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Beneish M-Score 2161.09 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 Company Inc has a M-score of 2,161.09 signals that the company is a manipulator.
During the past 10 years, the highest Beneish M-Score of Revett Mining Company Inc was 2161.09. The lowest was -8.46. And the median was -1.62.
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 Company 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 * 2600.8275||+||0.528 * -0.0027||+||0.404 * 1.112||+||0.892 * 0.0012||+||0.115 * 80.3591|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1376.6864||+||4.679 * 0.098||-||0.327 * 0.5695|
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|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.
Net Income was -2.801 + -0.6 + -4.055 + -4.119 = $-11.58 Mil.
Non Operating Income was 0 + 0 + -1.093 + -0.225 = $-1.32 Mil.
Cash Flow from Operations was -3.043 + -2.716 + -5.981 + -7.012 = $-18.75 Mil.
|Accounts Receivable was $0.36 Mil.
Revenue was 7.205 + 19.351 + 13.49 + 19.163 = $59.21 Mil.
Gross Profit was -2.3 + 6.588 + 1.9 + 6.524 = $12.71 Mil.
Total Current Assets was $34.79 Mil.
Total Assets was $107.97 Mil.
Property, Plant and Equipment(Net PPE) was $64.36 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.65 Mil.
Selling, General & Admin. Expense(SGA) was $6.78 Mil.
Total Current Liabilities was $6.27 Mil.
Long-Term Debt was $1.29 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(1.164 / 0.073)||/||(0.363 / 59.209)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(-0.59 / 59.209)||/||(-0.293 / 0.073)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (13.662 + 65.108) / 86.648)||/||(1 - (34.785 + 64.357) / 107.97)|
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.
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))|
|=||(2.645 / (2.645 + 64.357))||/||(0.032 / (0.032 + 65.108))|
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)|
|=||(11.508 / 0.073)||/||(6.78 / 59.209)|
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)|
|=||((0.364 + 3.09) / 86.648)||/||((1.289 + 6.268) / 107.97)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-11.575 - -1.318||-||-18.752)||/||86.648|
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 Company Inc has a M-score of 2,161.09 signals that the company is likely to be a manipulator.
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
Revett Mining Company Inc Annual Data
Revett Mining Company Inc Quarterly Data