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Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-2.68 (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 -2.73 suggests that the company is not a manipulator.

TCK' s 10-Year Beneish M-Score Range
Min: -3.61   Max: -0.49
Current: -2.68

-3.61
-0.49

During the past 13 years, the highest Beneish M-Score of Teck Resources Ltd was -0.49. The lowest was -3.61. And the median was -2.60.


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 * 1.4025+0.404 * 0.722+0.892 * 0.8375+0.115 * 0.9612
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6841+4.679 * -0.0481-0.327 * 1.0493
=-2.73

* 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 $87 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 + -42.2932330827 = $-98 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 + 726.262626263 = $2,553 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 $1,122 Mil.
Selling, General & Admin. Expense(SGA) was $152 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)
=0.26698377 / 0.19035811
=1.4025

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))
=(1122.29962748 / (1122.29962748 + 24990.3288201)) / (1222.60175032 / (1222.60175032 + 26119.3352102))
=0.04297919 / 0.04471526
=0.9612

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)
=(86.8618367727 / 8007.31373748) / (151.622448251 / 9561.26607471)
=0.01084781 / 0.01585799
=0.6841

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 - -97.7156861181 - 2119.01205711) / 33100.5358278
=-0.0481

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 -2.73 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 0.81241.13270.91990.84121.19620.98681.06640.92081.15181.057
GMI 0.3860.72160.77681.21351.14961.17690.93590.89871.42891.1464
AQI 0.91890.91410.54323.26590.54971.12891.08950.7820.9850.6789
SGI 1.53211.35111.49261.12120.87991.30141.27251.21360.92910.844
DEPI 0.77831.01511.1171.57691.94360.52920.96491.08771.00840.8844
SGAI 0.84780.96580.7481.28090.7311.51411.14950.45031.0371.0457
LVGI 0.65761.81670.85680.74962.17840.67950.73181.13391.0091.047
TATA -0.0761-0.0519-0.057-0.0018-0.0291-0.0653-0.0597-0.0433-0.0325-0.0504
M-score -2.78-2.73-2.58-1.40-2.88-2.42-2.39-2.65-2.34-2.89

Teck Resources Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.73420.9821.19221.00051.03130.95981.02390.94821.1160.9877
GMI 1.05861.27661.42861.48971.39721.25781.14481.20241.34931.4025
AQI 0.98010.99770.9850.90110.95121.05530.67890.76840.76150.722
SGI 1.07770.91930.89760.86230.85480.90910.87120.85640.86810.8375
DEPI 0.99611.07951.04450.94110.94060.84950.85780.89310.9130.9612
SGAI 0.60290.94451.1111.06241.19451.07791.16761.16520.8450.6841
LVGI 1.19250.99671.0091.02261.04220.97311.0471.05480.99911.0493
TATA -0.0547-0.0396-0.0321-0.0431-0.044-0.0486-0.0519-0.0538-0.0471-0.0481
M-score -2.88-2.59-2.34-2.61-2.65-2.69-2.93-2.95-2.61-2.73
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