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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: -2.48
Current: 0

-170.75
-2.48

During the past 12 years, the highest Beneish M-Score of Tata Motors Ltd was -2.48. 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

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
DSRI 1.55871.00431.7880.65020.90510.70521.18430.9521
GMI 0.98091.03820.61811.02591.03840.88151.04360.9274
AQI 1.09141.0471.26240.80520.99361.00580.99251.0071
SGI 1.20411.4131.18881.5851.43071.3421.16311.0724
DEPI 0.98721.21021.26890.65290.80480.89570.97520.9392
SGAI 1.08770.97242.17860.44440.91262.61660.98691.1219
LVGI 0.89461.11121.16061.29560.92830.87710.97110.983
TATA 0.0266-0.0174-0.0227-0.0716-0.0849-0.1167-0.1242-0.1393
M-score -1.61-2.16-2.01-2.72-2.55-3.30-2.72-3.17

Tata Motors Ltd Quarterly Data

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