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Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-3.01 (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 -3.19 suggests that the company is not a manipulator.

TCK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.66   Max: -0.38
Current: -3.01

-3.66
-0.38

During the past 13 years, the highest Beneish M-Score of Teck Resources Ltd was -0.38. The lowest was -3.66. And the median was -2.61.


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 * 0.9094+0.528 * 1.1361+0.404 * 1.1458+0.892 * 0.8443+0.115 * 0.8686
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.067+4.679 * -0.1109-0.327 * 1.2143
=-3.19

* 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 $717 Mil.
Revenue was 1583.74792703 + 1616.65992721 + 1604.05769536 + 1956.29552549 = $6,761 Mil.
Gross Profit was 255.540479421 + 251.51637687 + 275.796481217 + 354.665279223 = $1,138 Mil.
Total Current Assets was $3,328 Mil.
Total Assets was $26,122 Mil.
Property, Plant and Equipment(Net PPE) was $20,406 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,107 Mil.
Selling, General & Admin. Expense(SGA) was $92 Mil.
Total Current Liabilities was $1,426 Mil.
Long-Term Debt was $6,969 Mil.
Net Income was -1617.66922961 + 50.9502628387 + 53.8912664448 + 111.86264308 = $-1,401 Mil.
Non Operating Income was -48.9974370571 + -21.0270926001 + -35.6633380884 + -26.8817204301 = $-133 Mil.
Cash Flow from Operations was 422.131765415 + 268.499797816 + 294.816928198 + 644.294138051 = $1,630 Mil.
Accounts Receivable was $934 Mil.
Revenue was 2043.41113432 + 1855.03231764 + 1875.78757876 + 2233.08270677 = $8,007 Mil.
Gross Profit was 375.987648715 + 275.161588181 + 366.336633663 + 513.157894737 = $1,531 Mil.
Total Current Assets was $4,340 Mil.
Total Assets was $33,101 Mil.
Property, Plant and Equipment(Net PPE) was $26,119 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,223 Mil.
Selling, General & Admin. Expense(SGA) was $102 Mil.
Total Current Liabilities was $1,450 Mil.
Long-Term Debt was $7,310 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)
=(716.870194482 / 6760.7610751) / (933.611842703 / 8007.31373748)
=0.10603395 / 0.11659489
=0.9094

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)
=(251.51637687 / 8007.31373748) / (255.540479421 / 6760.7610751)
=0.19115571 / 0.16825304
=1.1361

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 - (3328.05668627 + 20406.3018242) / 26122.418212) / (1 - (4340.2052493 + 26119.3352102) / 33100.5358278)
=0.09141802 / 0.07978709
=1.1458

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
=6760.7610751 / 8007.31373748
=0.8443

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))
=(1222.60175032 / (1222.60175032 + 26119.3352102)) / (1107.47575744 / (1107.47575744 + 20406.3018242))
=0.04471526 / 0.05147751
=0.8686

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)
=(91.6728556736 / 6760.7610751) / (101.756808757 / 8007.31373748)
=0.01355955 / 0.01270798
=1.067

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)
=((6968.94316297 + 1426.20232172) / 26122.418212) / ((7309.96276451 + 1450.367814) / 33100.5358278)
=0.32137704 / 0.26465827
=1.2143

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
=(-1400.96505725 - -132.569588176 - 1629.74262948) / 26122.418212
=-0.1109

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 -3.19 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 1.13270.91990.84123.0840.44130.92280.92291.15181.0570.9175
GMI 0.72340.7891.19541.33991.03180.94420.90161.24321.31761.4552
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 -2.62-2.57-1.41-1.12-3.04-2.48-2.57-2.51-2.80-2.65

Teck Resources Ltd Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.03130.95981.02390.94821.1160.98770.9071.11421.08470.9094
GMI 1.34411.32731.31561.3641.46761.45531.45861.3621.18281.1361
AQI 0.95121.05530.69220.76840.76150.7221.13131.02731.0271.1458
SGI 0.85480.90910.87120.85640.86810.83750.85550.86360.85910.8443
DEPI 0.90490.83470.86680.92440.94410.98350.94460.94330.96880.8686
SGAI 0.94510.7730.86580.90411.05720.83160.95830.97270.73521.067
LVGI 1.04220.97311.06021.05480.99911.04931.04171.09341.09131.2143
TATA -0.0439-0.0459-0.0505-0.0521-0.0463-0.0479-0.0506-0.0478-0.0431-0.1109
M-score -2.64-2.59-2.78-2.81-2.57-2.72-2.65-2.55-2.61-3.19
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