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Silver Wheaton Corp (NYSE:SLW)
Beneish M-Score
-3.02 (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 -3.14 suggests that the company is not a manipulator.

SLW' s 10-Year Beneish M-Score Range
Min: -56.6   Max: 169.06
Current: -3.02

-56.6
169.06

During the past 13 years, the highest Beneish M-Score of Silver Wheaton Corp was 169.06. 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 * 0.56+0.528 * 1.1944+0.404 * 0.352+0.892 * 0.9281+0.115 * 1.0677
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9681+4.679 * -0.035-0.327 * 0.6259
=-3.14

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1.7 Mil.
Revenue was 164.435 + 130.504 + 140.375 + 165.852 = $601.2 Mil.
Gross Profit was 63.313 + 63.995 + 60.933 + 81.609 = $269.9 Mil.
Total Current Assets was $76.2 Mil.
Total Assets was $5,203.4 Mil.
Property, Plant and Equipment(Net PPE) was $5,091.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $170.8 Mil.
Selling, General & Admin. Expense(SGA) was $33.0 Mil.
Total Current Liabilities was $18.2 Mil.
Long-Term Debt was $715.0 Mil.
Net Income was 53.726 + 49.419 + 52.031 + 4.496 = $159.7 Mil.
Non Operating Income was -0.783 + -1.999 + -68.92 + 0.57 = $-71.1 Mil.
Cash Flow from Operations was 109.292 + 89.131 + 94.12 + 120.379 = $412.9 Mil.
Accounts Receivable was $3.4 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.



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)
=(1.741 / 601.166) / (3.35 / 647.77)
=0.00289604 / 0.00517159
=0.56

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)
=(63.995 / 647.77) / (63.313 / 601.166)
=0.53612393 / 0.44887768
=1.1944

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 - (76.197 + 5091.799) / 5203.371) / (1 - (148.921 + 4285.347) / 4521.595)
=0.00679848 / 0.01931332
=0.352

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
=601.166 / 647.77
=0.9281

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))
=(153.853 / (153.853 + 4285.347)) / (170.828 / (170.828 + 5091.799))
=0.03465782 / 0.03246059
=1.0677

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)
=(33.021 / 601.166) / (36.755 / 647.77)
=0.05492826 / 0.05674082
=0.9681

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)
=((715 + 18.157) / 5203.371) / ((997.99 + 19.901) / 4521.595)
=0.14090039 / 0.22511769
=0.6259

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
=(159.672 - -71.132 - 412.922) / 5203.371
=-0.035

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 -3.14 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 0.244710.23170.56894.4050.82080.31831.36890.47681.9157
GMI 1.417410.79670.94421.10340.84020.83241.08161.24031.202
AQI 1.217810.18430.18421.81313.2260.49810.71170.35560.6022
SGI 122.655712.47460.95031.43531.76921.72431.16380.83160.8778
DEPI 0.2881150.52881.27720.73710.71630.98110.70261.28950.9117
SGAI 0.054811.60431.8280.68920.79780.59231.05551.37761.2193
LVGI 0.1025147.87080.85370.41040.76840.79960.29310.43610.9403
TATA -0.0179-0.0179-0.0208-0.0227-0.0218-0.0631-0.0266-0.0421-0.0335-0.0348
M-score 105.94-2.56-12.14-3.451.54-1.36-2.74-2.08-6.52-1.99

Silver Wheaton Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.76730.39950.38960.47680.51551.69940.3811.91570.90320.56
GMI 1.09621.14151.2111.24031.33681.28061.2251.2021.13621.1944
AQI 0.4810.34870.29380.35560.66621.5591.06350.60220.59990.352
SGI 1.10921.05531.09560.83160.77840.78880.78330.87780.87870.9281
DEPI 1.31021.26730.85491.28950.7180.83620.96960.91171.18581.0677
SGAI 1.13651.19721.21951.37191.38651.36471.24231.22681.14760.9681
LVGI 3.26553.817210.779610.43610.8820.850.91010.94030.6840.6259
TATA -0.033-0.0367-0.0437-0.0335-0.034-0.0317-0.0474-0.0349-0.0314-0.035
M-score -3.64-4.27-6.59-6.52-3.30-1.83-3.34-1.99-2.81-3.14
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