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Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-2.49 (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 -2.62 suggests that the company is not a manipulator.

TCK' s 10-Year Beneish M-Score Range
Min: -3.66   Max: -0.42
Current: -2.49

-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 -2.59.


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 * 1.0847+0.528 * 1.1788+0.404 * 1.027+0.892 * 0.8591+0.115 * 0.9688
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7833+4.679 * -0.0432-0.327 * 1.0913
=-2.62

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $889 Mil.
Revenue was 1616.65992721 + 1604.05769536 + 1956.29552549 + 2043.41113432 = $7,220 Mil.
Gross Profit was 251.51637687 + 275.796481217 + 360.735345127 + 374.171283262 = $1,262 Mil.
Total Current Assets was $3,545 Mil.
Total Assets was $30,124 Mil.
Property, Plant and Equipment(Net PPE) was $24,090 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,165 Mil.
Selling, General & Admin. Expense(SGA) was $89 Mil.
Total Current Liabilities was $1,590 Mil.
Long-Term Debt was $6,998 Mil.
Net Income was 50.9502628387 + 53.8912664448 + 111.86264308 + 76.2873490146 = $293 Mil.
Non Operating Income was -21.0270926001 + -35.6633380884 + -39.8890045092 + -19.98001998 = $-117 Mil.
Cash Flow from Operations was 268.499797816 + 294.816928198 + 644.294138051 + 503.133230406 = $1,711 Mil.
Accounts Receivable was $954 Mil.
Revenue was 1855.03231764 + 1875.78757876 + 2233.08270677 + 2441.00580271 = $8,405 Mil.
Gross Profit was 275.161588181 + 366.336633663 + 513.157894737 + 577.369439072 = $1,732 Mil.
Total Current Assets was $4,559 Mil.
Total Assets was $33,484 Mil.
Property, Plant and Equipment(Net PPE) was $26,232 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,227 Mil.
Selling, General & Admin. Expense(SGA) was $132 Mil.
Total Current Liabilities was $1,668 Mil.
Long-Term Debt was $7,079 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)
=(888.799029519 / 7220.42428238) / (953.831948292 / 8404.90840587)
=0.12309512 / 0.11348511
=1.0847

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)
=(275.796481217 / 8404.90840587) / (251.51637687 / 7220.42428238)
=0.2060731 / 0.17481237
=1.1788

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 - (3545.49130611 + 24089.7695107) / 30123.7363526) / (1 - (4558.63342567 + 26231.7636196) / 33483.8411819)
=0.08260846 / 0.08044012
=1.027

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
=7220.42428238 / 8404.90840587
=0.8591

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))
=(1227.04798107 / (1227.04798107 + 26231.7636196)) / (1164.93149333 / (1164.93149333 + 24089.7695107))
=0.04468686 / 0.04612731
=0.9688

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)
=(88.7479952182 / 7220.42428238) / (131.890118387 / 8404.90840587)
=0.01229124 / 0.01569204
=0.7833

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)
=((6997.97816417 + 1589.9716943) / 30123.7363526) / ((7079.40904894 + 1667.5900277) / 33483.8411819)
=0.28508913 / 0.26123046
=1.0913

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
=(292.991521378 - -116.559455178 - 1710.74409447) / 30123.7363526
=-0.0432

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 -2.62 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 1.13270.91990.84123.0840.38281.0640.92291.15181.0570.9175
GMI 0.72160.77681.21351.3690.98820.9330.90161.24321.31761.4552
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 -2.62-2.58-1.40-1.10-3.12-2.36-2.57-2.51-2.80-2.65

Teck Resources Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.00051.03130.95981.02390.94821.1160.98770.9071.11421.0847
GMI 1.33191.34411.32731.31561.3641.46761.4571.45411.35751.1788
AQI 0.90110.95121.05530.69220.76840.76150.7221.13131.02731.027
SGI 0.86230.85480.90910.87120.85640.86810.83750.85550.86360.8591
DEPI 0.90440.90490.83470.86680.92440.94410.98350.94460.94330.9688
SGAI 1.07360.94510.7730.86580.90411.05720.87611.00941.02360.7833
LVGI 1.02261.04220.97311.06021.05480.99911.04931.04171.09341.0913
TATA -0.0465-0.0439-0.0459-0.0505-0.0521-0.0463-0.0484-0.0507-0.0479-0.0432
M-score -2.72-2.64-2.59-2.78-2.81-2.57-2.73-2.66-2.56-2.62
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