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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 -3.62 suggests that the company is not a manipulator.

TTM' s 10-Year Beneish M-Score Range
Min: -170.75   Max: -2.39
Current: 0

-170.75
-2.39

During the past 13 years, the highest Beneish M-Score of Tata Motors Ltd was -2.39. 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 * 1.1745+0.528 * 0.9861+0.404 * 0.9622+0.892 * 1.1328+0.115 * 1.7441
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.5412+4.679 * -0.2458-0.327 * 1.1978
=-3.62

* 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 $1,836 Mil.
Revenue was 11072.9375143 + 9945.25235806 + 10827.9884895 + 10716.8635558 = $42,563 Mil.
Gross Profit was 4239.75753942 + 3874.78160059 + 4176.10112376 + 4107.33412089 = $16,398 Mil.
Total Current Assets was $16,062 Mil.
Total Assets was $37,753 Mil.
Property, Plant and Equipment(Net PPE) was $9,290 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,832 Mil.
Selling, General & Admin. Expense(SGA) was $9,617 Mil.
Total Current Liabilities was $14,789 Mil.
Long-Term Debt was $8,661 Mil.
Net Income was 408.293478729 + 540.392396416 + 903.667259825 + 642.890660891 = $2,495 Mil.
Non Operating Income was 1858.78473092 + 40.1986285174 + 51.4290210206 + -25.2215002953 = $1,925 Mil.
Cash Flow from Operations was 3954.28587831 + 1952.53272707 + 1061.68224894 + 2880.35702566 = $9,849 Mil.
Accounts Receivable was $1,380 Mil.
Revenue was 10334.2172105 + 8934.5729638 + 8015.29014799 + 10290.0685372 = $37,574 Mil.
Gross Profit was 3869.23524939 + 3504.39133987 + 3074.93833927 + 3826.06067288 = $14,275 Mil.
Total Current Assets was $11,275 Mil.
Total Assets was $24,488 Mil.
Property, Plant and Equipment(Net PPE) was $4,854 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,339 Mil.
Selling, General & Admin. Expense(SGA) was $3,341 Mil.
Total Current Liabilities was $9,064 Mil.
Long-Term Debt was $3,636 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)
=(1836.14774085 / 42563.0419176) / (1380.06809468 / 37574.1488595)
=0.04313949 / 0.03672919
=1.1745

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)
=(3874.78160059 / 37574.1488595) / (4239.75753942 / 42563.0419176)
=0.37990549 / 0.38526322
=0.9861

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 - (16062.1157732 + 9290.47747384) / 37753.0136141) / (1 - (11274.6781155 + 4854.14630082) / 24488.3766158)
=0.32846174 / 0.34136817
=0.9622

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
=42563.0419176 / 37574.1488595
=1.1328

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))
=(3338.5384495 / (3338.5384495 + 4854.14630082)) / (2832.40503201 / (2832.40503201 + 9290.47747384))
=0.40750237 / 0.23364122
=1.7441

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)
=(9616.60119939 / 42563.0419176) / (3340.75730017 / 37574.1488595)
=0.22593783 / 0.08891106
=2.5412

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)
=((8661.39559954 + 14789.0015644) / 37753.0136141) / ((3635.66324764 + 9063.60128456) / 24488.3766158)
=0.62115299 / 0.51858336
=1.1978

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
=(2495.24379586 - 1925.19088016 - 9848.85787998) / 37753.0136141
=-0.2458

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 -3.62 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 1.19311.39581.21551.53281.44161.34611.2051.05221.1047
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 -2.01-2.19-2.35-2.55-2.40-3.28-2.89-3.09-3.39

Tata Motors Ltd Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1110.79841.1745
GMI 0.98681.01790.94710.98090.9861
AQI 0.42310.98040.34960.78260.9622
SGI 1.02971.09111.10291.17241.1328
DEPI 6.96232.4547.50191.12291.7441
SGAI 0.36830.35611.05381.05142.5412
LVGI 0.77050.62530.75430.96461.1978
TATA -0.1448-0.2774-0.153-0.1653-0.2458
M-score -2.50-3.29-2.58-3.37-3.62
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