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Trimble Navigation Ltd (NAS:TRMB)
Beneish M-Score
-2.70 (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 -2.70 suggests that the company is not a manipulator.

TRMB' s 10-Year Beneish M-Score Range
Min: -4.97   Max: 2.43
Current: -2.7

-4.97
2.43

During the past 13 years, the highest Beneish M-Score of Trimble Navigation Ltd was 2.43. The lowest was -4.97. And the median was -2.48.


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 * 0.9322+0.528 * 0.9635+0.404 * 0.9905+0.892 * 1.1159+0.115 * 1.073
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0025+4.679 * -0.0675-0.327 * 0.8007
=-2.70

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $419 Mil.
Revenue was 604.721 + 599.218 + 556.502 + 576.293 = $2,337 Mil.
Gross Profit was 326.892 + 319.454 + 295.053 + 302.401 = $1,244 Mil.
Total Current Assets was $931 Mil.
Total Assets was $3,778 Mil.
Property, Plant and Equipment(Net PPE) was $150 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General & Admin. Expense(SGA) was $584 Mil.
Total Current Liabilities was $563 Mil.
Long-Term Debt was $613 Mil.
Net Income was 68.624 + 59.997 + 54.469 + 54.581 = $238 Mil.
Non Operating Income was 16.447 + 3.08 + 4.605 + 8.041 = $32 Mil.
Cash Flow from Operations was 83.395 + 136.227 + 106.365 + 134.655 = $461 Mil.
Accounts Receivable was $403 Mil.
Revenue was 556.111 + 515.523 + 504.763 + 517.56 = $2,094 Mil.
Gross Profit was 286.914 + 256.464 + 262.868 + 267.696 = $1,074 Mil.
Total Current Assets was $890 Mil.
Total Assets was $3,566 Mil.
Property, Plant and Equipment(Net PPE) was $106 Mil.
Depreciation, Depletion and Amortization(DDA) was $161 Mil.
Selling, General & Admin. Expense(SGA) was $522 Mil.
Total Current Liabilities was $556 Mil.
Long-Term Debt was $829 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)
=(419.245 / 2336.734) / (403.018 / 2093.957)
=0.17941494 / 0.19246718
=0.9322

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)
=(319.454 / 2093.957) / (326.892 / 2336.734)
=0.51287682 / 0.53228138
=0.9635

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 - (930.871 + 149.609) / 3777.583) / (1 - (889.95 + 105.603) / 3565.721)
=0.71397584 / 0.72079896
=0.9905

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
=2336.734 / 2093.957
=1.1159

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))
=(160.564 / (160.564 + 105.603)) / (192.141 / (192.141 + 149.609))
=0.60324533 / 0.56222677
=1.073

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)
=(584.176 / 2336.734) / (522.178 / 2093.957)
=0.24999679 / 0.24937379
=1.0025

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)
=((612.598 + 562.972) / 3777.583) / ((829.322 + 556.454) / 3565.721)
=0.31119634 / 0.38863837
=0.8007

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
=(237.671 - 32.173 - 460.642) / 3777.583
=-0.0675

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 -2.70 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 0.93311.02120.99541.05080.81561.13950.99130.9110.97290.9446
GMI 1.02030.96551.02570.9781.02681.00030.97870.98870.9840.9747
AQI 0.90680.97951.04721.26291.0070.95331.01591.1861.05270.9977
SGI 1.23651.15861.21321.30011.08750.84731.14891.27061.24091.1216
DEPI 1.16391.18870.85540.68910.93050.91131.0270.95271.03721.0641
SGAI 0.90090.97381.0141.01230.95661.18170.99851.00350.96570.9887
LVGI 0.72180.83320.95821.06251.13670.93131.01111.58911.12750.8587
TATA 0.0028-0.0119-0.0424-0.0508-0.0253-0.0764-0.0185-0.0412-0.0527-0.058
M-score -2.22-2.32-2.47-2.37-2.72-2.88-2.45-2.64-2.56-2.65

Trimble Navigation Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.9110.86950.89050.83410.97291.03150.9880.99730.94460.9322
GMI 0.98870.97970.98850.98410.9840.99280.99150.99340.97470.9635
AQI 1.1861.19161.24241.01581.05271.04981.01451.02680.99770.9905
SGI 1.27061.29641.30661.2791.24091.18841.14971.12481.12161.1159
DEPI 0.95270.93580.93520.94471.03721.06721.10891.10371.06411.073
SGAI 1.00350.99970.98640.94270.96570.96910.96461.00170.98871.0025
LVGI 1.58911.6521.79410.96611.12751.11491.04191.0190.85870.8007
TATA -0.0412-0.0485-0.0479-0.0535-0.0527-0.0427-0.0546-0.0584-0.058-0.0675
M-score -2.64-2.72-2.70-2.62-2.56-2.49-2.61-2.63-2.65-2.70
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