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TE Connectivity (TE Connectivity) Beneish M-Score

: -2.40 (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 -2.4 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: -2.88   Med: -2.48   Max: -2.07
Current: -2.4

During the past 13 years, the highest Beneish M-Score of TE Connectivity was -2.07. The lowest was -2.88. And the median was -2.48.


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 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.52 -2.71 -2.35 -2.46 -2.62

TE Connectivity Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -2.44 -2.50 -2.58 -2.62 -2.40

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 into.



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 * 0.9888+0.528 * 0.9845+0.404 * 1.0629+0.892 * 0.9828+0.115 * 0.9875
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0736+4.679 * 0.014824-0.327 * 0.8993
=-2.40

* 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 $2,828 Mil.
Revenue was 3831 + 4035 + 3998 + 4160 = $16,024 Mil.
Gross Profit was 1324 + 1285 + 1299 + 1284 = $5,192 Mil.
Total Current Assets was $7,441 Mil.
Total Assets was $23,071 Mil.
Property, Plant and Equipment(Net PPE) was $3,854 Mil.
Depreciation, Depletion and Amortization(DDA) was $801 Mil.
Selling, General, & Admin. Expense(SGA) was $1,702 Mil.
Total Current Liabilities was $4,011 Mil.
Long-Term Debt & Capital Lease Obligation was $3,585 Mil.
Net Income was 1803 + 552 + 528 + 433 = $3,316 Mil.
Non Operating Income was -32 + -67 + -66 + -131 = $-296 Mil.
Cash Flow from Operations was 719 + 1138 + 779 + 634 = $3,270 Mil.
Total Receivables was $2,910 Mil.
Revenue was 3841 + 4359 + 4097 + 4007 = $16,304 Mil.
Gross Profit was 1187 + 1349 + 1328 + 1337 = $5,201 Mil.
Total Current Assets was $7,318 Mil.
Total Assets was $21,353 Mil.
Property, Plant and Equipment(Net PPE) was $3,781 Mil.
Depreciation, Depletion and Amortization(DDA) was $774 Mil.
Selling, General, & Admin. Expense(SGA) was $1,613 Mil.
Total Current Liabilities was $4,420 Mil.
Long-Term Debt & Capital Lease Obligation was $3,398 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)
=(2828 / 16024) / (2910 / 16304)
=0.176485 / 0.178484
=0.9888

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)
=(5201 / 16304) / (5192 / 16024)
=0.319001 / 0.324014
=0.9845

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 - (7441 + 3854) / 23071) / (1 - (7318 + 3781) / 21353)
=0.510424 / 0.480214
=1.0629

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
=16024 / 16304
=0.9828

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))
=(774 / (774 + 3781)) / (801 / (801 + 3854))
=0.169923 / 0.172073
=0.9875

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)
=(1702 / 16024) / (1613 / 16304)
=0.106216 / 0.098933
=1.0736

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)
=((3585 + 4011) / 23071) / ((3398 + 4420) / 21353)
=0.329245 / 0.366131
=0.8993

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
=(3316 - -296 - 3270) / 23071
=0.014824

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 -2.40 suggests that the company is unlikely to be a manipulator.


TE Connectivity Beneish M-Score Related Terms

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TE Connectivity (TE Connectivity) Business Description

Traded in Other Exchanges
N/A
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 has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Terrence R Curtin director, officer: EVP & Chief Financial Officer C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
John S Jenkins officer: EVP & General Counsel 1050 WESTLAKES DRIVE, BERWYN PA 19312
Heath A Mitts officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Malavika Sagar officer: SVP, Chief Human Resources Off 1050 WESTLAKES DRIVE, BERWYN PA 19312
Jean-pierre Clamadieu director 1050 WESTLAKES DRIVE, BERWYN PA 19312
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
Tim Murphy officer: SVP & CHRO 1050 WESTLAKES DRIVE, BERWYN PA 19312
Thomas J Lynch director, officer: Chief Executive Officer 7 LAKEVIEW DRIVE, NEWTOWN PA 19840
Syaru Shirley Lin director
Robert J Ott officer: Sr VP & Controller C/O TYCO ELECTRONICS LTD, 1050 WESTLAKES DRIVE, BERWYN PA 19312
Steven T Merkt officer: President, Transportation Sol. 1050 WESTLAKES DRIVE, BERWYN PA 19312
Daniel J Phelan director C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
Aaron Kyle Stucki officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE, BERWYN PA 19312
Eric Resch director, officer: SVP and Tax Officer C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312

TE Connectivity (TE Connectivity) Headlines