Switch to:
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 -3.30 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 -3.30.


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 * 0.5075+0.528 * 0.9882+0.404 * 2.259+0.892 * 1.3764+0.115 * 0.4518
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.1905+4.679 * -0.1808-0.327 * 0.759
=-3.30

* 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 $1,218 Mil.
Revenue was 7830.61889251 + 9057.52961083 + 15734.2375415 + 8720.1309329 = $41,343 Mil.
Gross Profit was 3100.9771987 + 3475.46531303 + 5945.42524917 + 3325.69558101 = $15,848 Mil.
Total Current Assets was $11,886 Mil.
Total Assets was $26,907 Mil.
Property, Plant and Equipment(Net PPE) was $6,067 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,936 Mil.
Selling, General & Admin. Expense(SGA) was $11,231 Mil.
Total Current Liabilities was $9,990 Mil.
Long-Term Debt was $3,059 Mil.
Net Income was 732.899022801 + 1172.58883249 + -195.559800664 + 1013.09328969 = $2,723 Mil.
Non Operating Income was -1403.90879479 + -802.030456853 + 2296.78239203 + 184.942716858 = $276 Mil.
Cash Flow from Operations was 1936.48208469 + 1049.06937394 + 2772.1179402 + 1553.19148936 = $7,311 Mil.
Accounts Receivable was $1,744 Mil.
Revenue was 7332.27344992 + 6342.10526316 + 10216.5641026 + 6145.39579968 = $30,036 Mil.
Gross Profit was 2837.83783784 + 2487.61609907 + 3798.73001508 + 2253.63489499 = $11,378 Mil.
Total Current Assets was $13,197 Mil.
Total Assets was $31,674 Mil.
Property, Plant and Equipment(Net PPE) was $13,811 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,694 Mil.
Selling, General & Admin. Expense(SGA) was $2,558 Mil.
Total Current Liabilities was $13,922 Mil.
Long-Term Debt was $6,317 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)
=(1218.24104235 / 41342.5169778) / (1744.09062003 / 30036.3386153)
=0.02946703 / 0.05806602
=0.5075

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)
=(3475.46531303 / 30036.3386153) / (3100.9771987 / 41342.5169778)
=0.37880179 / 0.38332362
=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 - (11885.9934853 + 6066.7752443) / 26907.1661238) / (1 - (13196.8219396 + 13810.8505564) / 31673.8473768)
=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
=41342.5169778 / 30036.3386153
=1.3764

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))
=(1694.48324166 / (1694.48324166 + 13810.8505564)) / (1935.66325774 / (1935.66325774 + 6066.7752443))
=0.10928389 / 0.24188418
=0.4518

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)
=(11231.2620154 / 41342.5169778) / (2557.53732651 / 30036.3386153)
=0.27166372 / 0.08514811
=3.1905

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)
=((3058.63192182 + 9990.22801303) / 26907.1661238) / ((6317.20826709 + 13921.8918919) / 31673.8473768)
=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
=(2723.02134431 - 275.785857243 - 7310.86088819) / 26907.1661238
=-0.1808

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 -3.30 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 1.18481.39981.2271.51151.45861.3491.16531.06811.1308
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 -2.01-2.19-2.34-2.57-2.38-3.28-2.92-3.07-3.37

Tata Motors Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1110.5075
GMI 0.97671.02060.95410.9882
AQI 0.42310.98040.96812.259
SGI 0.86521.01021.18321.3764
DEPI 9.15053.70215.58630.4518
SGAI 0.35620.32423.28983.1905
LVGI 0.77050.62530.75410.759
TATA -0.0348-0.0706-0.1516-0.1808
M-score -1.89-2.25-2.85-3.30
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