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Newmont Beneish M-Score

: -2.61 (As of Today)
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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.

Good Sign:

Beneish M-Score -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NEM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.77   Med: -2.69   Max: 2.46
Current: -2.61

During the past 13 years, the highest Beneish M-Score of Newmont was 2.46. The lowest was -4.77. And the median was -2.69.


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.

* Premium members only.

Newmont Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.31 -2.67 -2.14 -2.69 -2.94

Newmont Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.52 -2.68 -2.94 -2.17 -2.61

Competitive Comparison

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 Beneish M-Score Distribution

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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.078+0.528 * 1.2412+0.404 * 1.0155+0.892 * 0.9902+0.115 * 0.9886
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0331+4.679 * -0.0657-0.327 * 1.0367
=-2.61

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $364 Mil.
Revenue was 3058 + 3023 + 3390 + 2895 = $12,366 Mil.
Gross Profit was 791 + 1041 + 1211 + 958 = $4,001 Mil.
Total Current Assets was $6,907 Mil.
Total Assets was $39,690 Mil.
Property, Plant and Equipment(Net PPE) was $24,131 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,315 Mil.
Selling, General, & Admin. Expense(SGA) was $267 Mil.
Total Current Liabilities was $2,451 Mil.
Long-Term Debt & Capital Lease Obligation was $6,075 Mil.
Net Income was 387 + 448 + -46 + 3 = $792 Mil.
Non Operating Income was -97 + -144 + 145 + -685 = $-781 Mil.
Cash Flow from Operations was 1043 + 694 + 1299 + 1144 = $4,180 Mil.
Total Receivables was $341 Mil.
Revenue was 3065 + 2872 + 3381 + 3170 = $12,488 Mil.
Gross Profit was 1223 + 1072 + 1411 + 1309 = $5,015 Mil.
Total Current Assets was $7,445 Mil.
Total Assets was $40,677 Mil.
Property, Plant and Equipment(Net PPE) was $24,500 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,321 Mil.
Selling, General, & Admin. Expense(SGA) was $261 Mil.
Total Current Liabilities was $2,787 Mil.
Long-Term Debt & Capital Lease Obligation was $5,642 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)
=(364 / 12366) / (341 / 12488)
=0.02943555 / 0.02730621
=1.078

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)
=(5015 / 12488) / (4001 / 12366)
=0.40158552 / 0.32354844
=1.2412

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 - (6907 + 24131) / 39690) / (1 - (7445 + 24500) / 40677)
=0.21798942 / 0.21466677
=1.0155

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
=12366 / 12488
=0.9902

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))
=(2321 / (2321 + 24500)) / (2315 / (2315 + 24131))
=0.08653667 / 0.08753687
=0.9886

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)
=(267 / 12366) / (261 / 12488)
=0.02159146 / 0.02090006
=1.0331

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)
=((6075 + 2451) / 39690) / ((5642 + 2787) / 40677)
=0.21481481 / 0.20721784
=1.0367

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
=(792 - -781 - 4180) / 39690
=-0.0657

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 -2.61 suggests that the company is unlikely to be a manipulator.


Newmont Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Newmont's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Newmont Business Description

Newmont logo
Address
6900 E Layton Avenue, Suite 700, Denver, CO, USA, 80237
Newmont Corp is primarily a gold producer with operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. It is also engaged in the production of copper, silver, lead and zinc. The company's operations are organized in five geographic regions: North America, South America, Australia, Africa and Nevada.
Executives
Clark Maura J director C/O ELIZABETH ARDEN, INC. 2400 SW 145 AVENUE MIRAMAR FL 33027
Madero Garza Jose Manuel director C/O CONSTELLATION BRANDS, INC. 207 HIGH POINT DRIVE, BUILDING 100 VICTOR NY 14564
Nelson Jane director 6363 SOUTH FIDDLER'S GREEN CIRCLE GREENWOOD VILLAGE CO 80111
Brook Bruce R director 6363 SOUTH FIDDLER'S GREEN CIRCLE GREENWOOD VILLAGE CO 80111
Awuah Patrick director 7900 E LAYTON AVENUE SUITE 700 DENVER CO 80237
Medori Rene director 6363 S FIDDLERS GREEN CIRCLE GREENWOOD VILLAGE CO 80111
Quintana Julio M director 3993 W. SAM HOUSTON PARKWAY N. STE. 100 HOUSTON TX 77043
Boyce Gregory H director 701 MARKET STREET ST. LOUIS MO 63101
Story Susan N director ONE ENERGY PLACE PENSCOLA FL 32520
Tabolt Brian officer: VP, Controller and CAO P.O. BOX 4030 NH353 GOLDEN CO 80401
Lipson Nancy officer: EVP & General Counsel 6363 S FIDDLERS GREEN CIRCLE GREENWOOD VILLAGE CO 80111
Cmil Jennifer officer: EVP, Human Resources 6363 S FIDDLERS GREEN CIRCLE GREENWOOD VILLAGE CO 80111
Gehring Dean officer: EVP & CTO 6363 S FIDDLERS GREEN CIRCLE GREENWOOD VILLAGE CO 80111
Atkinson Robert D officer: EVP & COO 6363 S FIDDLERS GREEN CIRCLE GREENWOOD VILLAGE CO 80111
Buese Nancy officer: EVP & CFO 1515 ARAPAHOE STREET DENVER CO 80202-2126

Newmont Headlines

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