Switch to:
Trio-Tech International (AMEX:TRT)
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.

Trio-Tech International has a M-score of -2.76 suggests that the company is not a manipulator.

TRT' s 10-Year Beneish M-Score Range
Min: -3.89   Max: 21.23
Current: -2.76

-3.89
21.23

During the past 13 years, the highest Beneish M-Score of Trio-Tech International was 21.23. The lowest was -3.89. And the median was -2.47.


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 Trio-Tech International 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 * 1.0476+0.528 * 0.9769+0.404 * 0.9874+0.892 * 1.1266+0.115 * 1.0302
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9977+4.679 * -0.0833-0.327 * 1.1018
=-2.76

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $9.40 Mil.
Revenue was 8.039 + 9.339 + 9.497 + 8.516 = $35.39 Mil.
Gross Profit was 1.967 + 1.987 + 2.091 + 1.697 = $7.74 Mil.
Total Current Assets was $14.16 Mil.
Total Assets was $34.20 Mil.
Property, Plant and Equipment(Net PPE) was $13.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.41 Mil.
Selling, General & Admin. Expense(SGA) was $7.59 Mil.
Total Current Liabilities was $10.59 Mil.
Long-Term Debt was $2.83 Mil.
Net Income was 0.157 + -0.365 + -0.017 + 0.046 = $-0.18 Mil.
Non Operating Income was 0.068 + -0.206 + 0.161 + 0.105 = $0.13 Mil.
Cash Flow from Operations was 0.953 + 0.988 + 1.213 + -0.612 = $2.54 Mil.
Accounts Receivable was $7.96 Mil.
Revenue was 6.458 + 7.221 + 9.575 + 8.16 = $31.41 Mil.
Gross Profit was 1.267 + 1.548 + 1.839 + 2.059 = $6.71 Mil.
Total Current Assets was $12.56 Mil.
Total Assets was $32.46 Mil.
Property, Plant and Equipment(Net PPE) was $13.16 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.52 Mil.
Selling, General & Admin. Expense(SGA) was $6.75 Mil.
Total Current Liabilities was $8.38 Mil.
Long-Term Debt was $3.18 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)
=(9.395 / 35.391) / (7.96 / 31.414)
=0.26546297 / 0.25339021
=1.0476

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)
=(1.987 / 31.414) / (1.967 / 35.391)
=0.21369453 / 0.21875618
=0.9769

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 - (14.162 + 13.024) / 34.196) / (1 - (12.562 + 13.156) / 32.456)
=0.20499474 / 0.20760414
=0.9874

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
=35.391 / 31.414
=1.1266

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))
=(2.521 / (2.521 + 13.156)) / (2.409 / (2.409 + 13.024))
=0.16080883 / 0.15609408
=1.0302

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)
=(7.588 / 35.391) / (6.751 / 31.414)
=0.21440479 / 0.21490418
=0.9977

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)
=((2.83 + 10.588) / 34.196) / ((3.175 + 8.384) / 32.456)
=0.39238507 / 0.3561437
=1.1018

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
=(-0.179 - 0.128 - 2.542) / 34.196
=-0.0833

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.

Trio-Tech International 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.

Trio-Tech International Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 1.07730.84651.75910.540.98191.32521.64220.65991.86270.7949
GMI 0.95041.02650.88531.05371.16450.91241.28110.81181.41680.8266
AQI 56.28361.06010.57191.22664.5832.54240.57161.43790.93151.0268
SGI 0.87831.3431.16111.60660.86450.49471.84690.96230.87521.0215
DEPI 1.08711.03150.87850.71871.1071.02451.61491.01520.88151.0412
SGAI 1.08760.91731.13670.65331.28321.45390.61311.31221.00610.8898
LVGI 1.12361.00610.89280.81161.02840.61972.51220.6751.53950.9774
TATA -0.1042-0.04520.3196-0.1413-0.0778-0.1193-0.005-0.15830.0009-0.1387
M-score 19.26-2.47-0.38-2.81-1.49-2.56-1.54-3.44-1.79-3.35

Trio-Tech International Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.43081.79781.86271.34380.78450.80170.79490.82341.16541.0476
GMI 1.3271.64231.41681.27270.87060.67860.82660.83990.94170.9769
AQI 1.0280.95060.93150.93791.11451.10841.02681.09830.94920.9874
SGI 0.61390.72840.87521.01821.14461.04481.02150.99421.0411.1266
DEPI 0.95610.95460.88150.97870.97611.00061.04120.97781.05271.0302
SGAI 1.7931.40781.00610.7980.67160.75580.88950.98121.04170.9977
LVGI 1.06361.38511.53951.31581.02380.93650.97740.94481.09021.1018
TATA -0.0878-0.03920.00090.0065-0.1226-0.1507-0.1386-0.1785-0.0881-0.0833
M-score -2.82-2.05-1.79-2.07-3.10-3.39-3.35-3.51-2.79-2.76
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
Email Hide