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Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-3.08 (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 -3.09 suggests that the company is not a manipulator.

TCK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.65   Max: -0.62
Current: -3.08

-3.65
-0.62

During the past 13 years, the highest Beneish M-Score of Teck Resources Ltd was -0.62. The lowest was -3.65. And the median was -2.65.


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 * 1.0453+0.528 * 1.2578+0.404 * 1.0822+0.892 * 0.8099+0.115 * 0.9856
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1733+4.679 * -0.1269-0.327 * 1.0828
=-3.09

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $727 Mil.
Revenue was 1283.83487071 + 1556.91679428 + 1583.74792703 + 1616.65992721 = $6,041 Mil.
Gross Profit was 117.193406926 + 204.915044119 + 255.540479421 + 251.51637687 = $829 Mil.
Total Current Assets was $3,117 Mil.
Total Assets was $25,567 Mil.
Property, Plant and Equipment(Net PPE) was $20,172 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,021 Mil.
Selling, General & Admin. Expense(SGA) was $109 Mil.
Total Current Liabilities was $1,364 Mil.
Long-Term Debt was $6,533 Mil.
Net Income was 71.0721306517 + -334.718879895 + -1617.66922961 + 50.9502628387 = $-1,830 Mil.
Non Operating Income was 43.8530167851 + -33.5448114927 + -48.9974370571 + -21.0270926001 = $-60 Mil.
Cash Flow from Operations was 282.020263118 + 500.984467294 + 422.131765415 + 268.499797816 = $1,474 Mil.
Accounts Receivable was $859 Mil.
Revenue was 1604.05769536 + 1956.29552549 + 2043.41113432 + 1855.03231764 = $7,459 Mil.
Gross Profit was 275.796481217 + 360.735345127 + 375.987648715 + 275.161588181 = $1,288 Mil.
Total Current Assets was $3,615 Mil.
Total Assets was $29,772 Mil.
Property, Plant and Equipment(Net PPE) was $23,706 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,182 Mil.
Selling, General & Admin. Expense(SGA) was $115 Mil.
Total Current Liabilities was $1,562 Mil.
Long-Term Debt was $6,930 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)
=(727.355209436 / 6041.15951924) / (859.090188619 / 7458.79667281)
=0.12039993 / 0.11517812
=1.0453

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)
=(1287.68106324 / 7458.79667281) / (829.165307336 / 6041.15951924)
=0.17263925 / 0.13725268
=1.2578

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 - (3117.34462423 + 20172.3877212) / 25567.0648722) / (1 - (3615.46996354 + 23705.8170867) / 29771.7546362)
=0.0890729 / 0.08230847
=1.0822

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
=6041.15951924 / 7458.79667281
=0.8099

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))
=(1181.83949214 / (1181.83949214 + 23705.8170867)) / (1021.16404952 / (1021.16404952 + 20172.3877212))
=0.04748697 / 0.04818277
=0.9856

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)
=(108.990542867 / 6041.15951924) / (114.693734281 / 7458.79667281)
=0.01804133 / 0.01537698
=1.1733

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)
=((6532.58732799 + 1363.98003932) / 25567.0648722) / ((6929.7828499 + 1562.05420827) / 29771.7546362)
=0.30885702 / 0.28523133
=1.0828

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
=(-1830.36571601 - -59.7163243648 - 1473.63629364) / 25567.0648722
=-0.1269

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 -3.09 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.91990.84122.97280.45780.91130.93451.15181.0570.91751.1206
GMI 0.77681.21351.14961.17690.93590.89871.42891.14641.45521.1474
AQI 0.54323.26590.54961.12920.93950.90670.96610.69221.13131.0957
SGI 1.49261.12120.87991.30141.27251.21360.92910.8440.84560.8077
DEPI 1.1171.57691.94360.52920.98281.06791.03070.86530.95610.9152
SGAI 0.7481.28090.7311.51411.14950.45031.0371.04571.1080.9617
LVGI 0.85680.74962.17850.67870.73761.12620.99631.06021.04171.1547
TATA -0.03790.016-0.0519-0.0653-0.0393-0.0433-0.0321-0.0504-0.0644-0.1223
M-score -2.49-1.32-1.35-2.91-2.50-2.58-2.34-2.89-2.74-3.05

Teck Resources Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02390.94821.1160.98770.9071.11421.08470.90941.09991.0453
GMI 1.31561.3641.46761.45531.45221.35561.17711.13011.14821.2578
AQI 0.69220.76840.76150.7221.13131.02731.0271.14581.09571.0822
SGI 0.87120.85640.86810.83750.85550.86360.85910.84430.82290.8099
DEPI 0.86680.92440.94410.98350.94460.94330.96880.86860.89790.9856
SGAI 0.9210.96210.85060.71870.99261.00540.90561.25781.08561.1733
LVGI 1.06021.05480.99911.04931.04171.09341.09131.21431.15471.0828
TATA -0.0519-0.0533-0.0466-0.0475-0.0506-0.0479-0.0432-0.111-0.1264-0.1269
M-score -2.79-2.83-2.54-2.70-2.66-2.56-2.64-3.22-3.10-3.09
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