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Trimble Navigation Ltd (NAS:TRMB)
Beneish M-Score
-2.82 (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 -2.82 suggests that the company is not a manipulator.

TRMB' s Beneish M-Score Range Over the Past 10 Years
Min: -4.97   Max: 2.29
Current: -2.82

-4.97
2.29

During the past 13 years, the highest Beneish M-Score of Trimble Navigation Ltd was 2.29. The lowest was -4.97. And the median was -2.53.


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 * 1.018+0.528 * 1.0351+0.404 * 1.0101+0.892 * 0.9439+0.115 * 1.0053
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9307+4.679 * -0.0658-0.327 * 1.1076
=-2.82

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $345 Mil.
Revenue was 562.3 + 585.8 + 582.6 + 563.846 = $2,295 Mil.
Gross Profit was 298 + 303.9 + 307.2 + 292.544 = $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.
Net Income was 37.1 + 25.9 + 34.1 + 55.818 = $153 Mil.
Non Operating Income was 3.9 + 6.1 + 11.1 + 3.673 = $25 Mil.
Cash Flow from Operations was 72.4 + 96.8 + 107.2 + 96.583 = $373 Mil.
Accounts Receivable was $359 Mil.
Revenue was 584.8 + 642.2 + 604.7 + 599.218 = $2,431 Mil.
Gross Profit was 316.8 + 354.6 + 326.9 + 319.454 = $1,318 Mil.
Total Current Assets was $916 Mil.
Total Assets was $3,819 Mil.
Property, Plant and Equipment(Net PPE) was $154 Mil.
Depreciation, Depletion and Amortization(DDA) was $191 Mil.
Selling, General & Admin. Expense(SGA) was $671 Mil.
Total Current Liabilities was $624 Mil.
Long-Term Debt was $578 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)
=(344.5 / 2294.546) / (358.504 / 2430.918)
=0.15013863 / 0.1474768
=1.018

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)
=(303.9 / 2430.918) / (298 / 2294.546)
=0.54208081 / 0.52369576
=1.0351

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 - (853 + 162) / 3719.9) / (1 - (916.041 + 153.823) / 3819.374)
=0.7271432 / 0.71988499
=1.0101

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
=2294.546 / 2430.918
=0.9439

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))
=(191.134 / (191.134 + 153.823)) / (198.941 / (198.941 + 162))
=0.55408065 / 0.55117318
=1.0053

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)
=(589.589 / 2294.546) / (671.167 / 2430.918)
=0.25695236 / 0.27609611
=0.9307

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)
=((609.1 + 687.5) / 3719.9) / ((577.719 + 624.268) / 3819.374)
=0.34855776 / 0.31470786
=1.1076

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
=(152.918 - 24.773 - 372.983) / 3719.9
=-0.0658

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 -2.82 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.97671.00160.92360.91660.95520.89921.02330.9480.97061.018
GMI 0.99150.99340.97470.96350.95470.95470.97640.99391.02411.0351
AQI 1.01451.02680.99770.99050.9420.97990.98811.00521.04731.0101
SGI 1.14971.12481.12161.11591.11611.10271.04691.01570.96440.9439
DEPI 1.10891.10371.06411.07291.0541.03611.03811.01451.00481.0053
SGAI 0.96461.00170.98871.00251.01451.10741.0731.08041.10810.9307
LVGI 1.04191.0190.85870.80070.79940.89870.98111.03961.06271.1076
TATA -0.0546-0.0584-0.058-0.0676-0.0582-0.0659-0.056-0.071-0.0764-0.0658
M-score -2.62-2.63-2.67-2.72-2.67-2.80-2.70-2.87-2.90-2.82
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