Trane Technologies Beneish M-Score Historical Data
The historical data trend for Trane Technologies'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.
Trane Technologies Beneish M-Score Chart
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Trane Technologies Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.87 |
-2.56 |
-2.44 |
-2.26 |
-2.52 |
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Trane Technologies Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.26 |
-2.37 |
-2.32 |
-2.45 |
-2.52 |
Competitive Comparison of Trane Technologies's Beneish M-Score
For the Building Products & Equipment subindustry, Trane Technologies'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.
Trane Technologies's Beneish M-Score Distribution in the Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Beneish M-Score falls into.
Trane Technologies 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 Trane Technologies 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 * 0.9621 | + | 0.528 * 0.937 | + | 0.404 * 0.9859 | + | 0.892 * 1.1054 | + | 0.115 * 1.0599 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.053 | + | 4.679 * -0.01331 | - | 0.327 * 0.9872 |
| = | -2.52 |
* 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.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $2,957 Mil.
Revenue was 4424.1 + 4882.9 + 4704.7 + 3665.8 = $17,678 Mil.
Gross Profit was 1471.3 + 1658.1 + 1584.4 + 1143.5 = $5,857 Mil.
Total Current Assets was $6,870 Mil.
Total Assets was $19,392 Mil.
Property, Plant and Equipment(Net PPE) was $1,772 Mil.
Depreciation, Depletion and Amortization(DDA) was $348 Mil.
Selling, General, & Admin. Expense(SGA) was $2,963 Mil.
Total Current Liabilities was $6,054 Mil.
Long-Term Debt & Capital Lease Obligation was $3,978 Mil.
Net Income was 504.3 + 626.3 + 586.2 + 307.1 = $2,024 Mil.
Non Operating Income was -19.7 + -13.6 + -60.5 + -13.8 = $-108 Mil.
Cash Flow from Operations was 934.8 + 922.3 + 524 + 8.5 = $2,390 Mil.
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Total Receivables was $2,780 Mil.
Revenue was 4073.8 + 4371.9 + 4190.4 + 3355.5 = $15,992 Mil.
Gross Profit was 1219.5 + 1432.8 + 1323.4 + 989 = $4,965 Mil.
Total Current Assets was $6,379 Mil.
Total Assets was $18,082 Mil.
Property, Plant and Equipment(Net PPE) was $1,536 Mil.
Depreciation, Depletion and Amortization(DDA) was $324 Mil.
Selling, General, & Admin. Expense(SGA) was $2,546 Mil.
Total Current Liabilities was $5,687 Mil.
Long-Term Debt & Capital Lease Obligation was $3,788 Mil.
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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) |
| = | (2956.8 / 17677.5) | / | (2780.1 / 15991.6) |
| = | 0.167263 | / | 0.173848 |
| | = | 0.9621 |
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) |
| = | (4964.7 / 15991.6) | / | (5857.3 / 17677.5) |
| = | 0.310457 | / | 0.331342 |
| | = | 0.937 |
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 - (6869.9 + 1772.2) / 19391.9) | / | (1 - (6379.2 + 1536.1) / 18081.6) |
| = | 0.554345 | / | 0.562246 |
| | = | 0.9859 |
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 |
| = | 17677.5 | / | 15991.6 |
| | = | 1.1054 |
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)) |
| = | (323.6 / (323.6 + 1536.1)) | / | (348.1 / (348.1 + 1772.2)) |
| = | 0.174007 | / | 0.164175 |
| | = | 1.0599 |
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) |
| = | (2963.3 / 17677.5) | / | (2545.8 / 15991.6) |
| = | 0.167631 | / | 0.159196 |
| | = | 1.053 |
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) |
| = | ((3977.9 + 6053.5) / 19391.9) | / | ((3788.3 + 5686.8) / 18081.6) |
| = | 0.517298 | / | 0.524019 |
| | = | 0.9872 |
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 |
| = | (2023.9 - -107.6 | - | 2389.6) | / | 19391.9 |
| | = | -0.01331 |
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.
Trane Technologies has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.
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