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Trimble Navigation Ltd (NAS:TRMB)
Beneish M-Score
-2.90 (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 -2.90 suggests that the company is not a manipulator.

TRMB' s 10-Year Beneish M-Score Range
Min: -4.97   Max: 2.29
Current: -2.9

-4.97
2.29

During the past 13 years, the highest Beneish M-Score of Trimble Navigation Ltd was 2.29. 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 * 0.9706+0.528 * 1.0241+0.404 * 1.0473+0.892 * 0.9644+0.115 * 1.0048
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1081+4.679 * -0.0764-0.327 * 1.0627
=-2.90

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $356 Mil.
Revenue was 585.8 + 582.6 + 563.83 + 584.796 = $2,317 Mil.
Gross Profit was 303.9 + 307.2 + 292.608 + 316.773 = $1,220 Mil.
Total Current Assets was $885 Mil.
Total Assets was $3,780 Mil.
Property, Plant and Equipment(Net PPE) was $162 Mil.
Depreciation, Depletion and Amortization(DDA) was $197 Mil.
Selling, General & Admin. Expense(SGA) was $645 Mil.
Total Current Liabilities was $697 Mil.
Long-Term Debt was $515 Mil.
Net Income was 25.9 + 34.1 + 55.828 + 11.832 = $128 Mil.
Non Operating Income was 6.1 + 11.1 + 3.587 + -0.959 = $20 Mil.
Cash Flow from Operations was 96.8 + 107.2 + 96.619 + 95.864 = $396 Mil.
Accounts Receivable was $380 Mil.
Revenue was 642.2 + 604.7 + 599.218 + 556.502 = $2,403 Mil.
Gross Profit was 354.6 + 326.9 + 319.454 + 295.053 = $1,296 Mil.
Total Current Assets was $1,042 Mil.
Total Assets was $3,867 Mil.
Property, Plant and Equipment(Net PPE) was $156 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General & Admin. Expense(SGA) was $603 Mil.
Total Current Liabilities was $572 Mil.
Long-Term Debt was $595 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)
=(355.5 / 2317.026) / (379.811 / 2402.62)
=0.15342944 / 0.15808201
=0.9706

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)
=(307.2 / 2402.62) / (303.9 / 2317.026)
=0.53941406 / 0.52674463
=1.0241

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 - (885.1 + 161.7) / 3780.2) / (1 - (1041.704 + 155.575) / 3867.239)
=0.72308343 / 0.6904047
=1.0473

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
=2317.026 / 2402.62
=0.9644

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))
=(191.628 / (191.628 + 155.575)) / (197.041 / (197.041 + 161.7))
=0.55191919 / 0.54925698
=1.0048

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)
=(644.517 / 2317.026) / (603.122 / 2402.62)
=0.27816563 / 0.2510268
=1.1081

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)
=((515.4 + 696.6) / 3780.2) / ((595.157 + 571.592) / 3867.239)
=0.32061796 / 0.30170077
=1.0627

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
=(127.66 - 19.828 - 396.483) / 3780.2
=-0.0764

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 -2.90 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.01041.00581.04210.7831.16880.95870.97210.95530.92361.0233
GMI 0.96551.02570.9781.02681.00030.97870.98870.9840.97470.9764
AQI 0.97951.04721.26291.0070.95331.01591.1861.05270.99770.9881
SGI 1.15861.21321.30011.08750.84731.14891.27061.24091.12161.0469
DEPI 1.18870.85540.68910.93050.91131.0270.95271.03721.06411.0381
SGAI 0.97381.0141.01230.95661.18170.99851.00350.96570.98871.073
LVGI 0.83320.95821.06251.13670.93131.01111.58911.12750.85870.9811
TATA -0.0119-0.0424-0.0508-0.0253-0.0764-0.0185-0.0412-0.0527-0.058-0.056
M-score -2.33-2.46-2.37-2.75-2.86-2.48-2.59-2.57-2.67-2.70

Trimble Navigation Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.00790.97671.00160.92360.91660.95520.89921.02330.9480.9706
GMI 0.99280.99150.99340.97470.96350.95470.95470.97630.99381.0241
AQI 1.04981.01451.02680.99770.99050.9420.97990.98811.00521.0473
SGI 1.18841.14971.12481.12161.11591.11611.10271.04691.01570.9644
DEPI 1.06721.10891.10371.06411.07291.0541.03621.03811.01451.0048
SGAI 0.96910.96461.00170.98871.00251.01451.10741.07311.08051.1081
LVGI 1.11491.04191.0190.85870.80070.79940.89870.98111.03961.0627
TATA -0.0427-0.0546-0.0584-0.058-0.0676-0.0582-0.0659-0.0559-0.071-0.0764
M-score -2.51-2.62-2.63-2.67-2.72-2.67-2.80-2.70-2.87-2.90
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