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Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-2.52 (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 -2.54 suggests that the company is not a manipulator.

TCK' s 10-Year Beneish M-Score Range
Min: -3.77   Max: -0.49
Current: -2.52

-3.77
-0.49

During the past 13 years, the highest Beneish M-Score of Teck Resources Ltd was -0.49. The lowest was -3.77. 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 * 1.1072+0.528 * 1.4738+0.404 * 0.7615+0.892 * 0.8683+0.115 * 0.9587
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8399+4.679 * -0.0465-0.327 * 0.9991
=-2.54

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $1,027 Mil.
Revenue was 1870.57728119 + 1896.26933576 + 2171.8464351 + 2436.29343629 = $8,375 Mil.
Gross Profit was 274.674115456 + 368.516833485 + 499.085923218 + 576.254826255 = $1,719 Mil.
Total Current Assets was $4,597 Mil.
Total Assets was $33,764 Mil.
Property, Plant and Equipment(Net PPE) was $26,452 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,224 Mil.
Selling, General & Admin. Expense(SGA) was $109 Mil.
Total Current Liabilities was $1,682 Mil.
Long-Term Debt was $7,139 Mil.
Net Income was 74.4878957169 + 62.7843494086 + 212.065813528 + 257.722007722 = $607 Mil.
Non Operating Income was -8.37988826816 + -12.7388535032 + -41.1334552102 + 1.9305019305 = $-60 Mil.
Cash Flow from Operations was 405.959031657 + 495.905368517 + 702.925045704 + 633.204633205 = $2,238 Mil.
Accounts Receivable was $1,068 Mil.
Revenue was 2069.23076923 + 2286.55544652 + 2752.01612903 + 2537.99392097 = $9,646 Mil.
Gross Profit was 559.615384615 + 687.929342493 + 831.653225806 + 837.89260385 = $2,917 Mil.
Total Current Assets was $5,479 Mil.
Total Assets was $33,626 Mil.
Property, Plant and Equipment(Net PPE) was $24,595 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,089 Mil.
Selling, General & Admin. Expense(SGA) was $149 Mil.
Total Current Liabilities was $1,514 Mil.
Long-Term Debt was $7,278 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)
=(1027.0018622 / 8374.98648835) / (1068.26923077 / 9645.79626575)
=0.12262729 / 0.11074972
=1.1072

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)
=(368.516833485 / 9645.79626575) / (274.674115456 / 8374.98648835)
=0.30242092 / 0.20519815
=1.4738

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 - (4596.83426443 + 26451.5828678) / 33764.4320298) / (1 - (5478.84615385 + 24595.1923077) / 33625.9615385)
=0.08044012 / 0.10563038
=0.7615

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
=8374.98648835 / 9645.79626575
=0.8683

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))
=(1088.87040627 / (1088.87040627 + 24595.1923077)) / (1223.79665275 / (1223.79665275 + 26451.5828678))
=0.04239479 / 0.04421969
=0.9587

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)
=(108.615135118 / 8374.98648835) / (148.944338389 / 9645.79626575)
=0.01296899 / 0.01544137
=0.8399

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)
=((7138.73370577 + 1681.56424581) / 33764.4320298) / ((7277.88461538 + 1514.42307692) / 33625.9615385)
=0.26123046 / 0.26147379
=0.9991

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
=(607.060066376 - -60.3216950511 - 2237.99407908) / 33764.4320298
=-0.0465

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 -2.54 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 0.77240.96580.7481.28090.61771.79161.15510.38361.22011.0381
LVGI 0.82411.47920.85680.74962.17850.67870.73761.12640.99621.0602
TATA -0.0761-0.0519-0.057-0.0018-0.0481-0.0726-0.0355-0.0433-0.0399-0.0504
M-score -2.77-2.61-2.61-1.39-1.09-3.06-2.47-2.52-2.50-2.86

Teck Resources Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.05840.80081.06591.21641.0121.00580.93570.95950.88531.1072
GMI 0.9220.99281.15071.24181.3311.34261.32751.31461.36631.4738
AQI 0.98930.98010.99770.96590.90110.95121.05530.69220.76840.7615
SGI 1.21251.07970.9230.89140.86050.85070.90360.86350.84870.8683
DEPI 0.67890.68450.74521.49211.32721.29311.22220.85330.93750.9587
SGAI 0.48240.52990.79711.27751.29051.14770.88490.82970.81170.8399
LVGI 4.66551.19250.99670.99621.02261.04220.97311.06021.05480.9991
TATA -0.0792-0.1005-0.087-0.039-0.0467-0.0444-0.0468-0.052-0.0519-0.0465
M-score -3.80-3.09-2.81-2.44-2.70-2.66-2.59-2.85-2.86-2.54
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