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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 -3.33 suggests that the company is not a manipulator.

TTM' s 10-Year Beneish M-Score Range
Min: -170.75   Max: -2.42
Current: 0

-170.75
-2.42

During the past 13 years, the highest Beneish M-Score of Tata Motors Ltd was -2.42. The lowest was -170.75. And the median was -3.26.


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 * 0.4935+0.528 * 0.9882+0.404 * 2.259+0.892 * 1.3793+0.115 * 0.4427
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.2019+4.679 * -0.1848-0.327 * 0.759
=-3.33

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,203 Mil.
Revenue was 7729.90353698 + 9134.81228669 + 15866.0150754 + 8777.59472817 = $41,508 Mil.
Gross Profit was 3061.09324759 + 3505.11945392 + 5995.21943049 + 3347.61120264 = $15,909 Mil.
Total Current Assets was $11,733 Mil.
Total Assets was $26,561 Mil.
Property, Plant and Equipment(Net PPE) was $5,989 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,943 Mil.
Selling, General & Admin. Expense(SGA) was $11,308 Mil.
Total Current Liabilities was $9,862 Mil.
Long-Term Debt was $3,019 Mil.
Net Income was 723.47266881 + 1182.59385666 + -197.197654941 + 1019.7693575 = $2,729 Mil.
Non Operating Income was -1385.85209003 + -808.873720137 + 2316.01842546 + 186.161449753 = $307 Mil.
Cash Flow from Operations was 1911.5755627 + 1058.02047782 + 2795.33500838 + 1563.42668863 = $7,328 Mil.
Accounts Receivable was $1,767 Mil.
Revenue was 7426.7310789 + 6216.99544765 + 10373.0199081 + 6076.67731629 = $30,093 Mil.
Gross Profit was 2874.39613527 + 2438.54324734 + 3856.90352221 + 2228.43450479 = $11,398 Mil.
Total Current Assets was $13,367 Mil.
Total Assets was $32,082 Mil.
Property, Plant and Equipment(Net PPE) was $13,989 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,701 Mil.
Selling, General & Admin. Expense(SGA) was $2,560 Mil.
Total Current Liabilities was $14,101 Mil.
Long-Term Debt was $6,399 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)
=(1202.57234727 / 41508.3256272) / (1766.55877617 / 30093.423751)
=0.02897183 / 0.05870249
=0.4935

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)
=(3505.11945392 / 30093.423751) / (3061.09324759 / 41508.3256272)
=0.37876306 / 0.38327355
=0.9882

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 - (11733.1189711 + 5988.74598071) / 26561.0932476) / (1 - (13366.8293076 + 13988.7681159) / 32081.884058)
=0.33278857 / 0.14731948
=2.259

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
=41508.3256272 / 30093.423751
=1.3793

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))
=(1701.40646544 / (1701.40646544 + 13988.7681159)) / (1942.8518607 / (1942.8518607 + 5988.74598071))
=0.1084377 / 0.24495088
=0.4427

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)
=(11308.1403884 / 41508.3256272) / (2560.46124163 / 30093.423751)
=0.27243066 / 0.08508375
=3.2019

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)
=((3019.2926045 + 9861.73633441) / 26561.0932476) / ((6398.58937198 + 14101.2399356) / 32081.884058)
=0.48495854 / 0.63898458
=0.759

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
=(2728.63822802 - 307.454065045 - 7328.35773752) / 26561.0932476
=-0.1848

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 -3.33 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 1.14420.98371.39210.88151.05920.72520.95841.06150.8378
GMI 0.98091.03820.61811.02591.03840.88151.04360.92740.9544
AQI 1.09141.0471.26240.80520.99361.00580.99251.00710.963
SGI 1.20411.4131.18881.5851.43071.3421.16311.07241.1231
DEPI 0.98721.21021.26890.65290.80480.89570.97520.93920.9416
SGAI 1.08770.97242.17860.44440.91262.61660.98691.12191.0249
LVGI 0.89461.11121.16061.29560.92830.87710.97110.9830.9006
TATA 0.0266-0.0174-0.0227-0.0716-0.0849-0.1167-0.1242-0.1393-0.1798
M-score -2.00-2.18-2.38-2.51-2.40-3.28-2.93-3.07-3.38

Tata Motors Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1110.4935
GMI 0.97771.02150.95420.9882
AQI 0.42310.98040.96812.259
SGI 0.86511.01451.18491.3793
DEPI 9.22193.70125.60640.4427
SGAI 0.35380.3223.30153.2019
LVGI 0.77050.62530.75410.759
TATA -0.036-0.0726-0.1526-0.1848
M-score -1.88-2.25-2.85-3.33
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