Triumph Group (FRA:TG7) Beneish M-Score : -0.57 (As of Dec. 15, 2024)

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What is Triumph Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -0.57 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Triumph Group's Beneish M-Score or its related term are showing as below:

FRA:TG7' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28 Med: -2.47 Max: -0.52
Current: -0.57

During the past 13 years, the highest Beneish M-Score of Triumph Group was -0.52. The lowest was -3.28. And the median was -2.47.

Triumph Group Beneish M-Score Historical Data

The historical data trend for Triumph Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Triumph Group Beneish M-Score Chart

Triumph Group Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.93

-2.99

-2.22

-2.48

-1.03

Triumph Group Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.40	-2.74	-1.03	-0.63	-0.57

Competitive Comparison of Triumph Group's Beneish M-Score

For the Aerospace & Defense subindustry, Triumph Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Triumph Group's Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Triumph Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Triumph Group's Beneish M-Score falls into.

Triumph Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Triumph Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.8267

0.528 * 0.986

0.404 * 1.0924

0.892 * 1.0472

0.115 * 0.9262

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9731

4.679 * 0.407895

0.327 * 0.7107

-0.57

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €222 Mil.
Revenue was 259.033 + 261.064 + 329.9 + 261.304 = €1,111 Mil.
Gross Profit was 85.238 + 68.689 + 99.478 + 64.174 = €318 Mil.
Total Current Assets was €686 Mil.
Total Assets was €1,362 Mil.
Property, Plant and Equipment(Net PPE) was €134 Mil.
Depreciation, Depletion and Amortization(DDA) was €29 Mil.
Selling, General, & Admin. Expense(SGA) was €172 Mil.
Total Current Liabilities was €277 Mil.
Long-Term Debt & Capital Lease Obligation was €863 Mil.
Net Income was 10.692 + -13.091 + 503.925 + -14.582 = €487 Mil.
Non Operating Income was -4.536 + -14.383 + -16.461 + 1.672 = €-34 Mil.
Cash Flow from Operations was -34.599 + -97.106 + 71.501 + 25.373 = €-35 Mil.

Total Receivables was €257 Mil.
Revenue was 266.743 + 243.509 + 303.978 + 247.009 = €1,061 Mil.
Gross Profit was 70.1 + 64.534 + 96.748 + 67.636 = €299 Mil.
Total Current Assets was €841 Mil.
Total Assets was €1,568 Mil.
Property, Plant and Equipment(Net PPE) was €156 Mil.
Depreciation, Depletion and Amortization(DDA) was €31 Mil.
Selling, General, & Admin. Expense(SGA) was €169 Mil.
Total Current Liabilities was €295 Mil.
Long-Term Debt & Capital Lease Obligation was €1,552 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(222.489 / 1111.301)	/	(256.999 / 1061.239)
	=	0.200206	/	0.242169
	=	0.8267

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)
	=	(299.018 / 1061.239)	/	(317.579 / 1111.301)
	=	0.281763	/	0.285772
	=	0.986

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (685.944 + 134.077) / 1361.83)	/	(1 - (840.674 + 156.104) / 1567.725)
	=	0.397854	/	0.364188
	=	1.0924

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	1111.301	/	1061.239
	=	1.0472

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(31.076 / (31.076 + 156.104))	/	(29.284 / (29.284 + 134.077))
	=	0.166022	/	0.179259
	=	0.9262

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(172.411 / 1111.301)	/	(169.203 / 1061.239)
	=	0.155143	/	0.159439
	=	0.9731

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((862.816 + 277.168) / 1361.83)	/	((1551.662 + 294.805) / 1567.725)
	=	0.837097	/	1.1778
	=	0.7107

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
	=	(486.944 - -33.708	-	-34.831)	/	1361.83
	=	0.407895

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Triumph Group has a M-score of -0.57 signals that the company is likely to be a manipulator.

Triumph Group Beneish M-Score Related Terms

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Triumph Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Triumph Group Inc (FRA:TG7) » Definitions » Beneish M-Score

Comparable Companies

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Traded in Other Exchanges

TGI:USA

Address

555 E Lancaster Avenue, Suite 400, Radnor, PA, USA, 19087

Website

https://www.triumphgroup.com

Triumph Group Inc designs and manufactures a broad portfolio of aerostructures, aircraft components, and systems for the aviation industry. It serves a customer base of players in the commercial, business, and military markets. The company operates under two operating segments: Systems and Support, which derives key revenue and designs, develops, and supports proprietary components; and Interiors, which supplies commercial and regional manufacturers with aircraft interior systems.

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