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Silver Wheaton Corp (NYSE:SLW)
Beneish M-Score
-2.23 (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 -2.44 suggests that the company is not a manipulator.

SLW' s Beneish M-Score Range Over the Past 10 Years
Min: -56.6   Max: 169.07
Current: -2.23

-56.6
169.07

During the past 13 years, the highest Beneish M-Score of Silver Wheaton Corp was 169.07. The lowest was -56.60. And the median was -2.78.


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 * 1.3094+0.528 * 1.2281+0.404 * 0.3777+0.892 * 0.9341+0.115 * 1.05
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8541+4.679 * -0.0454-0.327 * 0.6039
=-2.44

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1.4 Mil.
Revenue was 153.251 + 164.435 + 130.504 + 0 = $448.2 Mil.
Gross Profit was 61.295 + 63.313 + 63.995 + 0 = $188.6 Mil.
Total Current Assets was $84.1 Mil.
Total Assets was $5,009.2 Mil.
Property, Plant and Equipment(Net PPE) was $4,895.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $172.0 Mil.
Selling, General & Admin. Expense(SGA) was $22.9 Mil.
Total Current Liabilities was $17.1 Mil.
Long-Term Debt was $647.0 Mil.
Net Income was -95.925 + 53.726 + 49.419 + 0 = $7.2 Mil.
Non Operating Income was -154.554 + -0.783 + -1.999 + 0 = $-157.3 Mil.
Cash Flow from Operations was 99.547 + 109.292 + 89.131 + 94.12 = $392.1 Mil.
Accounts Receivable was $1.2 Mil.
Revenue was 165.852 + 148.57 + 165.379 + 0 = $479.8 Mil.
Gross Profit was 81.609 + 74.688 + 91.67 + 0 = $248.0 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 $28.6 Mil.
Total Current Liabilities was $15.4 Mil.
Long-Term Debt was $998.3 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)
=(1.447 / 448.19) / (1.183 / 479.801)
=0.00322854 / 0.00246561
=1.3094

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)
=(63.313 / 479.801) / (61.295 / 448.19)
=0.51681218 / 0.42081037
=1.2281

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 - (84.083 + 4895.566) / 5009.177) / (1 - (236.322 + 4309.739) / 4618.131)
=0.00589478 / 0.01560588
=0.3777

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
=448.19 / 479.801
=0.9341

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))
=(159.264 / (159.264 + 4309.739)) / (172.003 / (172.003 + 4895.566))
=0.03563748 / 0.03394192
=1.05

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)
=(22.85 / 448.19) / (28.639 / 479.801)
=0.05098284 / 0.05968933
=0.8541

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)
=((647 + 17.054) / 5009.177) / ((998.252 + 15.447) / 4618.131)
=0.13256749 / 0.21950417
=0.6039

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
=(7.22 - -157.336 - 392.09) / 5009.177
=-0.0454

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 -2.44 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.244710.23170.56894.4050.82080.31831.30520.941.019
GMI 1.417410.79670.94421.10340.84020.83241.08161.24031.202
AQI 1.217810.18430.18421.81313.2260.49810.71170.27510.7784
SGI 122.655712.47460.95031.43531.76921.72431.16380.83160.8778
DEPI 0.2881150.52881.27720.73710.71630.98110.70261.29360.9088
SGAI 0.054811.60431.8280.68920.79780.59231.05551.37761.2193
LVGI 0.1025147.87080.85370.41040.76840.79830.293510.43610.9403
TATA -0.0179-0.0179-0.0208-0.0227-0.0218-0.0631-0.0256-0.0417-0.0335-0.0348
M-score 105.94-2.56-12.14-3.451.54-1.36-2.74-2.13-6.12-2.75

Silver Wheaton Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.46290.44530.81540.45741.490.33531.0050.88960.54181.3094
GMI 1.13921.25211.25211.3741.28631.19421.19421.10711.18011.2281
AQI 0.34870.29380.27510.66621.5591.06350.77840.59990.3520.3777
SGI 0.91080.95860.95860.87730.89970.89010.89010.89220.95930.9341
DEPI 1.26740.8551.29350.7180.83620.96960.90891.18581.06771.05
SGAI 0.95841.02211.02211.00861.80561.541.541.41710.84740.8541
LVGI 3.817210.779610.43610.8820.850.91010.94030.6840.62590.6039
TATA -0.0775-0.0844-0.0551-0.0552-0.0526-0.053-0.0461-0.0413-0.045-0.0454
M-score -4.49-6.79-6.16-3.28-2.10-3.38-2.86-2.92-3.16-2.44
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