Tri-Tech Holding (FRA:TTW) Beneish M-Score : -3.76 (As of Apr. 30, 2024)

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What is Tri-Tech Holding 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.

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

FRA:TTW' s Beneish M-Score Range Over the Past 10 Years
Min: -3.76 Med: -2.43 Max: 0.6
Current: -3.76

During the past 8 years, the highest Beneish M-Score of Tri-Tech Holding was 0.60. The lowest was -3.76. And the median was -2.43.

Tri-Tech Holding Beneish M-Score Historical Data

The historical data trend for Tri-Tech Holding'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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Tri-Tech Holding Beneish M-Score Chart

Tri-Tech Holding Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Beneish M-Score

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0.61

-0.74

-2.43

-2.62

-3.76

Tri-Tech Holding Quarterly Data
	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Dec14
Beneish M-Score	Get a 7-Day Free Trial															-2.68	-1.70	-2.23	-2.62	-3.76

Competitive Comparison of Tri-Tech Holding's Beneish M-Score

For the Waste Management subindustry, Tri-Tech Holding'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.

Tri-Tech Holding's Beneish M-Score Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Tri-Tech Holding's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tri-Tech Holding's Beneish M-Score falls into.

Tri-Tech Holding 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 Tri-Tech Holding 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 * 1.2507

0.528 * 1.2008

0.404 * 0.8667

0.892 * 0.6318

0.115 * 0.9438

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5671

4.679 * -0.08806

0.327 * 1.0167

-3.05

This Year (Dec13) TTM:

Last Year (Dec12) TTM:

Total Receivables was €28.58 Mil.
Revenue was 3.49 + 6.808 + 12.344 + 8.09 = €30.73 Mil.
Gross Profit was -0.142 + 1.755 + 2.749 + 1.803 = €6.17 Mil.
Total Current Assets was €64.50 Mil.
Total Assets was €99.86 Mil.
Property, Plant and Equipment(Net PPE) was €1.14 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.89 Mil.
Selling, General, & Admin. Expense(SGA) was €13.81 Mil.
Total Current Liabilities was €47.34 Mil.
Long-Term Debt & Capital Lease Obligation was €0.01 Mil.
Net Income was -8.031 + -0.921 + -0.456 + -0.848 = €-10.26 Mil.
Non Operating Income was -2.779 + 1.276 + -0.014 + 0.916 = €-0.60 Mil.
Cash Flow from Operations was -2.153 + 7.722 + -5.895 + -0.535 = €-0.86 Mil.

Total Receivables was €36.17 Mil.
Revenue was 1.649 + 14.082 + 18.364 + 14.55 = €48.65 Mil.
Gross Profit was -0.494 + 3.62 + 4.642 + 3.95 = €11.72 Mil.
Total Current Assets was €70.84 Mil.
Total Assets was €119.39 Mil.
Property, Plant and Equipment(Net PPE) was €1.35 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.95 Mil.
Selling, General, & Admin. Expense(SGA) was €13.95 Mil.
Total Current Liabilities was €49.62 Mil.
Long-Term Debt & Capital Lease Obligation was €6.06 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)
	=	(28.578 / 30.732)	/	(36.167 / 48.645)
	=	0.92991	/	0.743489
	=	1.2507

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)
	=	(11.718 / 48.645)	/	(6.165 / 30.732)
	=	0.240888	/	0.200605
	=	1.2008

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 - (64.504 + 1.14) / 99.864)	/	(1 - (70.839 + 1.346) / 119.389)
	=	0.342666	/	0.39538
	=	0.8667

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
	=	30.732	/	48.645
	=	0.6318

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))
	=	(0.946 / (0.946 + 1.346))	/	(0.886 / (0.886 + 1.14))
	=	0.41274	/	0.437315
	=	0.9438

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)
	=	(13.814 / 30.732)	/	(13.953 / 48.645)
	=	0.449499	/	0.286833
	=	1.5671

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)
	=	((0.007 + 47.344) / 99.864)	/	((6.06 + 49.621) / 119.389)
	=	0.474155	/	0.466383
	=	1.0167

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
	=	(-10.256 - -0.601	-	-0.861)	/	99.864
	=	-0.08806

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.

Tri-Tech Holding has a M-score of -3.05 suggests that the company is unlikely to be a manipulator.

Tri-Tech Holding Beneish M-Score Related Terms

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Tri-Tech Holding (FRA:TTW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Tri-Tech Holding Inc (FRA:TTW) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.101 Jingshun Road, Floor 16, Tower B, Renji Plaza, Chaoyang District, Beijing, CHN, 100102

Website

http://www.tri-tech.cn

Tri-Tech Holding Inc provides consulting, engineering, procurement, construction, and technical services. It operates through the Water, Wastewater Treatment, and Municipal Infrastructure; and Industrial Pollution Control and Safety segments. The Water, Wastewater Treatment, and Municipal Infrastructure segment focus on the municipal water supply and distribution, wastewater treatment, and gray water recycling. The Industrial Pollution Control and Safety segment comprises of activities such as zero liquid discharge, multi-effect evaporation, multi-flash evaporation, as well as emissions control. The company serves the government, state-owned entities, and commercial clients. It has business presence across China, India, Middle East and the United States.

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