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Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-2.77 (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 -2.87 suggests that the company is not a manipulator.

TCK' s 10-Year Beneish M-Score Range
Min: -3.2   Max: -0.67
Current: -2.77

-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 -2.64.


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 * 0.9595+0.528 * 1.3146+0.404 * 0.6922+0.892 * 0.8635+0.115 * 0.8533
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9233+4.679 * -0.0529-0.327 * 1.0602
=-2.87

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,191 Mil.
Revenue was 2171.8464351 + 2436.29343629 + 2069.23076923 + 2286.55544652 = $8,964 Mil.
Gross Profit was 499.085923218 + 576.254826255 + 559.615384615 + 687.929342493 = $2,323 Mil.
Total Current Assets was $5,274 Mil.
Total Assets was $33,074 Mil.
Property, Plant and Equipment(Net PPE) was $25,421 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,177 Mil.
Selling, General & Admin. Expense(SGA) was $132 Mil.
Total Current Liabilities was $1,977 Mil.
Long-Term Debt was $7,005 Mil.
Net Income was 212.065813528 + 257.722007722 + 137.5 + 313.052011776 = $920 Mil.
Non Operating Income was -41.1334552102 + 1.9305019305 + -25 + -13.7389597645 = $-78 Mil.
Cash Flow from Operations was 702.925045704 + 633.204633205 + 663.461538462 + 748.773307164 = $2,748 Mil.
Accounts Receivable was $1,438 Mil.
Revenue was 2752.01612903 + 2537.99392097 + 2525.64102564 + 2564.95468278 = $10,381 Mil.
Gross Profit was 831.653225806 + 837.89260385 + 867.850098619 + 998.992950655 = $3,536 Mil.
Total Current Assets was $6,528 Mil.
Total Assets was $35,338 Mil.
Property, Plant and Equipment(Net PPE) was $25,138 Mil.
Depreciation, Depletion and Amortization(DDA) was $986 Mil.
Selling, General & Admin. Expense(SGA) was $165 Mil.
Total Current Liabilities was $1,835 Mil.
Long-Term Debt was $7,218 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)
=(1191.04204753 / 8963.92608714) / (1437.5 / 10380.6057584)
=0.13287058 / 0.13847939
=0.9595

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)
=(576.254826255 / 10380.6057584) / (499.085923218 / 8963.92608714)
=0.34067269 / 0.25913706
=1.3146

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 - (5274.22303473 + 25421.3893967) / 33074.0402194) / (1 - (6528.22580645 + 25138.1048387) / 35337.7016129)
=0.07191222 / 0.10389388
=0.6922

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
=8963.92608714 / 10380.6057584
=0.8635

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))
=(986.366930473 / (986.366930473 + 25138.1048387)) / (1176.96348841 / (1176.96348841 + 25421.3893967))
=0.03775644 / 0.04424949
=0.8533

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)
=(131.915340962 / 8963.92608714) / (165.449134699 / 10380.6057584)
=0.01471625 / 0.01593829
=0.9233

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)
=((7005.48446069 + 1977.14808044) / 33074.0402194) / ((7217.74193548 + 1834.67741935) / 35337.7016129)
=0.27159163 / 0.25616888
=1.0602

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
=(920.339833027 - -77.9419130442 - 2748.36452453) / 33074.0402194
=-0.0529

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 -2.87 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.7511.13270.91990.84123.0840.44130.93650.98331.1821.0073
GMI 0.41750.72160.77681.21351.3690.98820.9330.90161.24321.3176
AQI 0.93770.91410.54323.26590.54961.12920.93950.90690.96590.6922
SGI 1.62781.36361.45711.13450.86121.3531.26231.2250.91730.8225
DEPI 0.77331.01511.1171.57692.1290.48311.00751.04140.99860.8933
SGAI 0.77240.96580.7481.28090.61771.79160.60630.73091.22011.0381
LVGI 0.82411.47920.85680.74962.17850.67870.73761.12640.99621.0602
TATA -0.0761-0.0519-0.057-0.0018-0.0481-0.0726-0.0297-0.0433-0.0399-0.0504
M-score -2.77-2.61-2.61-1.39-1.09-3.06-2.35-2.58-2.50-2.86

Teck Resources Ltd Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.86651.25821.4111.08041.47580.90990.75910.74550.67580.9595
GMI 0.860.8920.90970.99441.19871.25691.34891.34051.27431.3146
AQI 0.79570.90690.98930.98010.99770.96590.90110.95121.05530.6922
SGI 1.35560.95740.90950.80030.66661.19161.14711.14771.25110.8635
DEPI 1.03460.68630.67890.68450.74521.49211.32721.29311.22220.8533
SGAI 0.49770.5630.79440.85651.54811.54271.50711.45411.00120.9233
LVGI 1.04031.12644.66551.19250.99670.99621.02261.04220.97311.0602
TATA -0.0386-0.0999-0.0952-0.1167-0.1026-0.039-0.0467-0.0453-0.0477-0.0529
M-score -2.55-2.84-3.88-3.22-2.84-2.49-2.70-2.69-2.58-2.87
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