Kinross Gold (FRA:KIN2) Beneish M-Score : -2.98 (As of Dec. 14, 2024)

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What is Kinross Gold 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.

Good Sign:

Beneish M-Score -2.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:KIN2' s Beneish M-Score Range Over the Past 10 Years
Min: -4.49 Med: -3.01 Max: -0.48
Current: -2.98

During the past 13 years, the highest Beneish M-Score of Kinross Gold was -0.48. The lowest was -4.49. And the median was -3.01.

Kinross Gold Beneish M-Score Historical Data

The historical data trend for Kinross Gold'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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Kinross Gold Beneish M-Score Chart

Kinross Gold Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.16

-0.48

-3.13

-3.38

Kinross Gold 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															-3.18	-3.38	-3.65	-3.08	-2.98

Competitive Comparison of Kinross Gold's Beneish M-Score

For the Gold subindustry, Kinross Gold'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.

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

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

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

Kinross Gold 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 Kinross Gold 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 * 1.061

0.528 * 0.6208

0.404 * 1.0348

0.892 * 1.1315

0.115 * 0.861

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9403

4.679 * -0.128904

0.327 * 0.789

-3.03

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €114 Mil.
Revenue was 1290.232 + 1132.916 + 994.98 + 1023.097 = €4,441 Mil.
Gross Profit was 581.686 + 360.08 + 274.068 + 232.093 = €1,448 Mil.
Total Current Assets was €1,829 Mil.
Total Assets was €9,693 Mil.
Property, Plant and Equipment(Net PPE) was €7,183 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,040 Mil.
Selling, General, & Admin. Expense(SGA) was €111 Mil.
Total Current Liabilities was €1,138 Mil.
Long-Term Debt & Capital Lease Obligation was €1,126 Mil.
Net Income was 320.125 + 195.926 + 98.44 + 59.972 = €674 Mil.
Non Operating Income was -5.406 + 5.295 + 0.092 + -19.257 = €-19 Mil.
Cash Flow from Operations was 660.884 + 561.116 + 344.448 + 376.795 = €1,943 Mil.

Total Receivables was €95 Mil.
Revenue was 1032.949 + 1008.193 + 867.966 + 1015.933 = €3,925 Mil.
Gross Profit was 297.872 + 327.757 + 218.089 + -49.277 = €794 Mil.
Total Current Assets was €1,854 Mil.
Total Assets was €9,926 Mil.
Property, Plant and Equipment(Net PPE) was €7,397 Mil.
Depreciation, Depletion and Amortization(DDA) was €904 Mil.
Selling, General, & Admin. Expense(SGA) was €104 Mil.
Total Current Liabilities was €686 Mil.
Long-Term Debt & Capital Lease Obligation was €2,252 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)
	=	(113.616 / 4441.225)	/	(94.637 / 3925.041)
	=	0.025582	/	0.024111
	=	1.061

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)
	=	(794.441 / 3925.041)	/	(1447.927 / 4441.225)
	=	0.202403	/	0.32602
	=	0.6208

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 - (1829.12 + 7182.592) / 9693.318)	/	(1 - (1853.855 + 7397.428) / 9925.735)
	=	0.070317	/	0.06795
	=	1.0348

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
	=	4441.225	/	3925.041
	=	1.1315

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))
	=	(903.857 / (903.857 + 7397.428))	/	(1039.867 / (1039.867 + 7182.592))
	=	0.108882	/	0.126467
	=	0.861

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)
	=	(110.824 / 4441.225)	/	(104.16 / 3925.041)
	=	0.024953	/	0.026537
	=	0.9403

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)
	=	((1126.25 + 1137.603) / 9693.318)	/	((2252.08 + 686.165) / 9925.735)
	=	0.233548	/	0.296023
	=	0.789

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
	=	(674.463 - -19.276	-	1943.243)	/	9693.318
	=	-0.128904

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.

Kinross Gold has a M-score of -3.03 suggests that the company is unlikely to be a manipulator.

Kinross Gold Beneish M-Score Related Terms

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Kinross Gold Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Kinross Gold Corp (FRA:KIN2) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

KGC:USA KGC:Mexico 0R2D:UK KIN2:Germany K:Canada KGC:Argentina

Address

25 York Street, 17th Floor, Toronto, ON, CAN, M5J 2V5

Website

https://www.kinross.com

Kinross Gold is a Canada-based gold producer, producing roughly 2.2 million gold equivalent ounces in 2023. The company had about a decade of gold reserves at the end of 2023. It operates mines in the Americas and West Africa after selling its low-cost Russian operations in 2022 in response to the invasion of Ukraine. The company has historically used acquisitions to fuel expansion into new regions and production growth. In 2022, Kinross purchased the Great Bear project in Canada, which, if developed, could produce an average of more than 500,000 ounces of gold per year for at least a decade.

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