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Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-2.59 (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.

Teck Resources Ltd has a M-score of -2.66 suggests that the company is not a manipulator.

TCK' s 10-Year Beneish M-Score Range
Min: -3.2   Max: -0.67
Current: -2.59

-3.2
-0.67

During the past 13 years, the highest Beneish M-Score of Teck Resources Ltd was -0.67. The lowest was -3.20. And the median was -2.59.


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 Teck Resources Ltd 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 * 0.907+0.528 * 1.4589+0.404 * 1.1313+0.892 * 0.8555+0.115 * 0.9446
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0042+4.679 * -0.0512-0.327 * 1.0417
=-2.66

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $898 Mil.
Revenue was 1956.29552549 + 2043.41113432 + 1855.03231764 + 1875.78757876 = $7,731 Mil.
Gross Profit was 360.735345127 + 374.171283262 + 272.391505078 + 364.536453645 = $1,372 Mil.
Total Current Assets was $4,264 Mil.
Total Assets was $31,945 Mil.
Property, Plant and Equipment(Net PPE) was $25,082 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,209 Mil.
Selling, General & Admin. Expense(SGA) was $107 Mil.
Total Current Liabilities was $2,089 Mil.
Long-Term Debt was $6,948 Mil.
Net Income was 111.86264308 + 76.2873490146 + 73.8688827331 + 62.1062106211 = $324 Mil.
Non Operating Income was -26.8817204301 + -34.5109436019 + -8.31024930748 + -12.601260126 = $-82 Mil.
Cash Flow from Operations was 644.294138051 + 503.133230406 + 402.585410896 + 490.549054905 = $2,041 Mil.
Accounts Receivable was $1,158 Mil.
Revenue was 2233.08270677 + 2441.00580271 + 2087.29388943 + 2275.390625 = $9,037 Mil.
Gross Profit was 513.157894737 + 577.369439072 + 564.500484966 + 684.5703125 = $2,340 Mil.
Total Current Assets was $5,423 Mil.
Total Assets was $34,007 Mil.
Property, Plant and Equipment(Net PPE) was $26,138 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,187 Mil.
Selling, General & Admin. Expense(SGA) was $124 Mil.
Total Current Liabilities was $2,033 Mil.
Long-Term Debt was $7,203 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)
=(898.369753729 / 7730.52655621) / (1157.89473684 / 9036.7730239)
=0.11621068 / 0.12813144
=0.907

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)
=(374.171283262 / 9036.7730239) / (360.735345127 / 7730.52655621)
=0.25889752 / 0.17745681
=1.4589

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 - (4263.78772112 + 25082.3794658) / 31945.022546) / (1 - (5422.93233083 + 26138.1578947) / 34006.5789474)
=0.081354 / 0.07191222
=1.1313

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
=7730.52655621 / 9036.7730239
=0.8555

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))
=(1187.06570935 / (1187.06570935 + 26138.1578947)) / (1209.09014873 / (1209.09014873 + 25082.3794658))
=0.04344212 / 0.04598793
=0.9446

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)
=(106.801123074 / 7730.52655621) / (124.329694559 / 9036.7730239)
=0.0138155 / 0.0137582
=1.0042

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)
=((6948.49115505 + 2088.9698231) / 31945.022546) / ((7203.0075188 + 2032.89473684) / 34006.5789474)
=0.2829067 / 0.27159163
=1.0417

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
=(324.125085449 - -82.3041734655 - 2040.56183426) / 31945.022546
=-0.0512

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.

Teck Resources Ltd has a M-score of -2.66 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.

Teck Resources Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.13270.91990.84123.0840.38281.0640.92291.15181.0570.9175
GMI 0.72160.77681.21351.3690.98820.9330.90161.24321.31761.4552
AQI 0.91410.54323.26590.54961.12920.93950.90670.96610.69221.1313
SGI 1.35111.49261.12120.84821.351.25671.22890.92910.8440.8456
DEPI 1.01511.1171.57692.1290.48311.00751.04170.99840.89330.9561
SGAI 0.96580.7481.28090.61771.79161.15510.38361.22011.03811.0065
LVGI 1.47920.85680.74962.17850.67870.73761.12620.99631.06021.0417
TATA -0.0519-0.057-0.0018-0.0481-0.0726-0.0355-0.0433-0.0399-0.0504-0.049
M-score -2.62-2.58-1.40-1.10-3.12-2.36-2.57-2.51-2.80-2.65

Teck Resources Ltd Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.97411.19221.00051.03130.95981.02390.94821.1160.98770.907
GMI 1.15221.24321.33191.34411.32731.31561.36521.47151.46141.4589
AQI 0.99770.96610.90110.95121.05530.69220.76840.76150.7221.1313
SGI 0.92680.89760.86230.85480.90910.87120.85640.86810.83750.8555
DEPI 1.06381.03370.90440.90490.83470.86680.92440.94410.98350.9446
SGAI 0.91791.08481.09970.98350.70670.86360.84620.87610.93611.0042
LVGI 0.99670.99631.02261.04220.97311.06021.05480.99911.04931.0417
TATA -0.0476-0.0388-0.0467-0.0442-0.0463-0.0522-0.0541-0.0482-0.0498-0.0512
M-score -2.69-2.47-2.72-2.65-2.58-2.79-2.81-2.55-2.75-2.66
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