Newmont (ASX:NEM) Beneish M-Score : 4.18 (As of Dec. 11, 2024)

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What is Newmont Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 4.18 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Newmont's Beneish M-Score or its related term are showing as below:

ASX:NEM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52 Med: -2.77 Max: 4.18
Current: 4.18

During the past 13 years, the highest Beneish M-Score of Newmont was 4.18. The lowest was -3.52. And the median was -2.77.

Newmont Beneish M-Score Historical Data

The historical data trend for Newmont's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Newmont Beneish M-Score Chart

Newmont Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.14

-2.69

-2.94

-1.63

-1.93

Newmont Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-3.52	-1.93	-1.77	0.09	4.18

Competitive Comparison of Newmont's Beneish M-Score

For the Gold subindustry, Newmont's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Newmont's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Newmont's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Newmont's Beneish M-Score falls into.

Newmont Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Newmont for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 7.7381

0.528 * 0.7986

0.404 * 0.8769

0.892 * 1.5318

0.115 * 1.0187

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9206

4.679 * -0.039565

0.327 * 1.1859

3.81

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was A$1,439 Mil.
Revenue was 6801.585 + 6629.412 + 6135.075 + 5911.758 = A$25,478 Mil.
Gross Profit was 2457.728 + 2475.864 + 1926.075 + 1453.662 = A$8,313 Mil.
Total Current Assets was A$18,576 Mil.
Total Assets was A$82,970 Mil.
Property, Plant and Equipment(Net PPE) was A$49,770 Mil.
Depreciation, Depletion and Amortization(DDA) was A$3,853 Mil.
Selling, General, & Admin. Expense(SGA) was A$597 Mil.
Total Current Liabilities was A$9,465 Mil.
Long-Term Debt & Capital Lease Obligation was A$13,274 Mil.
Net Income was 1361.794 + 1284.618 + 259.25 + -4718.052 = A$-1,812 Mil.
Non Operating Income was -280.63 + -365.958 + -725.9 + -3845.556 = A$-5,218 Mil.
Cash Flow from Operations was 2434.096 + 2150.568 + 1183.4 + 920.304 = A$6,688 Mil.

Total Receivables was A$121 Mil.
Revenue was 3879.108 + 3997.67 + 4013.142 + 4742.4 = A$16,632 Mil.
Gross Profit was 998.952 + 974.46 + 1102.528 + 1258.218 = A$4,334 Mil.
Total Current Assets was A$9,266 Mil.
Total Assets was A$59,259 Mil.
Property, Plant and Equipment(Net PPE) was A$38,082 Mil.
Depreciation, Depletion and Amortization(DDA) was A$3,008 Mil.
Selling, General, & Admin. Expense(SGA) was A$423 Mil.
Total Current Liabilities was A$4,369 Mil.
Long-Term Debt & Capital Lease Obligation was A$9,325 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(1438.598 / 25477.83)	/	(121.368 / 16632.32)
	=	0.056465	/	0.007297
	=	7.7381

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)
	=	(4334.158 / 16632.32)	/	(8313.329 / 25477.83)
	=	0.260586	/	0.326297
	=	0.7986

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (18576.229 + 49770.469) / 82970.475)	/	(1 - (9265.98 + 38081.544) / 59258.704)
	=	0.176253	/	0.201003
	=	0.8769

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	25477.83	/	16632.32
	=	1.5318

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(3007.82 / (3007.82 + 38081.544))	/	(3853.363 / (3853.363 + 49770.469))
	=	0.073202	/	0.071859
	=	1.0187

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(597.022 / 25477.83)	/	(423.374 / 16632.32)
	=	0.023433	/	0.025455
	=	0.9206

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((13273.799 + 9464.616) / 82970.475)	/	((9325.108 + 4369.248) / 59258.704)
	=	0.274054	/	0.231094
	=	1.1859

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
	=	(-1812.39 - -5218.044	-	6688.368)	/	82970.475
	=	-0.039565

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Newmont has a M-score of 3.81 signals that the company is likely to be a manipulator.

Newmont Beneish M-Score Related Terms

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Newmont Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Newmont Corp (ASX:NEM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NEMCL:USA NEM:USA NEM:Peru NEM:Mexico 1NEM:Italy 0R28:UK NMM0:Germany NMM0:Germany NMM0:Germany NMM:Germany NMM:Germany NMM:Germany NMM:Germany NEM:Chile NGT:Canada N1EM34:Brazil NEWM:Austria NEM:Argentina

Address

6900 E Layton Avenue, Suite 700, Denver, CO, USA, 80237

Website

https://www.newmont.com

Newmont is the world's largest gold miner. It bought Goldcorp in 2019, combined its Nevada mines in a joint venture with competitor Barrick later that year, and also purchased competitor Newcrest in November 2023. Its portfolio includes 17 wholly or majority owned mines and interests in two joint ventures in the Americas, Africa, Australia and Papua New Guinea. The company is expected to produce roughly 5.5 million ounces of gold in 2024 from its core mines and 6.8 million in total. It is likely to sell a number of its higher cost, smaller mines accounting for 20% of forecast sales in 2024. Newmont also produces material amounts of copper, silver, zinc, and lead as byproducts. It had about two decades of gold reserves along with significant byproduct reserves at the end of December 2023.