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Trimble Navigation Ltd (NAS:TRMB)
Beneish M-Score
-2.76 (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 -2.76 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: -2.76

-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 -2.56.


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 * 1.063+0.528 * 1.0098+0.404 * 0.9816+0.892 * 0.999+0.115 * 0.97
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9883+4.679 * -0.0648-0.327 * 1.0938
=-2.76

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $378 Mil.
Revenue was 609.6 + 583 + 559.7 + 562.3 = $2,315 Mil.
Gross Profit was 315.6 + 300.6 + 293.1 + 298 = $1,207 Mil.
Total Current Assets was $937 Mil.
Total Assets was $3,752 Mil.
Property, Plant and Equipment(Net PPE) was $152 Mil.
Depreciation, Depletion and Amortization(DDA) was $198 Mil.
Selling, General & Admin. Expense(SGA) was $636 Mil.
Total Current Liabilities was $721 Mil.
Long-Term Debt was $595 Mil.
Net Income was 35.7 + 19.8 + 24 + 37.1 = $117 Mil.
Non Operating Income was 4.4 + 6.1 + 1.9 + 3.9 = $16 Mil.
Cash Flow from Operations was 79.3 + 113.2 + 78.5 + 72.4 = $343 Mil.
Accounts Receivable was $356 Mil.
Revenue was 585.8 + 582.6 + 563.8 + 584.8 = $2,317 Mil.
Gross Profit was 303.9 + 307.2 + 292.5 + 316.8 = $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.



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)
=(377.5 / 2314.6) / (355.5 / 2317)
=0.16309514 / 0.15343116
=1.063

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)
=(1220.4 / 2317) / (1207.3 / 2314.6)
=0.52671558 / 0.521602
=1.0098

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 - (936.8 + 152) / 3751.6) / (1 - (885.1 + 161.7) / 3780.2)
=0.70977716 / 0.72308343
=0.9816

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
=2314.6 / 2317
=0.999

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))
=(197 / (197 + 161.7)) / (198.4 / (198.4 + 152))
=0.54920546 / 0.56621005
=0.97

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)
=(636.3 / 2314.6) / (644.5 / 2317)
=0.27490711 / 0.27816142
=0.9883

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)
=((594.7 + 721) / 3751.6) / ((515.4 + 696.6) / 3780.2)
=0.3507037 / 0.32061796
=1.0938

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
=(116.6 - 16.3 - 343.4) / 3751.6
=-0.0648

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 -2.76 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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.91660.95520.89921.02320.9480.97061.01811.04561.0221.063
GMI 0.96350.95480.95470.97640.99391.02411.03511.02661.02611.0098
AQI 0.99050.9420.97990.98641.00521.04731.01011.02021.01140.9816
SGI 1.11591.11611.10271.04691.01570.96440.94390.95610.96520.999
DEPI 1.07311.05421.03631.03821.01441.00481.00520.9880.98670.97
SGAI 1.00261.01451.10741.0731.08041.10810.93071.0381.02410.9883
LVGI 0.80070.79940.89870.98341.03961.06271.10761.05841.04391.0938
TATA -0.0676-0.0582-0.0659-0.0563-0.071-0.0764-0.0658-0.0698-0.0726-0.0648
M-score -2.72-2.67-2.80-2.70-2.87-2.90-2.82-2.81-2.83-2.76
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