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Trimble Inc (NAS:TRMB)
Beneish M-Score
-2.74 (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 Inc has a M-score of -2.74 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: -2.74

-4.97
2.27

During the past 13 years, the highest Beneish M-Score of Trimble Inc was 2.27. The lowest was -4.97. And the median was -2.56.


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 Inc 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 * 1.0525+0.528 * 1.0044+0.404 * 0.9671+0.892 * 1.0182+0.115 * 0.9736
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0524+4.679 * -0.0691-0.327 * 0.9369
=-2.74

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $369 Mil.
Revenue was 584.1 + 609.6 + 583 + 559.7 = $2,336 Mil.
Gross Profit was 309 + 315.6 + 300.6 + 293.1 = $1,218 Mil.
Total Current Assets was $958 Mil.
Total Assets was $3,731 Mil.
Property, Plant and Equipment(Net PPE) was $149 Mil.
Depreciation, Depletion and Amortization(DDA) was $195 Mil.
Selling, General & Admin. Expense(SGA) was $632 Mil.
Total Current Liabilities was $694 Mil.
Long-Term Debt was $525 Mil.
Net Income was 39.2 + 35.7 + 19.8 + 24 = $119 Mil.
Non Operating Income was 3.5 + 4.4 + 6.1 + 1.9 = $16 Mil.
Cash Flow from Operations was 89.5 + 79.3 + 113.2 + 78.5 = $361 Mil.
Accounts Receivable was $345 Mil.
Revenue was 562.3 + 585.8 + 582.6 + 563.83 = $2,295 Mil.
Gross Profit was 298 + 303.9 + 307.2 + 292.608 = $1,202 Mil.
Total Current Assets was $853 Mil.
Total Assets was $3,720 Mil.
Property, Plant and Equipment(Net PPE) was $162 Mil.
Depreciation, Depletion and Amortization(DDA) was $199 Mil.
Selling, General & Admin. Expense(SGA) was $590 Mil.
Total Current Liabilities was $688 Mil.
Long-Term Debt was $609 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)
=(369.2 / 2336.4) / (344.5 / 2294.53)
=0.15802089 / 0.15013968
=1.0525

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)
=(1201.708 / 2294.53) / (1218.3 / 2336.4)
=0.5237273 / 0.52144325
=1.0044

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 - (957.9 + 149.4) / 3731.4) / (1 - (853 + 162) / 3719.9)
=0.70324811 / 0.7271432
=0.9671

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
=2336.4 / 2294.53
=1.0182

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))
=(199.004 / (199.004 + 162)) / (195 / (195 + 149.4))
=0.55125151 / 0.56620209
=0.9736

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)
=(631.8 / 2336.4) / (589.575 / 2294.53)
=0.27041602 / 0.25694805
=1.0524

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)
=((524.5 + 694) / 3731.4) / ((609.1 + 687.5) / 3719.9)
=0.32655304 / 0.34855776
=0.9369

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
=(118.7 - 15.9 - 360.5) / 3731.4
=-0.0691

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 Inc has a M-score of -2.74 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 local exchange's currency.

Trimble Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.00581.04210.7831.16880.95870.97210.94720.94021.01381.0455
GMI 1.02570.9781.02681.00030.97870.98870.9840.97470.97641.0266
AQI 1.04721.26291.0070.95331.01591.1861.05270.99770.98811.0185
SGI 1.21321.30011.08750.84731.14891.27061.24091.12161.04690.9561
DEPI 0.85540.68910.93050.91131.0270.95511.03451.06411.03810.9882
SGAI 1.0141.01230.95661.18170.99851.00350.96570.98871.0731.038
LVGI 0.95821.06251.13670.93131.01111.58911.12750.85870.98111.0609
TATA -0.0424-0.0508-0.0253-0.0764-0.0185-0.0412-0.0527-0.058-0.056-0.0698
M-score -2.46-2.37-2.75-2.86-2.48-2.59-2.58-2.66-2.71-2.81

Trimble Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.95520.89921.01380.94810.97061.01811.04551.0221.0631.0525
GMI 0.95480.95470.97640.99381.0241.0351.02661.02621.00991.0044
AQI 0.9420.97990.98811.00521.04731.01011.01851.01140.98160.9671
SGI 1.11611.10271.04691.01570.96440.94390.95610.96520.9991.0182
DEPI 1.05381.03621.03811.01451.00511.0050.98820.98680.96990.9736
SGAI 1.01441.10741.0731.08051.10820.93061.0381.02410.98831.0524
LVGI 0.79940.89870.98111.03961.06271.10761.06091.04391.09380.9369
TATA -0.0582-0.0659-0.056-0.071-0.0764-0.0658-0.0698-0.0726-0.0648-0.0691
M-score -2.67-2.80-2.71-2.87-2.90-2.82-2.81-2.83-2.76-2.74
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