Switch to:

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1367

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1372

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1367

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1372

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1367

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1372

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1367

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1372

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1367

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1372

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1623

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1644
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: -2.59
Current: 0

-170.75
-2.59

During the past 13 years, the highest Beneish M-Score of Tata Motors Ltd was -2.59. The lowest was -170.75. And the median was -3.28.


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 (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $1,882 Mil.
Revenue was 9134.81228669 + 15866.0150754 + 8777.59472817 + 9003.37198068 = $42,782 Mil.
Gross Profit was 3505.11945392 + 5995.21943049 + 3347.61120264 + 3523.41706924 = $16,371 Mil.
Total Current Assets was $12,094 Mil.
Total Assets was $27,196 Mil.
Property, Plant and Equipment(Net PPE) was $5,671 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,551 Mil.
Selling, General & Admin. Expense(SGA) was $11,384 Mil.
Total Current Liabilities was $9,749 Mil.
Long-Term Debt was $3,128 Mil.
Net Income was 1182.59385666 + -197.197654941 + 1019.7693575 + 560.608695652 = $2,566 Mil.
Non Operating Income was 247.440273038 + 2316.01842546 + 186.161449753 + -6.60869565217 = $2,743 Mil.
Cash Flow from Operations was 1058.02047782 + 2795.33500838 + 1563.42668863 + 0 = $5,417 Mil.
Accounts Receivable was $0 Mil.
Revenue was 6216.99544765 + 10373.0199081 + 6076.67731629 + 8109.18971061 = $30,776 Mil.
Gross Profit was 2438.54324734 + 3856.90352221 + 2228.43450479 + 2929.88102894 = $11,454 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 $1,354 Mil.
Selling, General & Admin. Expense(SGA) was $2,683 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)
=(1882.25255973 / 42781.7940709) / (0 / 30775.8823827)
=0.04399658 / 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)
=(5995.21943049 / 30775.8823827) / (3505.11945392 / 42781.7940709)
=0.37216682 / 0.38267136
=

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 - (12093.8566553 + 5670.64846416) / 27196.2457338) / (1 - (0 + 0) / 0)
=0.34680304 / 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
=42781.7940709 / 30775.8823827
=

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))
=(1353.58037849 / (1353.58037849 + 0)) / (1550.5689025 / (1550.5689025 + 5670.64846416))
=1 / 0.21472403
=

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)
=(11383.5065284 / 42781.7940709) / (2683.34384722 / 30775.8823827)
=0.26608296 / 0.08718983
=

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)
=((3127.98634812 + 9749.14675768) / 27196.2457338) / ((0 + 0) / 0)
=0.47348936 / 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
=(2565.77425486 - 2743.0114526 - 5416.78217482) / 27196.2457338
=-0.2057

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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 1.55871.00431.7880.65020.90510.70521.18430.95210.8672
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 -1.61-2.16-2.01-2.72-2.55-3.30-2.72-3.17-3.35

Tata Motors Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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