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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: 1.58
Current: -2.7

-4.97
1.58

During the past 13 years, the highest Beneish M-Score of Trimble Navigation Ltd was 1.58. 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 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 * 1.0233+0.528 * 0.9764+0.404 * 0.9881+0.892 * 1.0469+0.115 * 1.0381
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.073+4.679 * -0.056-0.327 * 0.9811
=-2.70

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $362 Mil.
Revenue was 563.83 + 584.796 + 642.199 + 604.721 = $2,396 Mil.
Gross Profit was 292.608 + 316.773 + 354.571 + 326.892 = $1,291 Mil.
Total Current Assets was $903 Mil.
Total Assets was $3,874 Mil.
Property, Plant and Equipment(Net PPE) was $157 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General & Admin. Expense(SGA) was $635 Mil.
Total Current Liabilities was $588 Mil.
Long-Term Debt was $674 Mil.
Net Income was 55.828 + 11.832 + 77.834 + 68.624 = $214 Mil.
Non Operating Income was 3.587 + -0.959 + 4.798 + 16.447 = $24 Mil.
Cash Flow from Operations was 96.619 + 95.876 + 131.193 + 83.395 = $407 Mil.
Accounts Receivable was $338 Mil.
Revenue was 599.218 + 556.502 + 576.293 + 556.111 = $2,288 Mil.
Gross Profit was 319.454 + 295.053 + 302.401 + 286.914 = $1,204 Mil.
Total Current Assets was $837 Mil.
Total Assets was $3,701 Mil.
Property, Plant and Equipment(Net PPE) was $143 Mil.
Depreciation, Depletion and Amortization(DDA) was $190 Mil.
Selling, General & Admin. Expense(SGA) was $565 Mil.
Total Current Liabilities was $577 Mil.
Long-Term Debt was $652 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)
=(362.049 / 2395.546) / (337.932 / 2288.124)
=0.15113423 / 0.14768955
=1.0233

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)
=(316.773 / 2288.124) / (292.608 / 2395.546)
=0.52611747 / 0.53885169
=0.9764

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 - (902.616 + 157.355) / 3874.348) / (1 - (837.017 + 142.975) / 3700.84)
=0.72641306 / 0.73519741
=0.9881

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
=2395.546 / 2288.124
=1.0469

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))
=(189.577 / (189.577 + 142.975)) / (191.641 / (191.641 + 157.355))
=0.57006724 / 0.54912091
=1.0381

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)
=(634.689 / 2395.546) / (564.982 / 2288.124)
=0.26494544 / 0.24691931
=1.073

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)
=((674.015 + 588.299) / 3874.348) / ((652.056 + 576.99) / 3700.84)
=0.32581327 / 0.3320992
=0.9811

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
=(214.118 - 23.873 - 407.083) / 3874.348
=-0.056

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

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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.87220.95531.00790.97671.00160.92360.91660.95520.89921.0233
GMI 0.98410.9840.99280.99150.99340.97470.96350.95480.95470.9764
AQI 1.01581.05271.04981.01451.02680.99770.99050.9420.97990.9881
SGI 1.2791.24091.18841.14971.12481.12161.11591.11611.10271.0469
DEPI 0.94471.03721.06721.10891.10371.06411.0731.05381.03621.0381
SGAI 0.94270.96570.96910.96461.00170.98871.00251.01441.10741.073
LVGI 0.96611.12751.11491.04191.0190.85870.80070.79940.89870.9811
TATA -0.0535-0.0527-0.0427-0.0546-0.0584-0.058-0.0675-0.0582-0.0659-0.056
M-score -2.59-2.57-2.51-2.62-2.63-2.67-2.72-2.67-2.80-2.70
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