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

Warning Sign:

Beneish M-Score 40.77 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: -56.35   Max: 79057.49
Current: 40.77

-56.35
79057.49

During the past 11 years, the highest Beneish M-Score of Revett Mining Co Inc was 79057.49. The lowest was -56.35. And the median was -3.10.


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 (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $0.27 Mil.
Revenue was 2.268 + 0 + 0 + 0 = $2.27 Mil.
Gross Profit was -0.394 + -0.169 + -0.35 + 0 = $-0.91 Mil.
Total Current Assets was $4.40 Mil.
Total Assets was $27.99 Mil.
Property, Plant and Equipment(Net PPE) was $16.30 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.15 Mil.
Selling, General & Admin. Expense(SGA) was $6.95 Mil.
Total Current Liabilities was $5.23 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.526 + -57.403 + -2.051 + -1.635 = $-63.62 Mil.
Non Operating Income was 0 + 0 + 0 + -0.01 = $-0.01 Mil.
Cash Flow from Operations was -1.743 + -3.023 + -1.612 + -2.376 = $-8.75 Mil.
Accounts Receivable was $ Mil.
Revenue was 0.006 + 0.003 + -0.146 + 0 = $ Mil.
Gross Profit was + + + = $ Mil.
Total Current Assets was $ Mil.
Total Assets was $ Mil.
Property, Plant and Equipment(Net PPE) was $ Mil.
Depreciation, Depletion and Amortization(DDA) was $ Mil.
Selling, General & Admin. Expense(SGA) was $ Mil.
Total Current Liabilities was $ Mil.
Long-Term Debt was $ 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)
=(0.268 / 2.268) / ( / -0.137)
=0.11816578 /
=

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)
=(-0.169 / -0.137) / (-0.394 / 2.268)
= / -0.40255732
=

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 - (4.404 + 16.303) / 27.991) / (1 - ( + 67.011) / )
=0.2602265 /
=

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
=2.268 / -0.137
=

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))
=(0.03 / (0.03 + 67.011)) / (0.145 / (0.145 + 16.303))
= / 0.00881566
=

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)
=(6.953 / 2.268) / ( / -0.137)
=3.06569665 /
=

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 + 5.229) / 27.991) / (( + ) / )
=0.18681005 /
=

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
=(-63.615 - -0.01 - -8.754) / 27.991
=-1.9596

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.54585.99792.02220.88180.0922600.91340.0836
GMI -5.9566-1.16740.11660.68111.7335-0.0120.1136
AQI 1.78361.01570.54891.090.82051.1122.5535
SGI 0.92430.92071.42041.49160.84450.00120.0822
DEPI 0.80020.64171.08251.04941.061480.35920.0732
SGAI 1.33570.55181.00461.16961.13811905.22845.667
LVGI 0.81791.09960.51360.97040.90090.56954.9431
TATA -0.0488-0.068-0.0141-0.0926-0.06350.098-1.7281
M-score -6.570.59-1.71-2.73-3.422,070.26-14.27

Revett Mining Co Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.0920.0560.0040.39962600.82553627.038885377.008219.90970.08360.0074
GMI 1.73372.47481.9314-0.6931-0.0159-0.0112-0.01160.00580.157733.4846
AQI 0.82050.9230.99331.32481.1120.98241.00670.76662.55352.8622
SGI 0.84450.52630.37580.09850.0012-0.0034-0.00510.00120.082231.0685
DEPI 1.06141.37281.9624.594280.359267.320252.054424.49410.07320.0557
SGAI 1.1385.22854.915221.77431905.445788.5143469.7194434.11335.6670.0141
LVGI 0.90090.62860.53270.44560.56950.69340.55021.67714.94314.6864
TATA -0.0626-0.02490.05760.09490.0980.04390.0193-0.0098-1.7689-1.9596
M-score -3.42-3.70-3.60-7.132,070.143,204.5278,467.51-58.65-14.4331.02
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