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Teck Resources Ltd (NYSE:TCK)
Beneish M-Score
-2.43 (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 -2.57 suggests that the company is not a manipulator.

TCK' s 10-Year Beneish M-Score Range
Min: -3.66   Max: -0.42
Current: -2.43

-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 -2.61.


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 * 1.1142+0.528 * 1.3605+0.404 * 1.0273+0.892 * 0.8636+0.115 * 0.9433
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0602+4.679 * -0.0478-0.327 * 1.0934
=-2.57

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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 + 374.171283262 + 272.391505078 = $1,283 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 $110 Mil.
Total Current Liabilities was $1,562 Mil.
Long-Term Debt was $6,930 Mil.
Net Income was 53.8912664448 + 111.86264308 + 76.2873490146 + 73.8688827331 = $316 Mil.
Non Operating Income was -35.6633380884 + -26.8817204301 + -34.5109436019 + -8.31024930748 = $-105 Mil.
Cash Flow from Operations was 294.816928198 + 644.294138051 + 503.133230406 + 402.585410896 = $1,845 Mil.
Accounts Receivable was $893 Mil.
Revenue was 1875.78757876 + 2233.08270677 + 2441.00580271 + 2087.29388943 = $8,637 Mil.
Gross Profit was 366.336633663 + 513.157894737 + 577.369439072 + 564.500484966 = $2,021 Mil.
Total Current Assets was $4,635 Mil.
Total Assets was $32,746 Mil.
Property, Plant and Equipment(Net PPE) was $25,488 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,195 Mil.
Selling, General & Admin. Expense(SGA) was $120 Mil.
Total Current Liabilities was $1,374 Mil.
Long-Term Debt was $7,169 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)
=(859.090188619 / 7458.79667281) / (892.889288929 / 8637.16997766)
=0.11517812 / 0.10337753
=1.1142

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)
=(360.735345127 / 8637.16997766) / (275.796481217 / 7458.79667281)
=0.23403088 / 0.17202435
=1.3605

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 - (3615.46996354 + 23705.8170867) / 29771.7546362) / (1 - (4634.56345635 + 25487.8487849) / 32746.1746175)
=0.08230847 / 0.08012424
=1.0273

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
=7458.79667281 / 8637.16997766
=0.8636

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))
=(1195.2623298 / (1195.2623298 + 25487.8487849)) / (1181.83949214 / (1181.83949214 + 23705.8170867))
=0.04479471 / 0.04748697
=0.9433

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)
=(109.806559138 / 7458.79667281) / (119.929449847 / 8637.16997766)
=0.01472175 / 0.01388527
=1.0602

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)
=((6929.7828499 + 1562.05420827) / 29771.7546362) / ((7169.21692169 + 1373.53735374) / 32746.1746175)
=0.28523133 / 0.26087793
=1.0934

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
=(315.910141273 - -105.366251428 - 1844.82970755) / 29771.7546362
=-0.0478

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 -2.57 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.19221.00051.03130.95981.02390.94821.1160.98770.9071.1142
GMI 1.24321.33191.34411.32731.31561.3641.46991.45961.4571.3605
AQI 0.96610.90110.95121.05530.69220.76840.76150.7221.13131.0273
SGI 0.89760.86230.85480.90910.87120.85640.86810.83750.85550.8636
DEPI 1.03370.90440.90490.83470.86680.92440.94410.98350.94460.9433
SGAI 1.08481.09970.98350.70670.86360.85260.88310.94411.01261.0602
LVGI 0.99631.02261.04220.97311.06021.05480.99911.04931.04171.0934
TATA -0.0388-0.0467-0.0442-0.0463-0.0522-0.0535-0.0477-0.0493-0.0506-0.0478
M-score -2.47-2.72-2.65-2.58-2.79-2.81-2.55-2.74-2.66-2.57
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