Switch to:
Silver Wheaton Corp (NYSE:SLW)
Beneish M-Score
-2.74 (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 -2.84 suggests that the company is not a manipulator.

SLW' s Beneish M-Score Range Over the Past 10 Years
Min: -56.61   Max: 169.06
Current: -2.74

-56.61
169.06

During the past 13 years, the highest Beneish M-Score of Silver Wheaton Corp was 169.06. The lowest was -56.61. 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 * 0.6591+0.528 * 1.3275+0.404 * 0.9762+0.892 * 1.2057+0.115 * 0.7003
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7965+4.679 * -0.0428-0.327 * 1.5869
=-2.84

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1.3 Mil.
Revenue was 187.511 + 200.496 + 153.251 + 164.435 = $705.7 Mil.
Gross Profit was 59.531 + 71.288 + 61.295 + 63.313 = $255.4 Mil.
Total Current Assets was $90.3 Mil.
Total Assets was $5,563.1 Mil.
Property, Plant and Equipment(Net PPE) was $5,422.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $238.6 Mil.
Selling, General & Admin. Expense(SGA) was $34.2 Mil.
Total Current Liabilities was $34.3 Mil.
Long-Term Debt was $1,371.0 Mil.
Net Income was 40.979 + -169.262 + -95.925 + 53.726 = $-170.5 Mil.
Non Operating Income was -1.185 + -232.031 + -154.554 + -0.783 = $-388.6 Mil.
Cash Flow from Operations was 113.754 + 133.389 + 99.547 + 109.292 = $456.0 Mil.
Accounts Receivable was $1.7 Mil.
Revenue was 130.504 + 140.375 + 165.852 + 148.57 = $585.3 Mil.
Gross Profit was 63.995 + 60.933 + 81.609 + 74.688 = $281.2 Mil.
Total Current Assets was $91.7 Mil.
Total Assets was $5,268.1 Mil.
Property, Plant and Equipment(Net PPE) was $5,127.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $156.0 Mil.
Selling, General & Admin. Expense(SGA) was $35.6 Mil.
Total Current Liabilities was $38.6 Mil.
Long-Term Debt was $800.0 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)
=(1.339 / 705.693) / (1.685 / 585.301)
=0.00189743 / 0.00287886
=0.6591

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)
=(281.225 / 585.301) / (255.427 / 705.693)
=0.48047927 / 0.36195201
=1.3275

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 - (90.302 + 5422.943) / 5563.144) / (1 - (91.737 + 5127.933) / 5268.074)
=0.00896957 / 0.00918818
=0.9762

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
=705.693 / 585.301
=1.2057

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))
=(155.96 / (155.96 + 5127.933)) / (238.635 / (238.635 + 5422.943))
=0.02951612 / 0.04214991
=0.7003

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)
=(34.155 / 705.693) / (35.565 / 585.301)
=0.04839923 / 0.06076361
=0.7965

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)
=((1371 + 34.26) / 5563.144) / ((800 + 38.586) / 5268.074)
=0.25260177 / 0.15918265
=1.5869

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
=(-170.482 - -388.553 - 455.982) / 5563.144
=-0.0428

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 -2.84 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.2191.05780.56894.4050.82080.31831.30520.940.57780.3326
GMI 0.69890.9411.14381.10340.84020.83241.08161.24031.2021.2432
AQI 1.660.1110.18421.81313.2260.49810.71170.27510.77840.6915
SGI 2.23631.10660.95031.43531.76921.72431.16380.83160.87781.046
DEPI 150.52881.27720.73710.71630.98110.70261.29360.90881.0352
SGAI 1.04311.5381.8110.69570.80660.58581.05551.37761.21930.8053
LVGI 4.372110.94920.85370.41040.76840.79830.293510.43610.94031.2025
TATA -0.03-0.0125-0.0219-0.0218-0.0181-0.0266-0.0421-0.0335-0.0348-0.0363
M-score -3.24-0.43-3.341.54-1.15-2.74-2.14-6.12-3.15-3.25

Silver Wheaton Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.940.51551.69940.3810.57780.90320.561.34510.33260.6591
GMI 1.24031.33681.28061.2251.2021.13621.19441.23271.24321.3275
AQI 0.27510.66621.5591.06350.77840.59990.3520.37770.69150.9762
SGI 0.83160.77840.78880.78330.87780.87870.92810.90941.0461.2057
DEPI 1.29350.7180.83620.96960.90891.18581.06771.051.03520.7003
SGAI 1.10521.09831.70171.51981.52871.43670.96810.97740.80530.7965
LVGI 10.43610.8820.850.91010.94030.6840.62590.60391.20251.5869
TATA -0.0335-0.034-0.0317-0.0327-0.0348-0.0313-0.0349-0.0347-0.0362-0.0428
M-score -6.08-3.25-1.89-3.31-3.21-2.86-3.14-2.40-3.25-2.84
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)
FEEDBACK