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Revett Mining Co Inc (AMEX:RVM)
Beneish M-Score
3204.52 (As of Today)

Warning Sign:

Beneish M-Score 3204.52 higher than -2.22, which implies that it might have manipulated its financial results.

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 signals that the company is a manipulator.

RVM' s 10-Year Beneish M-Score Range
Min: -8.46   Max: 3204.52
Current: 3204.52

-8.46
3204.52

During the past 10 years, the highest Beneish M-Score of Revett Mining Co Inc was 3204.52. The lowest was -8.46. And the median was -3.09.


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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 $1.89 Mil.
Revenue was 0.006 + 0.003 + -0.146 + 0 = $-0.14 Mil.
Gross Profit was -0.23 + -0.293 + -0.59 + -0.322 = $-1.44 Mil.
Total Current Assets was $15.53 Mil.
Total Assets was $89.82 Mil.
Property, Plant and Equipment(Net PPE) was $67.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.03 Mil.
Selling, General & Admin. Expense(SGA) was $12.53 Mil.
Total Current Liabilities was $3.72 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -0.834 + -2.801 + -0.6 + -4.055 = $-8.29 Mil.
Non Operating Income was 1.719 + 0 + 0 + -1.093 = $0.63 Mil.
Cash Flow from Operations was -1.124 + -3.043 + -2.716 + -5.976 = $-12.86 Mil.
Accounts Receivable was $0.18 Mil.
Revenue was 0.216 + 7.205 + 19.351 + 13.49 = $40.26 Mil.
Gross Profit was -0.101 + -2.3 + 6.588 + 1.9 = $6.09 Mil.
Total Current Assets was $27.46 Mil.
Total Assets was $100.25 Mil.
Property, Plant and Equipment(Net PPE) was $64.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.00 Mil.
Selling, General & Admin. Expense(SGA) was $11.14 Mil.
Total Current Liabilities was $4.92 Mil.
Long-Term Debt was $1.06 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)
=(1.885 / -0.137) / (0.177 / 40.262)
= / 0.0043962
=

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)
=(-0.293 / 40.262) / (-0.23 / -0.137)
=0.15118474 /
=

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 - (15.531 + 67.011) / 89.823) / (1 - (27.455 + 64.519) / 100.245)
=0.08105942 / 0.08250786
=

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
=-0.137 / 40.262
=

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))
=(2.004 / (2.004 + 64.519)) / (0.03 / (0.03 + 67.011))
=0.03012492 / 0.00044749
=

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)
=(12.533 / -0.137) / (11.141 / 40.262)
= / 0.27671253
=

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 + 3.716) / 89.823) / ((1.06 + 4.921) / 100.245)
=0.04137025 / 0.05966382
=

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
=(-8.29 - 0.626 - -12.859) / 89.823
=0.0439

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 signals that the company is likely to 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 0.20634.15962.02220.88180.0922600.9134
GMI -5.9566-1.16740.11660.68111.7335-0.012
AQI 1.78361.01570.54891.090.82051.112
SGI 0.92430.92071.42041.49160.84450.0012
DEPI 0.80020.64171.08251.04941.061480.3592
SGAI 1.33570.55181.00461.16961.13811905.2284
LVGI 0.81791.09960.51360.97040.90090.5695
TATA -0.0488-0.068-0.0141-0.0926-0.06350.098
M-score -6.88-1.10-1.71-2.73-3.422,070.26

Revett Mining Co Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.88181.35890.43971.65240.0920.0560.0040.39962600.82553627.0388
GMI 0.68120.70361.20991.3771.73372.47482.0923-0.6258-0.012-0.0085
AQI 1.091.00660.96420.86180.82050.9230.99331.32481.1120.9824
SGI 1.49161.60581.24831.20380.84450.52630.37580.09850.0012-0.0034
DEPI 1.04940.96691.04721.14871.06141.37281.9624.594280.359267.3202
SGAI 1.15190.36620.75840.73891.1385.22854.915221.77431905.445788.5143
LVGI 0.97041.25791.13351.30150.90090.62860.53270.44560.56950.6934
TATA -0.0925-0.0566-0.1078-0.073-0.0626-0.02490.05760.09490.0980.0439
M-score -2.73-2.01-3.18-1.93-3.42-3.70-3.52-7.102,070.143,204.52
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