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Trimble Navigation Ltd (NAS:TRMB)
Beneish M-Score
-2.80 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Trimble Navigation Ltd has a M-score of -2.80 suggests that the company is not a manipulator.

TRMB' s 10-Year Beneish M-Score Range
Min: -4.97   Max: 2.57
Current: -2.8

-4.97
2.57

During the past 13 years, the highest Beneish M-Score of Trimble Navigation Ltd was 2.57. The lowest was -4.97. And the median was -2.52.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Trimble Navigation Ltd 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 * 0.8992+0.528 * 0.9547+0.404 * 0.9799+0.892 * 1.1027+0.115 * 1.0362
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1074+4.679 * -0.0659-0.327 * 0.8987
=-2.80

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $359 Mil.
Revenue was 584.796 + 642.199 + 604.721 + 599.218 = $2,431 Mil.
Gross Profit was 316.773 + 354.571 + 326.892 + 319.454 = $1,318 Mil.
Total Current Assets was $916 Mil.
Total Assets was $3,819 Mil.
Property, Plant and Equipment(Net PPE) was $154 Mil.
Depreciation, Depletion and Amortization(DDA) was $191 Mil.
Selling, General & Admin. Expense(SGA) was $671 Mil.
Total Current Liabilities was $624 Mil.
Long-Term Debt was $578 Mil.
Net Income was 11.832 + 77.834 + 68.624 + 59.997 = $218 Mil.
Non Operating Income was -0.959 + 4.798 + 16.447 + 3.08 = $23 Mil.
Cash Flow from Operations was 95.876 + 131.193 + 83.395 + 136.227 = $447 Mil.
Accounts Receivable was $362 Mil.
Revenue was 556.502 + 576.293 + 556.111 + 515.523 = $2,204 Mil.
Gross Profit was 295.053 + 302.401 + 286.914 + 256.464 = $1,141 Mil.
Total Current Assets was $828 Mil.
Total Assets was $3,635 Mil.
Property, Plant and Equipment(Net PPE) was $136 Mil.
Depreciation, Depletion and Amortization(DDA) was $184 Mil.
Selling, General & Admin. Expense(SGA) was $550 Mil.
Total Current Liabilities was $569 Mil.
Long-Term Debt was $704 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(358.504 / 2430.934) / (361.556 / 2204.429)
=0.14747583 / 0.16401345
=0.8992

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)
=(354.571 / 2204.429) / (316.773 / 2430.934)
=0.51751814 / 0.54205092
=0.9547

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (916.041 + 153.823) / 3819.374) / (1 - (828.493 + 136.155) / 3635.172)
=0.71988499 / 0.73463484
=0.9799

4. SGI = Sales Growth Index

Ratio of sales 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
=2430.934 / 2204.429
=1.1027

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(183.516 / (183.516 + 136.155)) / (191.071 / (191.071 + 153.823))
=0.57407772 / 0.5539992
=1.0362

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(671.181 / 2430.934) / (549.62 / 2204.429)
=0.27610005 / 0.24932534
=1.1074

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((577.719 + 624.268) / 3819.374) / ((703.862 + 569.037) / 3635.172)
=0.31470786 / 0.35016197
=0.8987

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
=(218.287 - 23.366 - 446.691) / 3819.374
=-0.0659

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Trimble Navigation Ltd has a M-score of -2.80 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Trimble Navigation Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.96991.01040.97711.07270.7831.16880.95870.97210.95530.9323
GMI 1.02030.96551.02570.9781.02681.00030.97870.98870.9840.9747
AQI 0.88420.97951.05261.25641.0070.95331.01591.1861.05270.9977
SGI 1.23651.15861.21321.30011.08750.84731.14891.27061.24091.1216
DEPI 1.16391.18870.85540.68910.92940.91241.0270.95271.03721.0641
SGAI 0.90090.97381.0141.01230.95661.18170.99851.00350.96570.9887
LVGI 0.74320.83320.93711.08641.13670.93131.01111.58911.12750.8587
TATA 0.0028-0.0145-0.0449-0.0508-0.0252-0.0764-0.0185-0.0412-0.0527-0.058
M-score -2.20-2.34-2.48-2.36-2.75-2.86-2.48-2.59-2.57-2.66

Trimble Navigation Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.94420.87220.95531.00790.97671.00160.93230.91660.95520.8992
GMI 0.98850.98410.9840.99280.99150.99340.97470.96350.95480.9547
AQI 1.24241.01581.05271.04981.01451.02680.99770.99050.9420.9799
SGI 1.30661.2791.24091.18841.14971.12481.12161.11591.11611.1027
DEPI 0.93520.94471.03721.06721.10891.10371.06411.0731.05381.0362
SGAI 0.98640.94270.96570.96910.96461.00170.98871.00251.01441.1074
LVGI 1.79410.96611.12751.11491.04191.0190.85870.80070.79940.8987
TATA -0.0479-0.0535-0.0527-0.0427-0.0546-0.0584-0.058-0.0675-0.0582-0.0659
M-score -2.65-2.59-2.57-2.51-2.62-2.63-2.66-2.72-2.67-2.80
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