Kirkland Lake Gold (Kirkland Lake Gold) Beneish M-Score : -2.54 (As of May. 11, 2024)

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What is Kirkland Lake 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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KL' s Beneish M-Score Range Over the Past 10 Years
Min: -8.59 Med: -2.43 Max: 14.11
Current: -2.54

During the past 13 years, the highest Beneish M-Score of Kirkland Lake Gold was 14.11. The lowest was -8.59. And the median was -2.43.

Kirkland Lake Gold Beneish M-Score Historical Data

The historical data trend for Kirkland Lake 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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Kirkland Lake Gold Beneish M-Score Chart

Kirkland Lake Gold Annual Data

Trend

Apr11

Apr12

Apr13

Apr14

Apr15

Dec16

Dec17

Dec18

Dec19

Dec20

Beneish M-Score

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-2.23

0.23

-2.54

-3.79

-2.72

Kirkland Lake Gold Quarterly Data
	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21
Beneish M-Score	Get a 7-Day Free Trial															-2.56	-2.72	-2.94	-2.95	-2.54

Competitive Comparison of Kirkland Lake Gold's Beneish M-Score

For the Gold subindustry, Kirkland Lake 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.

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

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

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

Kirkland Lake 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 Kirkland Lake 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 * 2.0585

0.528 * 1.0823

0.404 * 0.6095

0.892 * 1.1798

0.115 * 0.7818

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7677

4.679 * -0.04838

0.327 * 0.7052

-1.58

This Year (Sep21) TTM:

Last Year (Sep20) TTM:

Total Receivables was $63 Mil.
Revenue was 666.978 + 662.736 + 551.846 + 691.548 = $2,573 Mil.
Gross Profit was 370.945 + 369.293 + 259.271 + 398.855 = $1,398 Mil.
Total Current Assets was $1,094 Mil.
Total Assets was $7,252 Mil.
Property, Plant and Equipment(Net PPE) was $5,957 Mil.
Depreciation, Depletion and Amortization(DDA) was $445 Mil.
Selling, General, & Admin. Expense(SGA) was $58 Mil.
Total Current Liabilities was $360 Mil.
Long-Term Debt & Capital Lease Obligation was $17 Mil.
Net Income was 254.946 + 244.167 + 161.193 + 232.573 = $893 Mil.
Non Operating Income was 1.537 + 2.016 + -1.424 + -41.077 = $-39 Mil.
Cash Flow from Operations was 322.993 + 330.571 + 208.174 + 420.932 = $1,283 Mil.

Total Receivables was $26 Mil.
Revenue was 632.843 + 580.975 + 554.738 + 412.379 = $2,181 Mil.
Gross Profit was 388.632 + 337.716 + 279.058 + 277.343 = $1,283 Mil.
Total Current Assets was $1,050 Mil.
Total Assets was $6,839 Mil.
Property, Plant and Equipment(Net PPE) was $5,477 Mil.
Depreciation, Depletion and Amortization(DDA) was $315 Mil.
Selling, General, & Admin. Expense(SGA) was $64 Mil.
Total Current Liabilities was $488 Mil.
Long-Term Debt & Capital Lease Obligation was $16 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)
	=	(63.335 / 2573.108)	/	(26.077 / 2180.935)
	=	0.024614	/	0.011957
	=	2.0585

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)
	=	(1282.749 / 2180.935)	/	(1398.364 / 2573.108)
	=	0.588165	/	0.543453
	=	1.0823

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 - (1093.638 + 5957.19) / 7251.762)	/	(1 - (1050.41 + 5477.422) / 6838.732)
	=	0.027708	/	0.045462
	=	0.6095

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
	=	2573.108	/	2180.935
	=	1.1798

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))
	=	(314.997 / (314.997 + 5477.422))	/	(445.324 / (445.324 + 5957.19))
	=	0.054381	/	0.069555
	=	0.7818

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)
	=	(57.684 / 2573.108)	/	(63.684 / 2180.935)
	=	0.022418	/	0.0292
	=	0.7677

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)
	=	((17.081 + 359.894) / 7251.762)	/	((16.426 + 487.672) / 6838.732)
	=	0.051984	/	0.073712
	=	0.7052

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
	=	(892.879 - -38.948	-	1282.67)	/	7251.762
	=	-0.04838

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.

Kirkland Lake Gold has a M-score of -1.58 signals that the company is likely to be a manipulator.

Kirkland Lake Gold Beneish M-Score Related Terms

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Kirkland Lake Gold (Kirkland Lake Gold) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Kirkland Lake Gold Ltd (NYSE:KL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

200 Bay Street, Suite 2800, Toronto, ON, CAN, M5J 2J1

Website

https://www.klgold.com

Kirkland Lake Gold Ltd is a Canada-based gold mining, development, and exploration company with a diversified portfolio of exploration projects. The production profile of the company includes the Macassa mine complex located in northeastern Ontario and the Fosterville gold mine located in the State of Victoria, Australia. Also, the company owns the Holt mine and the Detour mine. The company's mines and material mineral projects are located in Canada and Australia.