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Revett Mining Co Inc (AMEX:RVM)
Beneish M-Score
-14.51 (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 -14.56 suggests that the company is not a manipulator.

RVM' s 10-Year Beneish M-Score Range
Min: -14.43   Max: 2222.82
Current: -14.51

-14.43
2222.82

During the past 11 years, the highest Beneish M-Score of Revett Mining Co Inc was 2222.82. The lowest was -14.43. And the median was -2.22.


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 * 0.0836+0.528 * 0.6283+0.404 * 2.5535+0.892 * 0.0822+0.115 * 0.0732
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 7.8436+4.679 * -1.7689-0.327 * 4.9431
=-14.56

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $0.01 Mil.
Revenue was 0 + 0 + 0 + 0.006 = $0.01 Mil.
Gross Profit was -0.169 + -0.35 + 0 + -0.23 = $-0.75 Mil.
Total Current Assets was $7.80 Mil.
Total Assets was $31.37 Mil.
Property, Plant and Equipment(Net PPE) was $16.29 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.11 Mil.
Selling, General & Admin. Expense(SGA) was $7.42 Mil.
Total Current Liabilities was $6.18 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -57.403 + -2.051 + -1.635 + -0.834 = $-61.92 Mil.
Non Operating Income was 0 + 0 + -0.01 + 1.719 = $1.71 Mil.
Cash Flow from Operations was -3.023 + -1.612 + -2.376 + -1.124 = $-8.14 Mil.
Accounts Receivable was $1.16 Mil.
Revenue was 0.003 + -0.146 + 0 + 0.216 = $0.07 Mil.
Gross Profit was -0.293 + -0.59 + -0.322 + -4.521 = $-5.73 Mil.
Total Current Assets was $13.66 Mil.
Total Assets was $86.65 Mil.
Property, Plant and Equipment(Net PPE) was $65.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.03 Mil.
Selling, General & Admin. Expense(SGA) was $11.51 Mil.
Total Current Liabilities was $3.09 Mil.
Long-Term Debt was $0.36 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)
=(0.008 / 0.006) / (1.164 / 0.073)
=1.33333333 / 15.94520548
=0.0836

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)
=(-0.35 / 0.073) / (-0.169 / 0.006)
=-78.43835616 / -124.83333333
=0.6283

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 - (7.802 + 16.288) / 31.374) / (1 - (13.662 + 65.108) / 86.648)
=0.23216676 / 0.09091958
=2.5535

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
=0.006 / 0.073
=0.0822

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))
=(0.032 / (0.032 + 65.108)) / (0.11 / (0.11 + 16.288))
=0.00049125 / 0.00670814
=0.0732

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)
=(7.419 / 0.006) / (11.508 / 0.073)
=1236.5 / 157.64383562
=7.8436

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)
=((0 + 6.182) / 31.374) / ((0.364 + 3.09) / 86.648)
=0.19704214 / 0.03986243
=4.9431

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
=(-61.923 - 1.709 - -8.135) / 31.374
=-1.7689

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 -14.56 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.54586.73651.80050.88180.0922600.91340.0836
GMI -5.9566-1.03940.12360.72121.7335-0.0120.1136
AQI 1.78361.01570.8570.69810.82051.1122.5535
SGI 0.92430.81981.59531.49160.84450.00120.0822
DEPI 0.80020.64170.9461.61440.789580.35920.0732
SGAI 1.33570.61980.89451.16961.13811905.22845.667
LVGI 0.81791.09960.5360.92980.90090.56954.9431
TATA -0.0488-0.068-0.01-0.0926-0.06350.098-1.7281
M-score -6.571.24-1.62-2.79-3.452,070.26-14.27

Revett Mining Co Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.65240.0920.0560.0040.39962600.82553627.038885377.008219.90970.0836
GMI 1.22851.733718.5197-3.4653-0.2181-0.0027-0.00030.00120.01550.6283
AQI 0.86180.82050.9230.99331.32481.1120.98241.00670.76662.5535
SGI 1.20380.84450.52630.37580.09850.0012-0.0034-0.00510.00120.0822
DEPI 1.63270.78951.031.46053.417980.359267.320252.054424.49410.0732
SGAI 0.83381.29473.99733.168215.04691376.6864944.3619526.5021628.2047.8436
LVGI 1.30150.90090.62860.53270.44560.56950.69340.55021.67714.9431
TATA -0.0874-0.0635-0.02590.05760.09490.0980.0440.0193-0.0098-1.7689
M-score -2.04-3.484.94-6.21-5.862,161.093,177.7278,457.75-92.03-14.56
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