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TE Connectivity (NYSE:TEL) Beneish M-Score

: -2.50 (As of Today)
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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.

Good Sign:

Beneish M-Score -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TEL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02   Med: -2.52   Max: -2.07
Current: -2.5

During the past 13 years, the highest Beneish M-Score of TE Connectivity was -2.07. The lowest was -3.02. And the median was -2.52.


TE Connectivity Beneish M-Score Historical Data

The historical data trend for TE Connectivity'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.

* Premium members only.

TE Connectivity Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.29 -2.52 -2.71 -2.35 -2.46

TE Connectivity Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.37 -2.37 -2.46 -2.44 -2.50

Competitive Comparison

For the Electronic Components subindustry, TE Connectivity'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.

   

TE Connectivity Beneish M-Score Distribution

For the Hardware industry and Technology sector, TE Connectivity's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where TE Connectivity's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



TE Connectivity 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 TE Connectivity 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 * 0.935+0.528 * 1.0522+0.404 * 0.9997+0.892 * 1.0626+0.115 * 0.9939
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0045+4.679 * -0.010377-0.327 * 0.9772
=-2.50

* 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 (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was $3,048 Mil.
Revenue was 4160 + 3841 + 4359 + 4097 = $16,457 Mil.
Gross Profit was 1284 + 1187 + 1349 + 1328 = $5,148 Mil.
Total Current Assets was $7,439 Mil.
Total Assets was $21,490 Mil.
Property, Plant and Equipment(Net PPE) was $3,818 Mil.
Depreciation, Depletion and Amortization(DDA) was $787 Mil.
Selling, General, & Admin. Expense(SGA) was $1,632 Mil.
Total Current Liabilities was $4,393 Mil.
Long-Term Debt & Capital Lease Obligation was $3,916 Mil.
Net Income was 433 + 397 + 708 + 594 = $2,132 Mil.
Non Operating Income was -131 + -125 + -94 + -33 = $-383 Mil.
Cash Flow from Operations was 634 + 581 + 944 + 579 = $2,738 Mil.
Total Receivables was $3,068 Mil.
Revenue was 4007 + 3818 + 3818 + 3845 = $15,488 Mil.
Gross Profit was 1337 + 1230 + 1263 + 1268 = $5,098 Mil.
Total Current Assets was $7,417 Mil.
Total Assets was $21,451 Mil.
Property, Plant and Equipment(Net PPE) was $3,817 Mil.
Depreciation, Depletion and Amortization(DDA) was $781 Mil.
Selling, General, & Admin. Expense(SGA) was $1,529 Mil.
Total Current Liabilities was $5,046 Mil.
Long-Term Debt & Capital Lease Obligation was $3,441 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)
=(3048 / 16457) / (3068 / 15488)
=0.18521 / 0.198089
=0.935

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)
=(5098 / 15488) / (5148 / 16457)
=0.329158 / 0.312815
=1.0522

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 - (7439 + 3818) / 21490) / (1 - (7417 + 3817) / 21451)
=0.476175 / 0.476295
=0.9997

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
=16457 / 15488
=1.0626

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))
=(781 / (781 + 3817)) / (787 / (787 + 3818))
=0.169856 / 0.170901
=0.9939

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)
=(1632 / 16457) / (1529 / 15488)
=0.099168 / 0.098722
=1.0045

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)
=((3916 + 4393) / 21490) / ((3441 + 5046) / 21451)
=0.386645 / 0.395646
=0.9772

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
=(2132 - -383 - 2738) / 21490
=-0.010377

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.

TE Connectivity has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.


TE Connectivity Beneish M-Score Related Terms

Thank you for viewing the detailed overview of TE Connectivity's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


TE Connectivity (NYSE:TEL) Business Description

TE Connectivity logo
Traded in Other Exchanges
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Syaru Shirley Lin director
Aaron Kyle Stucki officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE, BERWYN PA 19312
Lynn A Dugle director 4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Dawn C Willoughby director 1221 BROADWAY, OAKLAND CA 94612
Kevin N Rock officer: President, Industrial Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
David M Kerko director C/O KKR, 9 WEST 57TH STREET, 41ST FLOOR, NEW YORK NY 10019
Shadrak W Kroeger officer: Pres., Communications Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar director ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Heath A Mitts officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Tim Murphy officer: SVP & CHRO 1050 WESTLAKES DRIVE, BERWYN PA 19312
Mark Trudeau director COVIDIEN PLC, 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Carol Anthony Davidson director
Laura Wright director 2702 LOVE FIELD DRIVE, P.O. BOX 36611, DALLAS TX 75235-1611
John S Jenkins officer: EVP & General Counsel 1050 WESTLAKES DRIVE, BERWYN PA 19312
Bradley Alan Gambill officer: SVP, Strategy & Business Dev. 1050 WESTLAKES DRIVE, BERWYN PA 19312

TE Connectivity (NYSE:TEL) Headlines

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