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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 15.92 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for Mercer International's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Mercer International was 15.92. The lowest was -10.78. And the median was -2.42.
The historical data trend for Mercer International'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.
Mercer International Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Beneish M-Score | Get a 7-Day Free Trial | -2.57 | -2.50 | -2.36 | -2.54 | -10.78 |
Mercer International Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Beneish M-Score | Get a 7-Day Free Trial | -2.53 | -1.27 | 2.43 | -10.78 | 15.92 |
For the Paper & Paper Products subindustry, Mercer International'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.
For the Forest Products industry and Basic Materials sector, Mercer International's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Mercer International's Beneish M-Score falls into.
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 Mercer International 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 * 1.1656 | + | 0.528 * 36.5473 | + | 0.404 * 0.6157 | + | 0.892 * 0.9158 | + | 0.115 * 0.9748 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.123 | + | 4.679 * -0.046879 | - | 0.327 * 1.1426 | |||||||
= | 15.92 |
* 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.
This Year (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was $368 Mil. Revenue was 553.43 + 470.494 + 470.821 + 529.863 = $2,025 Mil. Gross Profit was 54.898 + 4.079 + 26.67 + -76.44 = $9 Mil. Total Current Assets was $1,127 Mil. Total Assets was $2,605 Mil. Property, Plant and Equipment(Net PPE) was $1,373 Mil. Depreciation, Depletion and Amortization(DDA) was $165 Mil. Selling, General, & Admin. Expense(SGA) was $121 Mil. Total Current Liabilities was $302 Mil. Long-Term Debt & Capital Lease Obligation was $1,622 Mil. Net Income was -16.703 + -87.216 + -25.956 + -98.306 = $-228 Mil. Non Operating Income was -18.706 + -45.244 + 3.317 + 3.138 = $-57 Mil. Cash Flow from Operations was -29.194 + -8.719 + -25.334 + 14.698 = $-49 Mil. |
Total Receivables was $345 Mil. Revenue was 522.666 + 583.056 + 532.814 + 572.326 = $2,211 Mil. Gross Profit was 13.83 + 83.019 + 132.982 + 137.651 = $367 Mil. Total Current Assets was $1,196 Mil. Total Assets was $2,740 Mil. Property, Plant and Equipment(Net PPE) was $1,364 Mil. Depreciation, Depletion and Amortization(DDA) was $160 Mil. Selling, General, & Admin. Expense(SGA) was $118 Mil. Total Current Liabilities was $383 Mil. Long-Term Debt & Capital Lease Obligation was $1,388 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) |
= | (368.466 / 2024.608) | / | (345.193 / 2210.862) | |
= | 0.181994 | / | 0.156135 | |
= | 1.1656 |
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) | |
= | (367.482 / 2210.862) | / | (9.207 / 2024.608) | |
= | 0.166217 | / | 0.004548 | |
= | 36.5473 |
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 - (1126.902 + 1372.598) / 2605.355) | / | (1 - (1195.843 + 1363.793) / 2740.475) | |
= | 0.04063 | / | 0.065988 | |
= | 0.6157 |
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 | |
= | 2024.608 | / | 2210.862 | |
= | 0.9158 |
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)) |
= | (159.628 / (159.628 + 1363.793)) | / | (165.315 / (165.315 + 1372.598)) | |
= | 0.104783 | / | 0.107493 | |
= | 0.9748 |
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) |
= | (120.929 / 2024.608) | / | (117.586 / 2210.862) | |
= | 0.05973 | / | 0.053186 | |
= | 1.123 |
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) |
= | ((1621.97 + 301.538) / 2605.355) | / | ((1388.032 + 382.678) / 2740.475) | |
= | 0.73829 | / | 0.646133 | |
= | 1.1426 |
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 | |
= | (-228.181 - -57.495 | - | -48.549) | / | 2605.355 | |
= | -0.046879 |
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.
Mercer International has a M-score of 15.92 signals that the company is likely to be a manipulator.
Thank you for viewing the detailed overview of Mercer International's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Janine North | director | SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Alice Laberge | director | SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Torbjoern Loeoef | director | SUITE 1120-700 WEST PENDER STREET, VANCOUVER A1 V6C1G8 |
Thomas Kevin Corrick | director | C/O BOISE CASCADE, L.L.C., 1111 W. JEFFERSON ST., STE 300, BOISE ID 83702-5389 |
Cynthia Margaret Alekson | officer: VP, Controller | SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Wolfgang Beck | officer: Senior VP,Global Product | SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Carsten Merforth | officer: COO, Wood Products | SUITE 1120 - 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Rainer Rettig | director | SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Keith Purchase | director | SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Peter R Kellogg | 10 percent owner | 48 WALL STREET, C/O IAT REINSURANCE CO LTD, NEW YORK NY 10005 |
Bueno Estrada Juan Carlos | officer: Chief Executive Officer & Pres | SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Guy Arguin | officer: Chief Human Resources Officer | SUITE 1120 - 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
Eric Xavier Heine | officer: VP Sales & Marketing NA & Asia | 650 WEST GEORGIA STREET, VANCOUVER A1 V6B 4N8 |
Wolfram Ridder | officer: VP of Business Development | AM EISENBUHL 7, SELBITZ 2M D-95152 |
Alan C. Wallace | director | SUITE 1120, 700 WEST PENDER STREET, VANCOUVER A1 V6C 1G8 |
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