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Silver Wheaton Corp (NYSE:SLW)
Beneish M-Score
-3.32 (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.

Silver Wheaton Corp has a M-score of -3.38 suggests that the company is not a manipulator.

SLW' s 10-Year Beneish M-Score Range
Min: -56.49   Max: 170.36
Current: -3.32

-56.49
170.36

During the past 13 years, the highest Beneish M-Score of Silver Wheaton Corp was 170.36. The lowest was -56.49. And the median was -2.77.


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 Silver Wheaton Corp 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 * 0.381+0.528 * 1.225+0.404 * 1.0635+0.892 * 0.7833+0.115 * 0.9696
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5198+4.679 * -0.0474-0.327 * 0.9101
=-3.38

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1.2 Mil.
Revenue was 165.852 + 148.57 + 165.379 + 167.416 = $647.2 Mil.
Gross Profit was 81.609 + 74.688 + 91.67 + 90.285 = $338.3 Mil.
Total Current Assets was $236.3 Mil.
Total Assets was $4,618.1 Mil.
Property, Plant and Equipment(Net PPE) was $4,309.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $159.3 Mil.
Selling, General & Admin. Expense(SGA) was $35.7 Mil.
Total Current Liabilities was $15.4 Mil.
Long-Term Debt was $998.3 Mil.
Net Income was 4.496 + 63.492 + 79.809 + 93.9 = $241.7 Mil.
Non Operating Income was 0.57 + -1.097 + -0.657 + -0.704 = $-1.9 Mil.
Cash Flow from Operations was 120.379 + 102.543 + 114.832 + 124.591 = $462.3 Mil.
Accounts Receivable was $4.0 Mil.
Revenue was 166.405 + 166.89 + 205.761 + 287.241 = $826.3 Mil.
Gross Profit was 90.642 + 91.031 + 151.01 + 196.325 = $529.0 Mil.
Total Current Assets was $69.1 Mil.
Total Assets was $4,398.4 Mil.
Property, Plant and Equipment(Net PPE) was $4,264.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $152.6 Mil.
Selling, General & Admin. Expense(SGA) was $30.0 Mil.
Total Current Liabilities was $20.9 Mil.
Long-Term Debt was $1,040.0 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)
=(1.183 / 647.217) / (3.964 / 826.297)
=0.00182783 / 0.00479731
=0.381

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)
=(74.688 / 826.297) / (81.609 / 647.217)
=0.64021532 / 0.52262533
=1.225

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 - (236.322 + 4309.739) / 4618.131) / (1 - (69.064 + 4264.839) / 4398.445)
=0.01560588 / 0.01467382
=1.0635

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
=647.217 / 826.297
=0.7833

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))
=(152.647 / (152.647 + 4264.839)) / (159.264 / (159.264 + 4309.739))
=0.03455517 / 0.03563748
=0.9696

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)
=(35.716 / 647.217) / (30.003 / 826.297)
=0.05518396 / 0.03631019
=1.5198

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)
=((998.252 + 15.447) / 4618.131) / ((1039.951 + 20.87) / 4398.445)
=0.21950417 / 0.24118092
=0.9101

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
=(241.697 - -1.888 - 462.345) / 4618.131
=-0.0474

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.

Silver Wheaton Corp has a M-score of -3.38 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.

Silver Wheaton Corp Annual Data

Aug04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 10.18870.2191.05780.56894.4050.82080.31831.30520.5
GMI 11.41990.82840.96170.94421.10340.84020.83241.08161.2403
AQI 10.82481.660.1110.18421.81313.2260.49810.71170.3556
SGI 197.78622.23631.10660.95031.43531.76921.72431.16380.8316
DEPI 10.1485150.52881.27720.73710.71630.98110.70261.2895
SGAI 11.61961.04311.5381.8280.68920.79780.59231.05551.3776
LVGI 10.03174.372110.94920.85370.41040.76840.79830.293510.4361
TATA 0.0969-0.0179-0.0274-0.0208-0.0227-0.0218-0.0631-0.0256-0.0417-0.0335
M-score -2.0383.29-3.16-0.46-3.451.54-1.36-2.74-2.13-6.50

Silver Wheaton Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.53960.72111.30520.76730.39950.38960.50.51551.69940.381
GMI 0.98041.02551.08161.09621.14151.2111.24031.33681.28061.225
AQI 0.4970.94480.71170.4810.34870.29380.35560.66621.5591.0635
SGI 1.3071.09671.16381.10921.05531.09560.83160.77840.78880.7833
DEPI 0.77240.98420.70251.31021.26740.8551.28950.7180.83620.9696
SGAI 0.86220.9861.05241.15390.96861.00761.10521.09831.70171.5198
LVGI 0.83580.26890.29353.26553.817210.779610.43610.8820.850.9101
TATA -0.0324-0.0253-0.0417-0.033-0.0367-0.0437-0.0335-0.034-0.0316-0.0474
M-score -2.94-2.54-2.13-3.64-4.23-6.55-6.45-3.25-1.89-3.38
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