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Terex (TEX) Beneish M-Score : -1.89 (As of Mar. 16, 2025)


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What is Terex 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.

Good Sign:

Beneish M-Score -1.89 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TEX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95   Med: -2.53   Max: -1.89
Current: -1.89

During the past 13 years, the highest Beneish M-Score of Terex was -1.89. The lowest was -2.95. And the median was -2.53.


Terex Beneish M-Score Historical Data

The historical data trend for Terex'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.

Terex Beneish M-Score Chart

Terex Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.74 -2.27 -2.34 -2.41 -1.89

Terex Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Beneish M-Score Get a 7-Day Free Trial 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 -2.41 -2.30 -2.24 -2.20 -1.89

Competitive Comparison of Terex's Beneish M-Score

For the Farm & Heavy Construction Machinery subindustry, Terex'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.


Terex's Beneish M-Score Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Terex's Beneish M-Score distribution charts can be found below:

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



Terex 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 Terex 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 * 1.179+0.528 * 1.0967+0.404 * 2.1261+0.892 * 0.9952+0.115 * 0.8684
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0072+4.679 * 0.009075-0.327 * 1.3253
=-1.89

* 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 (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was $643 Mil.
Revenue was 1241 + 1212 + 1381.7 + 1292.5 = $5,127 Mil.
Gross Profit was 197 + 245 + 328.4 + 297.3 = $1,068 Mil.
Total Current Assets was $2,320 Mil.
Total Assets was $5,730 Mil.
Property, Plant and Equipment(Net PPE) was $714 Mil.
Depreciation, Depletion and Amortization(DDA) was $82 Mil.
Selling, General, & Admin. Expense(SGA) was $541 Mil.
Total Current Liabilities was $1,073 Mil.
Long-Term Debt & Capital Lease Obligation was $2,580 Mil.
Net Income was -2 + 88 + 140.7 + 108.5 = $335 Mil.
Non Operating Income was -14 + -13 + -5.4 + -10.4 = $-43 Mil.
Cash Flow from Operations was 177 + 116.4 + 66.5 + -33.9 = $326 Mil.
Total Receivables was $548 Mil.
Revenue was 1223 + 1290 + 1403.1 + 1235.7 = $5,152 Mil.
Gross Profit was 263 + 292 + 342.9 + 278.7 = $1,177 Mil.
Total Current Assets was $2,245 Mil.
Total Assets was $3,615 Mil.
Property, Plant and Equipment(Net PPE) was $570 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General, & Admin. Expense(SGA) was $540 Mil.
Total Current Liabilities was $1,119 Mil.
Long-Term Debt & Capital Lease Obligation was $620 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)
=(643 / 5127.2) / (548 / 5151.8)
=0.12541 / 0.106371
=1.179

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)
=(1176.6 / 5151.8) / (1067.7 / 5127.2)
=0.228386 / 0.208242
=1.0967

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 - (2320 + 714) / 5730) / (1 - (2245 + 570) / 3615)
=0.470506 / 0.2213
=2.1261

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
=5127.2 / 5151.8
=0.9952

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))
=(56 / (56 + 570)) / (82 / (82 + 714))
=0.089457 / 0.103015
=0.8684

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)
=(541.3 / 5127.2) / (540 / 5151.8)
=0.105574 / 0.104818
=1.0072

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)
=((2580 + 1073) / 5730) / ((620 + 1119) / 3615)
=0.637522 / 0.481051
=1.3253

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
=(335.2 - -42.8 - 326) / 5730
=0.009075

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.

Terex has a M-score of -1.89 suggests that the company is unlikely to be a manipulator.


Terex Business Description

Traded in Other Exchanges
Address
301 Merritt 7, 4th Floor, Norwalk, CT, USA, 06850
Terex Corp is a manufacturer of materials processing machinery, waste and recycling solutions, mobile elevating work platforms (MEWPs), and equipment for the electric utility industry. The company designs builds, and supports products used in maintenance, manufacturing, energy, waste and recycling, minerals and materials management, construction, and the entertainment industry. The products are manufactured in North America, Europe, and Asia Pacific and sold all over the world. The company reports business in the following segments: (i) Materials Processing, (ii) Aerial Work Platforms, and (iii) Environmental Solutions Group.
Executives
David A Sachs director C/O TEREX CORP, 200 NYALA FARM ROAD, WESTPORT CT 06880
Simon Meester officer: President - Genie C/O TEREX CORP, 45 GLOVER AVENUE, 4TH FLOOR, NORWALK CT 06850
Kieran Hegarty officer: President, Materials Processin C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880
Andra Rush director C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880
Scott Posner officer: Senior V.P., Gen Counsel Sec. C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880
Stephen Johnston officer: Chief Accounting Officer C/O TEREX CORP, 200 NYALA FARM ROAD, WESTPOT CT 06880
Amy George officer: Senior V.P. Human Resources C/O TEREX CORPORATION, 200 NYALA FARMS ROAD, WESTPORT CT 06880
Garrison John L Jr officer: CEO AND PRESIDENT C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880
Julie A Beck officer: Senior Vice President, Finance ONE INVACARE WAY, ELYRIA OH 44035
Oluseun Salami director C/O TEREX CORPORATION, 45 GLOVER AVENUE, NORWALK CT 06850
Paula H Cholmondeley director 221 W PHILADELPHIA ST, SUITE 60W, YORK PA 17401-2991
John D Sheehan officer: Senior Vice President, CFO 5725 DELPHI DRIVE, TROY MI 48098
Mark I Clair officer: VP Controller & CAO C/O HEXCEL CORPORATION, 281 TRESSER BOULEVARD, STAMFORD CT 06901
Christopher Rossi director C/O KENNAMETAL INC., 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
Matthew Fearon officer: President Terex AWP C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880