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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 signals that the company is 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 12 years, the highest Beneish M-Score of Tata Motors, Ltd. was -2.56. The lowest was -170.75. And the median was -3.19.


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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,659 Mil.
Revenue was 8777.59472817 + 9003.37198068 + 7730.48558422 + 10373.0199081 = $35,884 Mil.
Gross Profit was 3347.61120264 + 3523.41706924 + 2957.57056146 + 3856.90352221 = $13,686 Mil.
Total Current Assets was $11,265 Mil.
Total Assets was $24,468 Mil.
Property, Plant and Equipment(Net PPE) was $4,850 Mil.
Depreciation, Depletion and Amortization(DDA) was $364 Mil.
Selling, General & Admin. Expense(SGA) was $3,101 Mil.
Total Current Liabilities was $9,056 Mil.
Long-Term Debt was $3,633 Mil.
Net Income was 1019.7693575 + 560.608695652 + 285.207890744 + 706.02143951 = $2,572 Mil.
Non Operating Income was 186.161449753 + -6.60869565217 + 0.602427921093 + 36.8453292496 = $217 Mil.
Cash Flow from Operations was 1563.42668863 + 0 + 0 + 0 = $1,563 Mil.
Accounts Receivable was $0 Mil.
Revenue was 6076.67731629 + 8109.18971061 + 7752.76443058 + 10386.3856 = $32,325 Mil.
Gross Profit was 2228.43450479 + 2929.88102894 + 2787.01092044 + 3563.7648 = $11,509 Mil.
Total Current Assets was $0 Mil.
Total Assets was $0 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,339 Mil.
Selling, General & Admin. Expense(SGA) was $8,326 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $0 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)
=(1658.9785832 / 35884.4722012) / (0 / 32325.0170575)
=0.0462311 / 0
=

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)
=(3523.41706924 / 32325.0170575) / (3347.61120264 / 35884.4722012)
=0.35604285 / 0.38137672
=

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 - (11265.2388797 + 4850.08237232) / 24467.8747941) / (1 - (0 + 0) / 0)
=0.34136817 / 1
=

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
=35884.4722012 / 32325.0170575
=

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))
=(1338.96165112 / (1338.96165112 + 0)) / (364.085667216 / (364.085667216 + 4850.08237232))
=1 / 0.06982622
=

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)
=(3100.9143308 / 35884.4722012) / (8326.14810354 / 32325.0170575)
=0.08641382 / 0.25757598
=

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)
=((3632.61943987 + 9056.01317957) / 24467.8747941) / ((0 + 0) / 0)
=0.51858336 / 0
=

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
=(2571.6073834 - 217.000511271 - 1563.42668863) / 24467.8747941
=0.0323

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 signals that the company is likely to 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

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
DSRI 1.55871.00431.7880.65020.90510.70521.1843
GMI 0.98091.03820.61811.02591.03840.88151.0436
AQI 1.09141.0471.26240.80520.99361.00580.9925
SGI 1.20411.4131.18881.5851.43071.3421.1631
DEPI 0.98721.21021.26890.65290.80480.89570.9752
SGAI 1.08770.97242.17860.44440.91262.61660.9869
LVGI 0.89461.11121.16061.29560.92830.87710.9711
TATA 0.0266-0.0174-0.0227-0.0716-0.0849-0.1167-0.1242
M-score -1.61-2.16-2.01-2.72-2.55-3.30-2.72

Tata Motors, Ltd. Quarterly Data

Mar11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.5814
GMI 0.8801
AQI 1.0058
SGI 1.6279
DEPI 0.8957
SGAI 3.2281
LVGI 0.8771
TATA -0.1202
M-score -3.28
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