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Revett Mining Co Inc (AMEX:RVM)
Beneish M-Score
-56.52 (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.

Revett Mining Co Inc has a M-score of -58.65 suggests that the company is not a manipulator.

RVM' s 10-Year Beneish M-Score Range
Min: -56.52   Max: 82599.86
Current: -56.52

-56.52
82599.86

During the past 10 years, the highest Beneish M-Score of Revett Mining Co Inc was 82599.86. The lowest was -56.52. And the median was -3.01.


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 Revett Mining Co 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 * 19.9097+0.528 * 0.0093+0.404 * 0.7666+0.892 * 0.0012+0.115 * 24.4939
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 434.1133+4.679 * -0.0098-0.327 * 1.6771
=-58.65

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $0.01 Mil.
Revenue was 0 + 0 + 0.006 + 0.003 = $0.01 Mil.
Gross Profit was -0.35 + 0 + -0.23 + -0.293 = $-0.87 Mil.
Total Current Assets was $11.58 Mil.
Total Assets was $89.34 Mil.
Property, Plant and Equipment(Net PPE) was $70.48 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.02 Mil.
Selling, General & Admin. Expense(SGA) was $7.68 Mil.
Total Current Liabilities was $3.70 Mil.
Long-Term Debt was $2.93 Mil.
Net Income was -2.051 + -1.635 + -0.834 + -2.801 = $-7.32 Mil.
Non Operating Income was 0 + -0.01 + 1.719 + 0 = $1.71 Mil.
Cash Flow from Operations was -1.612 + -2.376 + -1.124 + -3.043 = $-8.16 Mil.
Accounts Receivable was $0.20 Mil.
Revenue was -0.146 + 0 + 0.216 + 7.205 = $7.28 Mil.
Gross Profit was -0.59 + -0.322 + -0.101 + -5.532 = $-6.55 Mil.
Total Current Assets was $16.91 Mil.
Total Assets was $91.19 Mil.
Property, Plant and Equipment(Net PPE) was $64.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.54 Mil.
Selling, General & Admin. Expense(SGA) was $14.31 Mil.
Total Current Liabilities was $3.44 Mil.
Long-Term Debt was $0.60 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)
=(0.005 / 0.009) / (0.203 / 7.275)
=0.55555556 / 0.02790378
=19.9097

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 / 7.275) / (-0.35 / 0.009)
=-0.89965636 / -97
=0.0093

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 - (11.581 + 70.478) / 89.344) / (1 - (16.907 + 64.579) / 91.185)
=0.08153877 / 0.10636618
=0.7666

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
=0.009 / 7.275
=0.0012

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))
=(0.543 / (0.543 + 64.579)) / (0.024 / (0.024 + 70.478))
=0.0083382 / 0.00034042
=24.4939

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)
=(7.683 / 0.009) / (14.306 / 7.275)
=853.66666667 / 1.96646048
=434.1133

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)
=((2.929 + 3.698) / 89.344) / ((0.597 + 3.436) / 91.185)
=0.07417398 / 0.04422877
=1.6771

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
=(-7.321 - 1.709 - -8.155) / 89.344
=-0.0098

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.

Revett Mining Co Inc has a M-score of -58.65 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.

Revett Mining Co Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.24985.99792.02220.88180.0922600.9134
GMI -5.9571-1.16740.11660.68111.7335-0.012
AQI 1.22391.48840.54891.090.82051.112
SGI 0.92430.92071.42041.49160.84450.0012
DEPI 0.85290.60171.08251.41080.789580.3592
SGAI 1.33580.55181.00461.16961.13811905.2284
LVGI 0.79681.09960.51360.97040.90090.5695
TATA -0.0488-0.068-0.0141-0.0926-0.06350.098
M-score -7.060.78-1.71-2.69-3.452,070.26

Revett Mining Co Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.43971.65240.0920.0560.0040.39962600.82553627.038885377.008219.9097
GMI 1.10721.19381.73372.94864.7254-0.3654-0.012-0.0073-0.00390.0093
AQI 0.96420.86180.82050.9230.99331.32481.1120.98241.00670.7666
SGI 1.24831.20380.84450.52630.37580.09850.0012-0.0034-0.00510.0012
DEPI 1.40681.54410.78951.031.46053.417980.359267.320252.054424.4941
SGAI 0.86190.83381.29476.6264.915221.77431905.445788.5143469.7194434.1133
LVGI 1.13351.30150.90090.62860.53270.44560.56950.69340.55021.6771
TATA -0.1209-0.0874-0.0635-0.02580.05760.09490.0980.04390.0193-0.0098
M-score -3.27-2.07-3.48-3.74-2.19-7.102,070.143,204.5278,467.51-58.65
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