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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 -2.08 signals that the company is a manipulator.

TTM' s 10-Year Beneish M-Score Range
Min: -1.91   Max: -1.82
Current: 0

-1.91
-1.82

During the past 13 years, the highest Beneish M-Score of Tata Motors Ltd was -1.82. The lowest was -1.91. And the median was -1.87.


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 * 1.0753+0.528 * 0.9808+0.404 * 2.6803+0.892 * 1.1238+0.115 * 0.5378
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.9965+4.679 * -0.0079-0.327 * 1.0485
=-2.08

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $2,097 Mil.
Revenue was 10858.477445 + 11072.9375143 + 9945.25235806 + 10827.9884895 = $42,705 Mil.
Gross Profit was 4368.00441738 + 4239.75753942 + 3874.78160059 + 4176.10112376 = $16,659 Mil.
Total Current Assets was $15,901 Mil.
Total Assets was $37,542 Mil.
Property, Plant and Equipment(Net PPE) was $9,393 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,186 Mil.
Selling, General & Admin. Expense(SGA) was $11,830 Mil.
Total Current Liabilities was $15,887 Mil.
Long-Term Debt was $8,735 Mil.
Net Income was 252.840486232 + 408.293478729 + 540.392396416 + 903.667259825 = $2,105 Mil.
Non Operating Income was 451.624106721 + 1858.78473092 + 40.1986285174 + 51.4290210206 = $2,402 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $1,735 Mil.
Revenue was 10716.8635558 + 10334.2172105 + 8937.00980392 + 8013.26733352 = $38,001 Mil.
Gross Profit was 4107.33412089 + 3869.23524939 + 3497.44689542 + 3065.75945465 = $14,540 Mil.
Total Current Assets was $15,726 Mil.
Total Assets was $36,096 Mil.
Property, Plant and Equipment(Net PPE) was $15,977 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,805 Mil.
Selling, General & Admin. Expense(SGA) was $3,513 Mil.
Total Current Liabilities was $15,153 Mil.
Long-Term Debt was $7,426 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)
=(2096.56292763 / 42704.6558068) / (1734.95930958 / 38001.3579038)
=0.04909448 / 0.04565519
=1.0753

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)
=(4239.75753942 / 38001.3579038) / (4368.00441738 / 42704.6558068)
=0.382612 / 0.39008966
=0.9808

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 - (15900.8218564 + 9393.31631469) / 37542.0075063) / (1 - (15725.7547417 + 15976.799895) / 36096.0687799)
=0.32624439 / 0.12171725
=2.6803

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
=42704.6558068 / 38001.3579038
=1.1238

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))
=(1805.23785897 / (1805.23785897 + 15976.799895)) / (2185.94528601 / (2185.94528601 + 9393.31631469))
=0.1015203 / 0.18878106
=0.5378

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)
=(11830.1313399 / 42704.6558068) / (3513.21464556 / 38001.3579038)
=0.27702205 / 0.09244971
=2.9965

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)
=((8735.04533414 + 15887.4320788) / 37542.0075063) / ((7425.77443066 + 15153.2667192) / 36096.0687799)
=0.6558647 / 0.62552632
=1.0485

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
=(2105.1936212 - 2402.03648717 - 0) / 37542.0075063
=-0.0079

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 -2.08 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.14420.98371.39210.88151.05920.72520.95841.04720.84921.0657
GMI 0.98091.03820.61811.02590.97531.02750.95330.93720.94450.9816
AQI 1.09141.0471.26240.77791.0131.02110.98561.03970.93940.9678
SGI 1.19311.39581.21551.53281.44161.34611.2051.05051.10651.0936
DEPI 0.98721.21021.26890.65790.79850.8960.97520.92070.96060.9792
SGAI 1.08770.97242.17861.48210.27360.78863.29661.10261.03590.9949
LVGI 0.89461.11121.16061.29410.92950.87690.97330.97670.90451.0488
TATA 0.0266-0.0174-0.0227-0.0716-0.1455-0.0611-0.1246-0.1404-0.1798-0.1652
M-score -2.01-2.19-2.35-2.74-2.60-2.62-3.34-3.08-3.40-3.15

Tata Motors Ltd Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 110.798411.0753
GMI 0.9690.90840.94130.9850.9808
AQI 0.42960.35490.78262.22962.6803
SGI 1.02981.10291.17241.13281.1238
DEPI 9.46959.85021.03965.48430.5378
SGAI 0.36551.05261.05272.54412.9965
LVGI 0.77040.75420.96460.97211.0485
TATA 0.05730.06380.07360.0151-0.0079
M-score -1.27-1.31-2.28-1.54-2.08
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