Switch to:
Trimble Navigation Ltd (NAS:TRMB)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

TRMB' s 10-Year Beneish M-Score Range
Min: -4.97   Max: 1.58
Current: -2.65

-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 -2.51.


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 * 0.9446+0.528 * 0.9747+0.404 * 0.9977+0.892 * 1.1216+0.115 * 1.0641
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9887+4.679 * -0.058-0.327 * 0.8587
=-2.65

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $361 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.
Net Income was 59.997 + 54.469 + 54.581 + 49.808 = $219 Mil.
Non Operating Income was 3.08 + 4.605 + 8.041 + 2.983 = $19 Mil.
Cash Flow from Operations was 136.227 + 106.365 + 134.655 + 37.388 = $415 Mil.
Accounts Receivable was $341 Mil.
Revenue was 515.523 + 504.763 + 517.56 + 502.267 = $2,040 Mil.
Gross Profit was 256.464 + 262.868 + 267.696 + 259.15 = $1,046 Mil.
Total Current Assets was $816 Mil.
Total Assets was $3,469 Mil.
Property, Plant and Equipment(Net PPE) was $97 Mil.
Depreciation, Depletion and Amortization(DDA) was $149 Mil.
Selling, General & Admin. Expense(SGA) was $509 Mil.
Total Current Liabilities was $469 Mil.
Long-Term Debt was $873 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)
=(361.075 / 2288.124) / (340.804 / 2040.113)
=0.15780395 / 0.16705153
=0.9446

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)
=(295.053 / 2040.113) / (319.454 / 2288.124)
=0.51280395 / 0.52611747
=0.9747

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 - (837.017 + 142.975) / 3700.84) / (1 - (815.973 + 96.89) / 3469.104)
=0.73519741 / 0.73685914
=0.9977

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
=2288.124 / 2040.113
=1.1216

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))
=(149.398 / (149.398 + 96.89)) / (189.577 / (189.577 + 142.975))
=0.60659878 / 0.57006724
=1.0641

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)
=(564.982 / 2288.124) / (509.495 / 2040.113)
=0.24691931 / 0.24973862
=0.9887

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)
=((652.056 + 576.99) / 3700.84) / ((873.066 + 468.67) / 3469.104)
=0.3320992 / 0.3867673
=0.8587

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
=(218.855 - 18.709 - 414.635) / 3700.84
=-0.058

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 -2.65 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.02950.9110.86950.89050.83410.97291.03150.9880.99730.9446
GMI 0.97060.98870.97970.98850.98410.9840.99280.99150.99340.9747
AQI 1.18391.1861.19161.24241.01581.05271.04981.01451.02680.9977
SGI 1.22761.27061.29641.30661.2791.24091.18841.14971.12481.1216
DEPI 1.0010.95270.93580.93520.94471.03721.06721.10891.10371.0641
SGAI 1.0541.00350.99970.98640.94270.96570.96910.96461.00170.9887
LVGI 1.56241.58911.6521.79410.96611.12751.11491.04191.0190.8587
TATA -0.021-0.0412-0.0485-0.0479-0.0535-0.0527-0.0427-0.0546-0.0584-0.058
M-score -2.48-2.64-2.72-2.70-2.62-2.56-2.49-2.61-2.63-2.65
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide