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Silver Wheaton Corp (NYSE:SLW)
Beneish M-Score
-2.73 (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 -2.86 suggests that the company is not a manipulator.

SLW' s 10-Year Beneish M-Score Range
Min: -56.6   Max: 169.08
Current: -2.73

-56.6
169.08

During the past 13 years, the highest Beneish M-Score of Silver Wheaton Corp was 169.08. The lowest was -56.60. 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 * 0.9032+0.528 * 1.1362+0.404 * 0.5999+0.892 * 0.8787+0.115 * 1.1858
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4367+4.679 * -0.0314-0.327 * 0.684
=-2.86

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 49.419 + 52.031 + 4.496 + 63.492 = $169.4 Mil.
Non Operating Income was -1.999 + -68.92 + 0.57 + -1.097 = $-71.4 Mil.
Cash Flow from Operations was 89.131 + 94.12 + 120.379 + 102.543 = $406.2 Mil.
Accounts Receivable was $2.1 Mil.
Revenue was 165.379 + 167.416 + 166.405 + 166.89 = $666.1 Mil.
Gross Profit was 91.67 + 90.285 + 90.642 + 91.031 = $363.6 Mil.
Total Current Assets was $88.2 Mil.
Total Assets was $4,476.9 Mil.
Property, Plant and Equipment(Net PPE) was $4,320.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $156.7 Mil.
Selling, General & Admin. Expense(SGA) was $28.2 Mil.
Total Current Liabilities was $44.1 Mil.
Long-Term Debt was $997.8 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)
=(1.685 / 585.301) / (2.123 / 666.09)
=0.00287886 / 0.00318726
=0.9032

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)
=(60.933 / 666.09) / (63.995 / 585.301)
=0.54591422 / 0.48047927
=1.1362

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 - (91.737 + 5127.933) / 5268.074) / (1 - (88.246 + 4320.048) / 4476.865)
=0.00918818 / 0.01531675
=0.5999

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
=585.301 / 666.09
=0.8787

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))
=(156.69 / (156.69 + 4320.048)) / (155.96 / (155.96 + 5127.933))
=0.03500093 / 0.02951612
=1.1858

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)
=(35.565 / 585.301) / (28.171 / 666.09)
=0.06076361 / 0.04229308
=1.4367

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)
=((800 + 38.586) / 5268.074) / ((997.75 + 44.054) / 4476.865)
=0.15918265 / 0.23270838
=0.684

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
=(169.438 - -71.446 - 406.173) / 5268.074
=-0.0314

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 -2.86 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 0.244710.23170.56894.4050.82080.31831.30520.941.019
GMI 1.417410.79670.94421.10340.84020.83241.08161.24031.202
AQI 1.217810.18430.18421.81313.2260.49810.71170.27510.7784
SGI 122.655712.47460.95031.43531.76921.72431.16380.83160.8778
DEPI 0.2881150.52881.27720.73710.71630.98110.70261.29360.9088
SGAI 0.054811.60431.8280.68920.79780.59231.05551.37761.2193
LVGI 0.1025147.87080.85370.41040.76840.79830.293510.43610.9403
TATA -0.0179-0.0179-0.0208-0.0227-0.0218-0.0631-0.0256-0.0417-0.0335-0.0348
M-score 105.94-2.56-12.14-3.451.54-1.36-2.74-2.13-6.12-2.75

Silver Wheaton Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.30520.76730.39950.38960.940.51551.69940.3811.0190.9032
GMI 1.08161.09621.14151.2111.24031.33681.28061.2251.2021.1362
AQI 0.71170.4810.34870.29380.27510.66621.5591.06350.77840.5999
SGI 1.16381.10921.05531.09560.83160.77840.78880.78330.87780.8787
DEPI 0.70251.31021.26740.8551.29350.7180.83620.96960.90891.1858
SGAI 1.05241.15390.96861.00761.10521.09831.70171.51981.52871.4367
LVGI 0.29353.26553.817210.779610.43610.8820.850.91010.94030.684
TATA -0.0417-0.033-0.0367-0.0437-0.0335-0.034-0.0316-0.0474-0.0348-0.0314
M-score -2.13-3.64-4.23-6.55-6.08-3.25-1.89-3.38-2.80-2.86
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