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Silver Wheaton Corp (NYSE:SLW)
Beneish M-Score
-2.14 (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 -2.33 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: -2.14

-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 -2.73.


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 * 1.345+0.528 * 1.2327+0.404 * 0.3777+0.892 * 0.9094+0.115 * 1.05
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9774+4.679 * -0.0213-0.327 * 0.6039
=-2.33

* 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 + 140.375 = $588.6 Mil.
Gross Profit was 61.295 + 63.313 + 63.995 + 60.933 = $249.5 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 $31.7 Mil.
Total Current Liabilities was $17.1 Mil.
Long-Term Debt was $647.0 Mil.
Net Income was -95.925 + 53.726 + 49.419 + 52.031 = $59.3 Mil.
Non Operating Income was -154.554 + -0.783 + -1.999 + -68.92 = $-226.3 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 + 167.416 = $647.2 Mil.
Gross Profit was 81.609 + 74.688 + 91.67 + 90.285 = $338.3 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 $35.7 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 / 588.565) / (1.183 / 647.217)
=0.00245852 / 0.00182783
=1.345

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 / 647.217) / (61.295 / 588.565)
=0.52262533 / 0.42397356
=1.2327

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
=588.565 / 647.217
=0.9094

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)
=(31.745 / 588.565) / (35.716 / 647.217)
=0.05393627 / 0.05518396
=0.9774

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
=(59.251 - -226.256 - 392.09) / 5009.177
=-0.0213

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 -2.33 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 10.23170.56894.4050.82080.31831.36890.47681.91570.1886
GMI 10.79670.94421.10340.84020.83241.08161.24031.2021.2432
AQI 10.18430.18421.81313.2260.49810.71170.35560.60220.6915
SGI 12.47460.95031.43531.76921.72431.16380.83160.87781.046
DEPI 150.52881.27720.73710.71630.98110.70261.28950.91171.0352
SGAI 11.60431.8280.68920.79780.59231.05551.37761.21930.8053
LVGI 147.87080.85370.41040.76840.79960.29310.43610.94031.2025
TATA -0.0179-0.0208-0.0227-0.0218-0.0631-0.0266-0.0421-0.0335-0.0348-0.0363
M-score -2.56-12.14-3.451.54-1.36-2.74-2.08-6.52-1.99-3.38

Silver Wheaton Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.38960.47680.51551.69940.3811.91570.90320.561.34510.1886
GMI 1.2111.24031.33681.28061.2251.2021.13621.19441.23271.2432
AQI 0.29380.35560.66621.5591.06350.60220.59990.3520.37770.6915
SGI 1.09560.83160.77840.78880.78330.87780.87870.92810.90941.046
DEPI 0.85491.28950.7180.83620.96960.91171.18581.06771.051.0352
SGAI 1.21951.37191.38651.36471.24231.22681.14760.96810.97740.8053
LVGI 10.779610.43610.8820.850.91010.94030.6840.62590.60391.2025
TATA -0.0442-0.0335-0.034-0.0316-0.0474-0.0348-0.0314-0.035-0.0213-0.0362
M-score -6.59-6.52-3.30-1.83-3.34-1.99-2.81-3.14-2.33-3.38
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