First Quantum Minerals (First Quantum Minerals) Beneish M-Score : -2.96 (As of May. 05, 2024)

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What is First Quantum Minerals 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 -2.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FQVLF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2 Med: -2.53 Max: -1.64
Current: -2.96

During the past 13 years, the highest Beneish M-Score of First Quantum Minerals was -1.64. The lowest was -3.20. And the median was -2.53.

First Quantum Minerals Beneish M-Score Historical Data

The historical data trend for First Quantum Minerals'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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First Quantum Minerals Beneish M-Score Chart

First Quantum Minerals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.60

-2.51

-2.99

-2.21

-2.94

First Quantum Minerals 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															-2.51	-1.64	-1.85	-2.94	-2.96

Competitive Comparison of First Quantum Minerals's Beneish M-Score

For the Copper subindustry, First Quantum Minerals'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.

First Quantum Minerals's Beneish M-Score Distribution in the Metals & Mining Industry

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

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

First Quantum Minerals 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 First Quantum Minerals 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 * 0.9324

0.528 * 1.1375

0.404 * 0.9537

0.892 * 0.8452

0.115 * 1.1623

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2091

4.679 * -0.070802

0.327 * 0.9035

-2.94

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $606 Mil.
Revenue was 1036 + 1218 + 2029 + 1651 = $5,934 Mil.
Gross Profit was 156 + 87 + 660 + 265 = $1,168 Mil.
Total Current Assets was $3,093 Mil.
Total Assets was $23,474 Mil.
Property, Plant and Equipment(Net PPE) was $18,661 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,007 Mil.
Selling, General, & Admin. Expense(SGA) was $140 Mil.
Total Current Liabilities was $1,152 Mil.
Long-Term Debt & Capital Lease Obligation was $5,742 Mil.
Net Income was -159 + -1447 + 325 + 93 = $-1,188 Mil.
Non Operating Income was -43 + -1017 + -30 + 25 = $-1,065 Mil.
Cash Flow from Operations was 411 + -185 + 594 + 719 = $1,539 Mil.

Total Receivables was $769 Mil.
Revenue was 1558 + 1832 + 1727 + 1904 = $7,021 Mil.
Gross Profit was 280 + 361 + 302 + 629 = $1,572 Mil.
Total Current Assets was $3,554 Mil.
Total Assets was $24,495 Mil.
Property, Plant and Equipment(Net PPE) was $19,059 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,206 Mil.
Selling, General, & Admin. Expense(SGA) was $137 Mil.
Total Current Liabilities was $1,662 Mil.
Long-Term Debt & Capital Lease Obligation was $6,300 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)
	=	(606 / 5934)	/	(769 / 7021)
	=	0.102123	/	0.109529
	=	0.9324

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)
	=	(1572 / 7021)	/	(1168 / 5934)
	=	0.2239	/	0.196832
	=	1.1375

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 - (3093 + 18661) / 23474)	/	(1 - (3554 + 19059) / 24495)
	=	0.073273	/	0.076832
	=	0.9537

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
	=	5934	/	7021
	=	0.8452

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))
	=	(1206 / (1206 + 19059))	/	(1007 / (1007 + 18661))
	=	0.059511	/	0.0512
	=	1.1623

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)
	=	(140 / 5934)	/	(137 / 7021)
	=	0.023593	/	0.019513
	=	1.2091

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)
	=	((5742 + 1152) / 23474)	/	((6300 + 1662) / 24495)
	=	0.293687	/	0.325046
	=	0.9035

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
	=	(-1188 - -1065	-	1539)	/	23474
	=	-0.070802

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.

First Quantum Minerals has a M-score of -2.94 suggests that the company is unlikely to be a manipulator.

First Quantum Minerals Beneish M-Score Related Terms

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First Quantum Minerals (First Quantum Minerals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » First Quantum Minerals Ltd (OTCPK:FQVLF) » Definitions » Beneish M-Score

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Traded in Other Exchanges

IZ1:Germany FM:Canada

Address

330 Bay Street, Suite 1101, Toronto, ON, CAN, M5H 2S8

Website

https://www.first-quantum.com

First Quantum Minerals Ltd is a diversified mining company. The company's principal activities include mineral exploration, mine engineering and construction, and development and mining operations. The firm produces copper in concentrate, copper anode, copper cathode, nickel, gold, zinc, silver, acid, and pyrite. It has operating mines located in Zambia, Panama, Turkey, Spain, Australia and Mauritania. The Company's reportable operating segments are Cobre Panama, Kansanshi, Trident and Ravensthorpe. Majority of the revenue is generated from Cobre Panama.