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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: -2.44
Current: 0

-170.75
-2.44

During the past 14 years, the highest Beneish M-Score of Tata Motors Ltd was -2.44. The lowest was -170.75. And the median was -2.62.


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 (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 $2,072 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 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $0 Mil.
Revenue was 10334.2172105 + 8937.00980392 + 8013.26733352 + 10290.0685372 = $37,575 Mil.
Gross Profit was 3869.23524939 + 3497.44689542 + 3065.75945465 + 3826.06067288 = $14,259 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 $1,722 Mil.
Selling, General & Admin. Expense(SGA) was $3,337 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)
=(1836.14774085 / 42563.0419176) / (0 / 37574.5628852)
=0.04313949 / 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)
=(3874.78160059 / 37574.5628852) / (4239.75753942 / 42563.0419176)
=0.37947221 / 0.38526322
=

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 - (0 + 0) / 0)
=0.32846174 /
=

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 / 37574.5628852
=

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))
=(1722.22132659 / (1722.22132659 + 0)) / (2071.78139065 / (2071.78139065 + 9290.47747384))
=1 / 0.18233887
=

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) / (3336.8837971 / 37574.5628852)
=0.22593783 / 0.08880699
=

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) / ((0 + 0) / 0)
=0.62115299 /
=

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 - 0) / 37753.0136141
=0.0151

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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.14420.98371.39210.88151.05920.72520.95841.04720.84921.0223
GMI 0.98091.03820.61811.02590.97531.02750.95330.93720.94450.9783
AQI 1.09141.0471.26240.77791.0131.02110.98561.03970.93940.3043
SGI 1.19311.39581.21551.53281.44161.34611.2051.05051.10651.0947
DEPI 0.98721.21021.26890.65790.79850.8960.97520.92070.96061.7155
SGAI 1.08770.97242.17861.48210.27360.78863.29661.10261.03590.3448
LVGI 0.89461.11121.16061.29410.92950.87690.97330.97670.90451.0476
TATA 0.0266-0.0174-0.0227-0.0716-0.1455-0.0611-0.1246-0.1404-0.17980.0556
M-score -2.01-2.19-2.35-2.74-2.60-2.62-3.34-3.08-3.40-2.23

Tata Motors Ltd Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 110.798411.0337
GMI 0.9690.90840.94130.9850.9821
AQI 0.42960.35490.78262.22960.8426
SGI 1.02981.10291.17241.13281.1226
DEPI 9.46959.85021.03965.48430.9409
SGAI 0.36551.05261.05272.54412.4628
LVGI 0.77040.75420.96460.97211.0473
TATA 0.05730.06380.07360.01510.0043
M-score -1.27-1.31-2.28-1.54-2.67
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