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.
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Terex Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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|
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-2.73 |
-2.74 |
-2.27 |
-2.34 |
-2.41 |
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Terex 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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-2.34 |
-2.28 |
-2.21 |
-2.25 |
-2.41 |
Competitive Comparison
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 Beneish M-Score Distribution
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 * 0.858 | + | 0.528 * 0.8634 | + | 0.404 * 0.9998 | + | 0.892 * 1.1661 | + | 0.115 * 1.022 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0265 | + | 4.679 * 0.016568 | - | 0.327 * 0.8466 |
| = | -2.41 |
* 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 $548 Mil.
Revenue was 1222.6 + 1290.1 + 1403.1 + 1235.7 = $5,152 Mil.
Gross Profit was 262.5 + 292.5 + 342.9 + 278.7 = $1,177 Mil.
Total Current Assets was $2,245 Mil.
Total Assets was $3,616 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.
Net Income was 126.9 + 119.2 + 159.4 + 112.6 = $518 Mil.
Non Operating Income was 3.6 + 0.7 + -3.8 + -1.6 = $-1 Mil.
Cash Flow from Operations was 190.7 + 138.8 + 120.7 + 9.1 = $459 Mil.
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Total Receivables was $548 Mil.
Revenue was 1217.6 + 1120.5 + 1077.1 + 1002.5 = $4,418 Mil.
Gross Profit was 235.4 + 237.1 + 212.9 + 185.8 = $871 Mil.
Total Current Assets was $1,962 Mil.
Total Assets was $3,118 Mil.
Property, Plant and Equipment(Net PPE) was $466 Mil.
Depreciation, Depletion and Amortization(DDA) was $47 Mil.
Selling, General, & Admin. Expense(SGA) was $451 Mil.
Total Current Liabilities was $999 Mil.
Long-Term Debt & Capital Lease Obligation was $774 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) |
| = | (547.8 / 5151.5) | / | (547.5 / 4417.7) |
| = | 0.106338 | / | 0.123933 |
| | = | 0.858 |
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) |
| = | (871.2 / 4417.7) | / | (1176.6 / 5151.5) |
| = | 0.197207 | / | 0.228399 |
| | = | 0.8634 |
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 - (2245.2 + 569.8) / 3615.5) | / | (1 - (1962 + 465.6) / 3118.1) |
| = | 0.221408 | / | 0.221449 |
| | = | 0.9998 |
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 |
| = | 5151.5 | / | 4417.7 |
| | = | 1.1661 |
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)) |
| = | (47.2 / (47.2 + 465.6)) | / | (56.4 / (56.4 + 569.8)) |
| = | 0.092044 | / | 0.090067 |
| | = | 1.022 |
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) |
| = | (540.1 / 5151.5) | / | (451.2 / 4417.7) |
| = | 0.104843 | / | 0.102135 |
| | = | 1.0265 |
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) |
| = | ((620.4 + 1119.2) / 3615.5) | / | ((773.6 + 998.6) / 3118.1) |
| = | 0.481151 | / | 0.568359 |
| | = | 0.8466 |
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 |
| = | (518.1 - -1.1 | - | 459.3) | / | 3615.5 |
| | = | 0.016568 |
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 -2.41 suggests that the company is unlikely to be a manipulator.
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