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Trimble Navigation Ltd (NAS:TRMB)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

TRMB' s Beneish M-Score Range Over the Past 10 Years
Min: -4.97   Max: 2.27
Current: -2.77

-4.97
2.27

During the past 13 years, the highest Beneish M-Score of Trimble Navigation Ltd was 2.27. The lowest was -4.97. And the median was -2.55.


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 * 1.0816+0.528 * 1.0261+0.404 * 0.9811+0.892 * 0.9652+0.115 * 0.9755
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0241+4.679 * -0.0726-0.327 * 0.977
=-2.77

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $378 Mil.
Revenue was 583 + 559.7 + 562.3 + 585.8 = $2,291 Mil.
Gross Profit was 300.6 + 293.1 + 298 + 303.9 = $1,196 Mil.
Total Current Assets was $873 Mil.
Total Assets was $3,750 Mil.
Property, Plant and Equipment(Net PPE) was $155 Mil.
Depreciation, Depletion and Amortization(DDA) was $199 Mil.
Selling, General & Admin. Expense(SGA) was $634 Mil.
Total Current Liabilities was $727 Mil.
Long-Term Debt was $540 Mil.
Net Income was 19.8 + 24 + 37.1 + 25.9 = $107 Mil.
Non Operating Income was 6.1 + 1.9 + 3.9 + 6.1 = $18 Mil.
Cash Flow from Operations was 113.2 + 78.5 + 72.4 + 96.8 = $361 Mil.
Accounts Receivable was $362 Mil.
Revenue was 582.6 + 563.8 + 584.8 + 642.2 = $2,373 Mil.
Gross Profit was 307.2 + 292.5 + 316.8 + 354.6 = $1,271 Mil.
Total Current Assets was $798 Mil.
Total Assets was $3,681 Mil.
Property, Plant and Equipment(Net PPE) was $159 Mil.
Depreciation, Depletion and Amortization(DDA) was $193 Mil.
Selling, General & Admin. Expense(SGA) was $641 Mil.
Total Current Liabilities was $661 Mil.
Long-Term Debt was $611 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)
=(377.8 / 2290.8) / (361.9 / 2373.4)
=0.16492055 / 0.15248167
=1.0816

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)
=(1271.1 / 2373.4) / (1195.6 / 2290.8)
=0.5355608 / 0.52191374
=1.0261

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 - (872.6 + 155.4) / 3749.9) / (1 - (798.4 + 159.2) / 3680.7)
=0.72585936 / 0.7398321
=0.9811

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
=2290.8 / 2373.4
=0.9652

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))
=(192.9 / (192.9 + 159.2)) / (199.1 / (199.1 + 155.4))
=0.54785572 / 0.56163611
=0.9755

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)
=(633.7 / 2290.8) / (641.1 / 2373.4)
=0.27662825 / 0.27011882
=1.0241

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)
=((539.6 + 726.8) / 3749.9) / ((611.4 + 660.9) / 3680.7)
=0.33771567 / 0.34566794
=0.977

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
=(106.8 - 18 - 360.9) / 3749.9
=-0.0726

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 -2.77 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.00581.04210.7831.16880.95870.97210.95530.92361.02321.0456
GMI 1.02570.9781.02681.00030.97870.98870.9840.97470.97641.0266
AQI 1.04721.26291.0070.95331.01591.1861.05270.99770.98641.0202
SGI 1.21321.30011.08750.84731.14891.27061.24091.12161.04690.9561
DEPI 0.85540.68910.93050.91131.0270.95271.03721.06431.03820.988
SGAI 1.0141.01230.95661.18170.99851.00350.96570.98881.0731.038
LVGI 0.95821.06251.13670.93131.01111.58911.12750.85870.98341.0584
TATA -0.0424-0.0508-0.0253-0.0764-0.0185-0.0412-0.0527-0.058-0.0563-0.0698
M-score -2.46-2.37-2.75-2.86-2.48-2.59-2.57-2.67-2.70-2.81

Trimble Navigation Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.92360.91660.95520.89921.02320.89580.97061.01811.04561.0816
GMI 0.97470.96350.95480.95470.97640.99391.02411.03511.02661.0261
AQI 0.99770.99050.9420.97990.98641.03621.04731.01011.02020.9811
SGI 1.12161.11591.11611.10271.04691.01570.96440.94390.95610.9652
DEPI 1.06431.07311.05421.03631.03821.02611.00481.00520.9880.9755
SGAI 0.98881.00261.01451.10741.0731.08041.10810.93071.0381.0241
LVGI 0.85870.80070.79940.89870.98341.11081.06271.10761.05840.977
TATA -0.058-0.0676-0.0582-0.0659-0.0563-0.0733-0.0764-0.0658-0.0698-0.0726
M-score -2.67-2.72-2.67-2.80-2.70-2.94-2.90-2.82-2.81-2.77
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