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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 -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Trane Technologies's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Trane Technologies was -2.17. The lowest was -2.94. And the median was -2.51.
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 Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Beneish M-Score | Get a 7-Day Free Trial | -2.87 | -2.56 | -2.44 | -2.26 | -2.52 |
Trane Technologies Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Beneish M-Score | Get a 7-Day Free Trial | -2.45 | -2.52 | -2.51 | -2.59 | - |
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.
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.
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 * 0.9651 | + | 0.528 * 0.9168 | + | 0.404 * 0.9392 | + | 0.892 * 1.1189 | + | 0.115 * 1.0394 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.0951 | + | 4.679 * -0.031148 | - | 0.327 * 1.0215 | |||||||
= | -2.64 |
* 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 (Sep24) TTM: | Last Year (Sep23) TTM: |
Total Receivables was $3,393 Mil. Revenue was 5441.2 + 5307.4 + 4215.5 + 4424.1 = $19,388 Mil. Gross Profit was 1974.4 + 1935.5 + 1459.9 + 1471.3 = $6,841 Mil. Total Current Assets was $8,100 Mil. Total Assets was $20,904 Mil. Property, Plant and Equipment(Net PPE) was $1,907 Mil. Depreciation, Depletion and Amortization(DDA) was $371 Mil. Selling, General, & Admin. Expense(SGA) was $3,466 Mil. Total Current Liabilities was $6,629 Mil. Long-Term Debt & Capital Lease Obligation was $4,317 Mil. Net Income was 772 + 755.3 + 436.3 + 504.3 = $2,468 Mil. Non Operating Income was -9 + -6.8 + -26 + -19.7 = $-62 Mil. Cash Flow from Operations was 1302.6 + 695.9 + 247.2 + 934.8 = $3,181 Mil. |
Total Receivables was $3,143 Mil. Revenue was 4882.9 + 4704.7 + 3665.8 + 4073.8 = $17,327 Mil. Gross Profit was 1658.1 + 1584.4 + 1143.5 + 1219.5 = $5,606 Mil. Total Current Assets was $6,727 Mil. Total Assets was $18,903 Mil. Property, Plant and Equipment(Net PPE) was $1,684 Mil. Depreciation, Depletion and Amortization(DDA) was $343 Mil. Selling, General, & Admin. Expense(SGA) was $2,829 Mil. Total Current Liabilities was $5,214 Mil. Long-Term Debt & Capital Lease Obligation was $4,476 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) |
= | (3393.4 / 19388.2) | / | (3142.5 / 17327.2) | |
= | 0.175024 | / | 0.181362 | |
= | 0.9651 |
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) | |
= | (5605.5 / 17327.2) | / | (6841.1 / 19388.2) | |
= | 0.323509 | / | 0.352849 | |
= | 0.9168 |
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 - (8099.7 + 1906.6) / 20903.7) | / | (1 - (6726.9 + 1683.8) / 18903.2) | |
= | 0.521314 | / | 0.555065 | |
= | 0.9392 |
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 | |
= | 19388.2 | / | 17327.2 | |
= | 1.1189 |
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)) |
= | (342.8 / (342.8 + 1683.8)) | / | (370.6 / (370.6 + 1906.6)) | |
= | 0.16915 | / | 0.162744 | |
= | 1.0394 |
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) |
= | (3466.3 / 19388.2) | / | (2828.8 / 17327.2) | |
= | 0.178784 | / | 0.163258 | |
= | 1.0951 |
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) |
= | ((4317.1 + 6628.9) / 20903.7) | / | ((4476.3 + 5214.2) / 18903.2) | |
= | 0.523639 | / | 0.512638 | |
= | 1.0215 |
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 | |
= | (2467.9 - -61.5 | - | 3180.5) | / | 20903.7 | |
= | -0.031148 |
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 -2.64 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Trane Technologies's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Raymond D Pittard | officer: Executive Vice President | 800-E BEATY STREET, DAVIDSON NC 28036 |
David S Regnery | director, officer: Chair and CEO | C/O INTERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036 |
Evan M Turtz | officer: Senior Vice President | C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036 |
Paul A Camuti | officer: Senior Vice President | 800-E BEATY STREET, DAVIDSON NC 28036 |
Christopher J Kuehn | officer: Vice President & Controller | 800-E BEATY STREET, DAVIDSON NC 28036 |
Mairead Magner | officer: Senior Vice President | 800-E BEATY STREET, DAVIDSON NC 28036 |
Keith A Sultana | officer: Senior Vice President | C/O INGERSOLL RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036 |
Mark Majocha | officer: VP & Chief Accounting Officer | C/O TRANE TECHNOLOGIES COMPANY LLC, 800-E BEATY STREET, DAVIDSON NC 28036 |
De Jesus Assis Ana Paula | director | C/O TRANE TECHNOLOGIES COMPANY LLC, 800-E BEATY STREET, DAVIDSON NC 28036 |
Linda P Hudson | director | |
John A Hayes | director | C/O BALL CORP, 10 LONGS PEAK DR, BROOMFIELD CO 80021-2510 |
Melissa N. Schaeffer | director | 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106 |
Mark R George | director | 650 W PEACHTREE ST NW, ATLANTA GA 30308 |
Marcia J Avedon | officer: Senior Vice President | C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036 |
Michael W Lamach | director, officer: President and CEO | C/O INGERSOLL-RAND CO, 800-E BEATY STREET, DAVIDSON NC 28036 |
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