Switch to:
Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-2.69 (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 -2.75 suggests that the company is not a manipulator.

TCK' s 10-Year Beneish M-Score Range
Min: -3.66   Max: -0.42
Current: -2.69

-3.66
-0.42

During the past 13 years, the highest Beneish M-Score of Teck Resources Ltd was -0.42. The lowest was -3.66. And the median was -2.63.


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 * 0.9877+0.528 * 1.4614+0.404 * 0.722+0.892 * 0.8375+0.115 * 0.9835
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9361+4.679 * -0.0498-0.327 * 1.0493
=-2.75

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $934 Mil.
Revenue was 2043.41113432 + 1855.03231764 + 1875.78757876 + 2233.08270677 = $8,007 Mil.
Gross Profit was 374.171283262 + 272.391505078 + 364.536453645 + 513.157894737 = $1,524 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 $105 Mil.
Total Current Liabilities was $1,450 Mil.
Long-Term Debt was $7,310 Mil.
Net Income was 76.2873490146 + 73.8688827331 + 62.1062106211 + 218.045112782 = $430 Mil.
Non Operating Income was -34.5109436019 + -8.31024930748 + -12.601260126 + 14.0977443609 = $-41 Mil.
Cash Flow from Operations was 503.133230406 + 402.585410896 + 490.549054905 + 722.744360902 = $2,119 Mil.
Accounts Receivable was $1,129 Mil.
Revenue was 2441.00580271 + 2087.29388943 + 2275.390625 + 2757.57575758 = $9,561 Mil.
Gross Profit was 577.369439072 + 564.500484966 + 684.5703125 + 833.333333333 = $2,660 Mil.
Total Current Assets was $5,048 Mil.
Total Assets was $33,771 Mil.
Property, Plant and Equipment(Net PPE) was $24,990 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,150 Mil.
Selling, General & Admin. Expense(SGA) was $134 Mil.
Total Current Liabilities was $1,338 Mil.
Long-Term Debt was $7,179 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)
=(933.611842703 / 8007.31373748) / (1128.62669246 / 9561.26607471)
=0.11659489 / 0.11804155
=0.9877

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)
=(272.391505078 / 9561.26607471) / (374.171283262 / 8007.31373748)
=0.27818215 / 0.19035811
=1.4614

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 - (4340.2052493 + 26119.3352102) / 33100.5358278) / (1 - (5048.35589942 + 24990.3288201) / 33770.7930368)
=0.07978709 / 0.1105129
=0.722

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
=8007.31373748 / 9561.26607471
=0.8375

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))
=(1149.57235475 / (1149.57235475 + 24990.3288201)) / (1222.60175032 / (1222.60175032 + 26119.3352102))
=0.04397769 / 0.04471526
=0.9835

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)
=(104.71897963 / 8007.31373748) / (133.578194597 / 9561.26607471)
=0.01307792 / 0.01397076
=0.9361

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)
=((7309.96276451 + 1450.367814) / 33100.5358278) / ((7178.91682785 + 1338.49129594) / 33770.7930368)
=0.26465827 / 0.25221226
=1.0493

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
=(430.307555151 - -41.3247086744 - 2119.01205711) / 33100.5358278
=-0.0498

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 -2.75 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 0.7511.13270.91990.84123.0840.38281.0640.92291.15181.057
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 1.65721.35111.49261.12120.84821.351.25671.22890.92910.844
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 -2.74-2.62-2.58-1.40-1.10-3.12-2.36-2.57-2.51-2.80

Teck Resources Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.96881.34540.89280.75220.7670.69491.02390.94821.1160.9877
GMI 0.99271.21.25861.34991.34261.27441.31561.36521.47151.4614
AQI 0.98010.99770.96590.90110.95121.05530.69220.76840.76150.722
SGI 0.81660.6711.19871.14691.14941.25560.87120.85640.86810.8375
DEPI 0.98771.06381.03390.90440.90490.83470.86680.92440.94410.9835
SGAI 0.45190.77351.55511.55411.34390.83860.86360.84620.87610.9361
LVGI 1.19250.99670.99621.02261.04220.97311.06021.05480.99911.0493
TATA -0.0774-0.0629-0.0388-0.0467-0.0442-0.0463-0.0522-0.0541-0.0482-0.0498
M-score -3.02-2.60-2.55-2.76-2.69-2.56-2.79-2.81-2.55-2.75
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK