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Silver Wheaton Corp (NYSE:SLW)
Beneish M-Score
-0.29 (As of Today)

Warning Sign:

Beneish M-Score -0.29 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.

Silver Wheaton Corp has a M-score of -0.23 signals that the company is a manipulator.

SLW' s 10-Year Beneish M-Score Range
Min: -56.49   Max: 170.36
Current: -0.29

-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 -2.67.


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 * 3.5028+0.528 * 1.2806+0.404 * 1.559+0.892 * 0.7888+0.115 * 0.8362
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7092+4.679 * -0.0316-0.327 * 0.85
=-0.23

* 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 $7.9 Mil.
Revenue was 148.57 + 165.379 + 167.416 + 166.405 = $647.8 Mil.
Gross Profit was 74.688 + 91.67 + 90.285 + 90.642 = $347.3 Mil.
Total Current Assets was $148.9 Mil.
Total Assets was $4,521.6 Mil.
Property, Plant and Equipment(Net PPE) was $4,285.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $153.9 Mil.
Selling, General & Admin. Expense(SGA) was $36.8 Mil.
Total Current Liabilities was $19.9 Mil.
Long-Term Debt was $998.0 Mil.
Net Income was 63.492 + 79.809 + 93.9 + 77.057 = $314.3 Mil.
Non Operating Income was -1.097 + -0.657 + -0.704 + -0.936 = $-3.4 Mil.
Cash Flow from Operations was 102.543 + 114.832 + 124.591 + 118.672 = $460.6 Mil.
Accounts Receivable was $2.9 Mil.
Revenue was 166.89 + 205.761 + 287.241 + 161.273 = $821.2 Mil.
Gross Profit was 91.031 + 151.01 + 196.325 + 125.403 = $563.8 Mil.
Total Current Assets was $41.2 Mil.
Total Assets was $4,396.0 Mil.
Property, Plant and Equipment(Net PPE) was $4,300.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $128.4 Mil.
Selling, General & Admin. Expense(SGA) was $27.3 Mil.
Total Current Liabilities was $21.4 Mil.
Long-Term Debt was $1,142.8 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)
=(7.911 / 647.77) / (2.863 / 821.165)
=0.01221267 / 0.00348651
=3.5028

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)
=(91.67 / 821.165) / (74.688 / 647.77)
=0.68654777 / 0.53612393
=1.2806

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 - (148.921 + 4285.347) / 4521.595) / (1 - (41.174 + 4300.38) / 4396.012)
=0.01931332 / 0.01238805
=1.559

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
=647.77 / 821.165
=0.7888

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))
=(128.35 / (128.35 + 4300.38)) / (153.853 / (153.853 + 4285.347))
=0.02898122 / 0.03465782
=0.8362

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)
=(36.755 / 647.77) / (27.26 / 821.165)
=0.05674082 / 0.03319674
=1.7092

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)
=((997.99 + 19.901) / 4521.595) / ((1142.802 + 21.449) / 4396.012)
=0.22511769 / 0.26484254
=0.85

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
=(314.258 - -3.394 - 460.638) / 4521.595
=-0.0316

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 -0.23 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.

Silver Wheaton Corp Annual Data

Aug04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 10.18070.2191.05780.56894.4050.82080.31831.36890.8963
GMI 11.41990.82840.96170.94421.10340.84020.83241.08161.2403
AQI 10.82481.660.1110.18421.81313.22290.49860.71170.3556
SGI 197.78622.23631.10660.95031.43531.76921.72431.16380.8316
DEPI 10.1485150.52881.27720.73710.71630.98110.70261.2895
SGAI 11.61961.04311.5381.8280.68920.80660.58581.05551.3776
LVGI 10.03174.372110.94920.85370.41040.76750.80060.29310.4361
TATA 0.0969-0.0179-0.0274-0.0208-0.0227-0.0218-0.0181-0.0266-0.0421-0.0335
M-score -2.0383.28-3.16-0.46-3.451.54-1.15-2.74-2.08-6.13

Silver Wheaton Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.51080.53960.72111.36890.76730.45770.57040.89631.22953.5028
GMI 0.90140.98041.02551.08161.09621.14151.2111.24031.33681.2806
AQI 0.47330.4970.94480.71170.4810.34870.29380.35560.66621.559
SGI 1.55661.3071.09671.16381.10921.05531.09560.83160.77840.7888
DEPI 0.86650.77240.98430.70261.31021.26730.85491.28950.7180.8362
SGAI 0.78420.96761.10211.18371.1440.95590.99081.1011.10041.7092
LVGI 0.93470.83580.26890.2933.26553.817210.779610.43610.8820.85
TATA -0.0293-0.0325-0.025-0.0418-0.0332-0.0368-0.044-0.0335-0.034-0.0316
M-score -2.79-2.96-2.56-2.10-3.64-4.17-6.38-6.09-2.59-0.23
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