Switch to:
Revett Mining Co Inc (AMEX:RVM)
Beneish M-Score
82599.86 (As of Today)

Warning Sign:

Beneish M-Score 82599.86 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: -7.17   Max: 82599.86
Current: 82599.86

-7.17
82599.86

During the past 10 years, the highest Beneish M-Score of Revett Mining Co Inc was 82599.86. The lowest was -7.17. And the median was -3.00.


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 (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $0.00 Mil.
Revenue was 0 + 0.006 + 0.003 + -0.146 = $-0.14 Mil.
Gross Profit was 0 + -0.23 + -0.293 + -0.59 = $-1.11 Mil.
Total Current Assets was $10.77 Mil.
Total Assets was $86.84 Mil.
Property, Plant and Equipment(Net PPE) was $68.79 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.03 Mil.
Selling, General & Admin. Expense(SGA) was $9.02 Mil.
Total Current Liabilities was $2.25 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.635 + -0.834 + -2.801 + -0.6 = $-5.87 Mil.
Non Operating Income was -0.01 + 1.719 + 0 + 0 = $1.71 Mil.
Cash Flow from Operations was -2.376 + -1.124 + -3.043 + -2.716 = $-9.26 Mil.
Accounts Receivable was $0.01 Mil.
Revenue was 0 + 0.216 + 7.205 + 19.351 = $26.77 Mil.
Gross Profit was -0.322 + -0.101 + -5.532 + 7.825 = $1.87 Mil.
Total Current Assets was $20.41 Mil.
Total Assets was $92.69 Mil.
Property, Plant and Equipment(Net PPE) was $64.56 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.35 Mil.
Selling, General & Admin. Expense(SGA) was $12.44 Mil.
Total Current Liabilities was $3.53 Mil.
Long-Term Debt was $0.83 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)
=(0.004 / -0.137) / (0.005 / 26.772)
= / 0.00018676
=

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)
=(-0.23 / 26.772) / (0 / -0.137)
=0.0698491 /
=

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 - (10.765 + 68.794) / 86.841) / (1 - (20.405 + 64.563) / 92.689)
=0.0838544 / 0.08330007
=

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 / 26.772
=

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))
=(1.346 / (1.346 + 64.563)) / (0.027 / (0.027 + 68.794))
=0.0204221 / 0.00039232
=

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)
=(9.021 / -0.137) / (12.436 / 26.772)
= / 0.46451517
=

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 + 2.248) / 86.841) / ((0.829 + 3.532) / 92.689)
=0.02588639 / 0.04704981
=

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
=(-5.87 - 1.709 - -9.259) / 86.841
=0.0193

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 0.20634.67171.80050.88180.0922600.9134
GMI -5.9566-1.03940.12360.72121.7335-0.012
AQI 1.78361.01570.8570.69810.82051.112
SGI 0.92430.81981.59531.49160.84450.0012
DEPI 0.80020.64170.9461.61440.789580.3592
SGAI 1.33570.61980.89451.16961.13811905.2284
LVGI 0.81791.09960.5360.92980.90090.5695
TATA -0.0488-0.068-0.01-0.0926-0.06350.098
M-score -6.88-0.66-1.62-2.79-3.452,070.26

Revett Mining Co Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.35890.43971.65240.0920.0560.0040.39962600.82553627.038885377.0082
GMI 0.7221.14451.22851.73372.94864.7254-0.3654-0.012-0.0073-0.0039
AQI 1.00660.96420.86180.82050.9230.99331.32481.1120.98241.0067
SGI 1.60581.24831.20380.84450.52630.37580.09850.0012-0.0034-0.0051
DEPI 1.36631.47231.63270.78951.031.46053.417980.359267.320252.0544
SGAI 0.2890.86190.83381.29476.6264.915221.77431905.445788.5143469.7194
LVGI 1.25791.13351.30150.90090.62860.53270.44560.56950.69340.5502
TATA -0.0687-0.1209-0.0874-0.0635-0.02580.05760.09490.0980.04390.0193
M-score -1.99-3.24-2.04-3.48-3.74-2.19-7.102,070.143,204.5278,467.51
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK