Switch to:
Tata Motors Ltd (NYSE:TTM)
Beneish M-Score
-2.69 (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 -2.78 suggests that the company is not a manipulator.

TTM' s Beneish M-Score Range Over the Past 10 Years
Min: -170.75   Max: -1.82
Current: -2.69

-170.75
-1.82

During the past 13 years, the highest Beneish M-Score of Tata Motors Ltd was -1.82. The lowest was -170.75. And the median was -2.30.


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 * 1.1505+0.528 * 0.9578+0.404 * 0.8302+0.892 * 0.9744+0.115 * 0.9046
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.575+4.679 * -0.0126-0.327 * 0.962
=-2.78

* 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 $1,840 Mil.
Revenue was 9267.23109963 + 9611.35543713 + 10815.5408487 + 11072.9375143 = $40,767 Mil.
Gross Profit was 3633.76139357 + 4113.95574537 + 4330.56553645 + 4239.75753942 = $16,318 Mil.
Total Current Assets was $15,802 Mil.
Total Assets was $38,617 Mil.
Property, Plant and Equipment(Net PPE) was $19,118 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,418 Mil.
Selling, General & Admin. Expense(SGA) was $9,869 Mil.
Total Current Liabilities was $14,839 Mil.
Long-Term Debt was $8,056 Mil.
Net Income was -64.9511007803 + 434.128398941 + 274.725714423 + 408.293478729 = $1,052 Mil.
Non Operating Income was -363.880924997 + 29.8741472761 + 13.4473955874 + 1858.78473092 = $1,538 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $1,641 Mil.
Revenue was 9957.82756628 + 10827.9884895 + 10716.8635558 + 10334.2172105 = $41,837 Mil.
Gross Profit was 3887.35680881 + 4176.10112376 + 4107.33412089 + 3869.23524939 = $16,040 Mil.
Total Current Assets was $15,868 Mil.
Total Assets was $37,939 Mil.
Property, Plant and Equipment(Net PPE) was $17,697 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,001 Mil.
Selling, General & Admin. Expense(SGA) was $3,933 Mil.
Total Current Liabilities was $15,501 Mil.
Long-Term Debt was $7,881 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)
=(1840.25348098 / 40767.0648998) / (1641.44071359 / 41836.8968221)
=0.04514069 / 0.03923428
=1.1505

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)
=(4113.95574537 / 41836.8968221) / (3633.76139357 / 40767.0648998)
=0.38339429 / 0.40027508
=0.9578

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 - (15801.6419135 + 19118.3374719) / 38616.6409992) / (1 - (15867.8699982 + 17696.5200599) / 37938.7069441)
=0.09572717 / 0.11529958
=0.8302

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
=40767.0648998 / 41836.8968221
=0.9744

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))
=(2000.78889439 / (2000.78889439 + 17696.5200599)) / (2418.4232697 / (2418.4232697 + 19118.3374719))
=0.10157676 / 0.1122928
=0.9046

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)
=(9869.31869036 / 40767.0648998) / (3933.31390476 / 41836.8968221)
=0.24209049 / 0.09401543
=2.575

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)
=((8056.36218823 + 14838.9401315) / 38616.6409992) / ((7881.49122461 + 15501.4105646) / 37938.7069441)
=0.59288695 / 0.61633365
=0.962

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
=(1052.19649131 - 1538.22534878 - 0) / 38616.6409992
=-0.0126

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 -2.78 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.14420.98371.39210.88151.05920.72520.95841.06150.83781.0631
GMI 0.98091.03820.61811.02591.03840.88151.04360.92740.95440.9762
AQI 1.09141.0471.26240.80520.99361.00580.99251.00710.9630.9678
SGI 1.19311.39581.21551.53281.44161.34611.2051.05221.10471.0962
DEPI 0.98721.21021.26890.65290.80480.89570.97520.93920.94160.9792
SGAI 1.08770.97242.17860.44440.91262.61660.98691.12191.01940.3462
LVGI 0.89461.11121.16061.29560.92830.87710.97110.9830.90061.0488
TATA 0.0266-0.0174-0.0227-0.0716-0.0849-0.1167-0.1242-0.1393-0.1798-0.0992
M-score -2.01-2.19-2.35-2.55-2.40-3.28-2.89-3.09-3.39-2.73

Tata Motors Ltd Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.1505
GMI 0.9578
AQI 0.8302
SGI 0.9744
DEPI 0.9046
SGAI 2.575
LVGI 0.962
TATA -0.0126
M-score -2.78
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)

GuruFocus Premium Plus Membership

FEEDBACK