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Tata Motors Ltd (NYSE:TTM)
Beneish M-Score
0.00 (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.

Tata Motors Ltd has a M-score of -3.24 suggests that the company is not a manipulator.

TTM' s 10-Year Beneish M-Score Range
Min: -170.75   Max: -2.56
Current: 0

-170.75
-2.56

During the past 13 years, the highest Beneish M-Score of Tata Motors Ltd was -2.56. The lowest was -170.75. And the median was -2.64.


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 Tata Motors 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 * 0.8574+0.528 * 0.9881+0.404 * 0.9335+0.892 * 1.1711+0.115 * 1.4002
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.1378+4.679 * -0.0958-0.327 * 0.9453
=-3.24

* 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 $1,376 Mil.
Revenue was 9200.31298905 + 7830.61889251 + 9057.52961083 + 15734.2375415 = $41,823 Mil.
Gross Profit was 3621.28325509 + 3100.9771987 + 3475.46531303 + 5945.42524917 = $16,143 Mil.
Total Current Assets was $12,216 Mil.
Total Assets was $27,432 Mil.
Property, Plant and Equipment(Net PPE) was $6,474 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,989 Mil.
Selling, General & Admin. Expense(SGA) was $11,348 Mil.
Total Current Liabilities was $9,942 Mil.
Long-Term Debt was $3,505 Mil.
Net Income was 928.012519562 + 732.899022801 + 1172.58883249 + -195.559800664 = $2,638 Mil.
Non Operating Income was -1777.77777778 + -1403.90879479 + -802.030456853 + 2296.78239203 = $-1,687 Mil.
Cash Flow from Operations was 1194.05320814 + 1936.48208469 + 1049.06937394 + 2772.1179402 = $6,952 Mil.
Accounts Receivable was $1,370 Mil.
Revenue was 8720.1309329 + 8888.86168521 + 7886.05263158 + 10216.5641026 = $35,712 Mil.
Gross Profit was 3325.69558101 + 3478.60413355 + 3017.08823529 + 3798.73001508 = $13,620 Mil.
Total Current Assets was $11,191 Mil.
Total Assets was $24,308 Mil.
Property, Plant and Equipment(Net PPE) was $4,818 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,363 Mil.
Selling, General & Admin. Expense(SGA) was $3,088 Mil.
Total Current Liabilities was $8,997 Mil.
Long-Term Debt was $3,609 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)
=(1375.58685446 / 41822.6990339) / (1369.88543372 / 35711.6093523)
=0.03289092 / 0.03835967
=0.8574

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)
=(3100.9771987 / 35711.6093523) / (3621.28325509 / 41822.6990339)
=0.38139188 / 0.38599018
=0.9881

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 - (12215.9624413 + 6474.17840376) / 27431.9248826) / (1 - (11191.4893617 + 4818.33060556) / 24307.6923077)
=0.31867192 / 0.34136817
=0.9335

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
=41822.6990339 / 35711.6093523
=1.1711

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))
=(2362.75411129 / (2362.75411129 + 4818.33060556)) / (1988.67161521 / (1988.67161521 + 6474.17840376))
=0.32902468 / 0.2349884
=1.4002

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)
=(11348.3767789 / 41822.6990339) / (3088.22205176 / 35711.6093523)
=0.27134492 / 0.0864767
=3.1378

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)
=((3505.47730829 + 9942.0970266) / 27431.9248826) / ((3608.83797054 + 8996.72667758) / 24307.6923077)
=0.49021621 / 0.51858336
=0.9453

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
=(2637.94057419 - -1686.93463739 - 6951.72260697) / 27431.9248826
=-0.0958

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.

Tata Motors Ltd has a M-score of -3.24 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.

Tata Motors Ltd Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 1.14420.98371.39210.88151.05920.72520.95841.04720.8492
GMI 0.98091.03820.61811.02590.97531.02750.95330.93720.9445
AQI 1.09141.0471.26240.77791.0131.02110.98561.03970.9394
SGI 1.18481.39981.2271.51151.45861.3491.16531.06631.1327
DEPI 0.98721.21021.26890.65790.79850.8960.97520.92070.9606
SGAI 1.08770.97242.17861.48210.27360.78863.29661.10261.0359
LVGI 0.89461.11121.16061.29410.92950.87690.97330.97670.9045
TATA 0.0266-0.0174-0.0227-0.0716-0.1455-0.0611-0.1246-0.1404-0.1798
M-score -2.01-2.19-2.34-2.76-2.58-2.62-3.37-3.07-3.37

Tata Motors Ltd Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1110.59820.8574
GMI 0.96940.88910.90890.94080.9881
AQI 0.42960.99540.98292.2590.9335
SGI 1.01991.03371.19531.16771.1711
DEPI 7.07323.03935.58630.58451.4002
SGAI 0.37130.34993.12283.04113.1378
LVGI 0.77040.62520.75390.7590.9453
TATA -0.1429-0.2073-0.1892-0.1808-0.0958
M-score -2.50-3.01-3.00-3.39-3.24
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