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

TCK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.66   Max: -0.62
Current: -3.09

-3.66
-0.62

During the past 13 years, the highest Beneish M-Score of Teck Resources Ltd was -0.62. The lowest was -3.66. And the median was -2.66.


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 * 1.1185+0.528 * 1.3622+0.404 * 1.087+0.892 * 0.7997+0.115 * 1.0294
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8691+4.679 * -0.1244-0.327 * 1.082
=-3.08

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $795 Mil.
Revenue was 1349.46486738 + 1283.83487071 + 1556.91679428 + 1583.74792703 = $5,774 Mil.
Gross Profit was 164.417558554 + 117.193406926 + 204.915044119 + 255.540479421 = $742 Mil.
Total Current Assets was $3,108 Mil.
Total Assets was $26,300 Mil.
Property, Plant and Equipment(Net PPE) was $20,831 Mil.
Depreciation, Depletion and Amortization(DDA) was $977 Mil.
Selling, General & Admin. Expense(SGA) was $140 Mil.
Total Current Liabilities was $1,179 Mil.
Long-Term Debt was $6,933 Mil.
Net Income was 11.6333178222 + 71.0721306517 + -334.718879895 + -1617.66922961 = $-1,870 Mil.
Non Operating Income was -27.9199627734 + 43.8530167851 + -33.5448114927 + -48.9974370571 = $-67 Mil.
Cash Flow from Operations was 262.912982783 + 282.020263118 + 500.984467294 + 422.131765415 = $1,468 Mil.
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 + 375.987648715 = $1,264 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 $94 Mil.
Total Current Liabilities was $1,590 Mil.
Long-Term Debt was $6,998 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)
=(794.94338452 / 5773.9644594) / (888.799029519 / 7220.42428238)
=0.13767722 / 0.12309512
=1.1185

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)
=(1264.03585193 / 7220.42428238) / (742.06648902 / 5773.9644594)
=0.17506393 / 0.12851941
=1.3622

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 - (3107.64696758 + 20830.6188925) / 26299.829378) / (1 - (3545.49130611 + 24089.7695107) / 30123.7363526)
=0.08979387 / 0.08260846
=1.087

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
=5773.9644594 / 7220.42428238
=0.7997

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))
=(1164.93149333 / (1164.93149333 + 24089.7695107)) / (977.255683751 / (977.255683751 + 20830.6188925))
=0.04612731 / 0.04481206
=1.0294

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)
=(140.058322444 / 5773.9644594) / (93.7047261233 / 7220.42428238)
=0.02425687 / 0.01297773
=1.8691

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)
=((6933.45742206 + 1178.84287265) / 26299.829378) / ((6997.97816417 + 1589.9716943) / 30123.7363526)
=0.30845448 / 0.28508913
=1.082

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
=(-1869.68266103 - -66.6091945381 - 1468.04947861) / 26299.829378
=-0.1244

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 -3.08 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 0.91990.84123.0840.44130.92280.92291.15181.0570.91751.1206
GMI 0.77681.21351.3690.98820.9330.90161.24321.31761.44861.1527
AQI 0.54323.26590.54961.12920.93950.90690.96590.69221.13131.0957
SGI 1.49261.12120.84821.351.25671.22890.92910.8440.84560.8077
DEPI 1.1171.57692.1290.48311.00751.04140.99860.89330.95610.9152
SGAI 0.7481.28090.61771.79161.15510.38361.22011.21510.94650.9617
LVGI 0.85680.74962.17850.67870.73761.12640.99621.06021.04171.1547
TATA -0.03790.016-0.0481-0.0653-0.0355-0.0433-0.0399-0.064-0.049-0.1223
M-score -2.49-1.32-1.10-3.03-2.49-2.57-2.51-2.89-2.64-3.05

Teck Resources Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.94821.1160.98770.9071.11421.08470.90941.09991.04531.1185
GMI 1.3641.46761.45531.45221.35561.17711.13011.14821.25781.3622
AQI 0.76840.76150.7221.13131.02731.0271.14581.09571.08221.087
SGI 0.85640.86810.83750.85550.86360.85910.84430.82290.80990.7997
DEPI 0.92440.94410.98350.94460.94330.96880.86860.89790.98561.0294
SGAI 1.05471.22291.00060.90570.91710.71490.98751.08561.17331.8691
LVGI 1.05480.99911.04931.04171.09341.09131.21431.15471.08281.082
TATA -0.0677-0.0615-0.0632-0.0506-0.0479-0.0433-0.1111-0.1265-0.127-0.1244
M-score -2.91-2.67-2.82-2.64-2.54-2.61-3.18-3.10-3.09-3.08
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