1.032197
	=	1.4041

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
	=	(-6.746 - -4.386	-	-1.928)	/	9.419
	=	-0.045865

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Goldgroup Mining has a M-score of 8.03 signals that the company is likely to be a manipulator.

Goldgroup Mining Beneish M-Score Related Terms

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Goldgroup Mining (Goldgroup Mining) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Goldgroup Mining Inc (OTCPK:GGAZF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GGA:Mexico 55G0:Germany GGA:Canada

Address

1166 Alberni Street, Suite 1201, Vancouver, BC, CAN, V6E 3Z3

Website

https://www.goldgroupmining.com

Goldgroup Mining Inc is a Canadian-based gold production, development, and exploration company with an upside in a portfolio of projects in Mexico, including an interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the high-grade gold exploration project, San Jose de Gracia, located in the State of Sinaloa. In addition, the company operates its 100%-owned Cerro Prieto heap-leach gold mine, in the State of Sonora, Mexico.