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Silver Wheaton Corp (NYSE:SLW)
Beneish M-Score
-1.32 (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 -1.34 signals that the company is a manipulator.

SLW' s Beneish M-Score Range Over the Past 10 Years
Min: -56.61   Max: 169.06
Current: -1.32

-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 -2.74.


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 * 1.5739+0.528 * 1.2567+0.404 * 2.1158+0.892 * 1.2536+0.115 * 0.6991
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8724+4.679 * -0.0459-0.327 * 0.919
=-1.34

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $3.4 Mil.
Revenue was 212.351 + 187.511 + 200.496 + 153.251 = $753.6 Mil.
Gross Profit was 77.069 + 59.531 + 71.288 + 61.295 = $269.2 Mil.
Total Current Assets was $131.3 Mil.
Total Assets was $5,561.2 Mil.
Property, Plant and Equipment(Net PPE) was $5,349.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $260.5 Mil.
Selling, General & Admin. Expense(SGA) was $36.1 Mil.
Total Current Liabilities was $14.1 Mil.
Long-Term Debt was $706.0 Mil.
Net Income was 60.306 + 40.979 + -169.262 + -95.925 = $-163.9 Mil.
Non Operating Income was -1.639 + -1.185 + -232.031 + -154.554 = $-389.4 Mil.
Cash Flow from Operations was 134.267 + 113.754 + 133.389 + 99.547 = $481.0 Mil.
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.



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)
=(3.435 / 753.609) / (1.741 / 601.166)
=0.00455807 / 0.00289604
=1.5739

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)
=(269.85 / 601.166) / (269.183 / 753.609)
=0.44887768 / 0.35719186
=1.2567

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 - (131.293 + 5349.921) / 5561.209) / (1 - (76.197 + 5091.799) / 5203.371)
=0.01438446 / 0.00679848
=2.1158

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
=753.609 / 601.166
=1.2536

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))
=(170.828 / (170.828 + 5091.799)) / (260.495 / (260.495 + 5349.921))
=0.03246059 / 0.0464306
=0.6991

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)
=(36.114 / 753.609) / (33.021 / 601.166)
=0.0479214 / 0.05492826
=0.8724

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)
=((706 + 14.073) / 5561.209) / ((715 + 18.157) / 5203.371)
=0.12948138 / 0.14090039
=0.919

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
=(-163.902 - -389.409 - 480.957) / 5561.209
=-0.0459

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 -1.34 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.2191.05780.56894.4050.82080.31831.36890.47681.91570.1886
GMI 0.82840.96170.94421.10340.84020.83241.08161.24031.2021.2432
AQI 1.660.1110.18421.81313.2260.49810.71170.35560.60220.6915
SGI 2.23631.10660.95031.43531.76921.72431.16380.83160.87781.046
DEPI 150.52881.27720.73710.71630.98110.70261.28950.91171.0352
SGAI 1.04311.5381.8280.68920.79780.59231.05551.37761.21930.8053
LVGI 4.372110.94920.85370.41040.76840.79960.29310.43610.94031.2025
TATA -0.0274-0.0208-0.0227-0.0218-0.0631-0.0266-0.0421-0.0335-0.0348-0.0363
M-score -3.16-0.46-3.451.54-1.36-2.74-2.08-6.52-1.99-3.38

Silver Wheaton Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.51551.69940.3811.91570.90320.561.34510.18860.65911.5739
GMI 1.33681.28061.2251.2021.13621.19441.23271.24321.32751.2567
AQI 0.66621.5591.06350.60220.59990.3520.37770.69150.97622.1158
SGI 0.77840.78880.78330.87780.87870.92810.90941.0461.20571.2536
DEPI 0.7180.83620.96960.91171.18581.06771.051.03520.70030.6991
SGAI 1.38651.36471.24231.22681.14760.96810.97740.80530.79650.8724
LVGI 0.8820.850.91010.94030.6840.62590.60391.20251.58690.919
TATA -0.034-0.0316-0.0474-0.0348-0.0314-0.035-0.0212-0.0362-0.0427-0.0459
M-score -3.30-1.83-3.34-1.99-2.81-3.14-2.33-3.38-2.84-1.34
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