Switch to:
C.R. Bard Inc (NYSE:BCR)
Beneish M-Score
-3.09 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

C.R. Bard Inc has a M-score of -3.09 suggests that the company is not a manipulator.

BCR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75   Max: -2.19
Current: -3.09

-3.75
-2.19

During the past 13 years, the highest Beneish M-Score of C.R. Bard Inc was -2.19. The lowest was -3.75. And the median was -2.72.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 C.R. Bard Inc 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 * 1.0114+0.528 * 1.0012+0.404 * 0.9999+0.892 * 1.0376+0.115 * 0.95
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0292+4.679 * -0.1236-0.327 * 1.2091
=-3.09

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $458 Mil.
Revenue was 873.5 + 870.8 + 865.7 + 859.8 = $3,470 Mil.
Gross Profit was 553.1 + 550.8 + 529.4 + 526.1 = $2,159 Mil.
Total Current Assets was $2,075 Mil.
Total Assets was $5,177 Mil.
Property, Plant and Equipment(Net PPE) was $474 Mil.
Depreciation, Depletion and Amortization(DDA) was $200 Mil.
Selling, General & Admin. Expense(SGA) was $1,047 Mil.
Total Current Liabilities was $1,394 Mil.
Long-Term Debt was $1,145 Mil.
Net Income was 116.2 + 136.3 + -86 + -54.7 = $112 Mil.
Non Operating Income was -60.3 + 461 + -258.6 + -141.8 = $0 Mil.
Cash Flow from Operations was 67.2 + 116.8 + 173.9 + 393.4 = $751 Mil.
Accounts Receivable was $437 Mil.
Revenue was 819.7 + 867.2 + 830 + 827.1 = $3,344 Mil.
Gross Profit was 508.5 + 547.7 + 521.1 + 506.4 = $2,084 Mil.
Total Current Assets was $2,037 Mil.
Total Assets was $5,057 Mil.
Property, Plant and Equipment(Net PPE) was $453 Mil.
Depreciation, Depletion and Amortization(DDA) was $178 Mil.
Selling, General & Admin. Expense(SGA) was $980 Mil.
Total Current Liabilities was $903 Mil.
Long-Term Debt was $1,147 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(458.1 / 3469.8) / (436.5 / 3344)
=0.1320249 / 0.1305323
=1.0114

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)
=(550.8 / 3344) / (553.1 / 3469.8)
=0.62311603 / 0.62234135
=1.0012

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2074.9 + 473.9) / 5176.9) / (1 - (2036.8 + 452.6) / 5056.7)
=0.50765902 / 0.50770265
=0.9999

4. SGI = Sales Growth Index

Ratio of sales 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
=3469.8 / 3344
=1.0376

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(177.7 / (177.7 + 452.6)) / (200 / (200 + 473.9))
=0.28192924 / 0.29677994
=0.95

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(1047 / 3469.8) / (980.4 / 3344)
=0.3017465 / 0.29318182
=1.0292

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1144.5 + 1393.6) / 5176.9) / ((1147.4 + 903) / 5056.7)
=0.4902741 / 0.40548184
=1.2091

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
=(111.8 - 0.3 - 751.3) / 5176.9
=-0.1236

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

C.R. Bard Inc has a M-score of -3.09 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

C.R. Bard Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.11340.9770.97761.08520.97130.99640.96310.96740.87080.9514
GMI 1.00661.00520.99290.9840.99461.00621.00251.01850.97911.0036
AQI 1.15191.02141.02181.01441.11341.15830.9761.08381.00520.9424
SGI 1.12091.1091.11361.03381.07311.06481.02131.03091.08991.0278
DEPI 0.95160.95190.87950.97750.90430.99080.88951.00990.97060.967
SGAI 1.0280.94380.98810.93051.03741.28690.76871.09230.97851.0033
LVGI 0.68230.90230.91010.93572.74991.13670.96420.88341.0021.2311
TATA 0.0232-0.0597-0.0264-0.0588-0.0316-0.0958-0.0205-0.0842-0.0146-0.143
M-score -2.00-2.64-2.50-2.62-3.14-2.90-2.56-2.81-2.60-3.27

C.R. Bard Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.96740.96340.91280.90320.87080.89650.93990.94870.95141.0114
GMI 1.01851.00711.00370.99520.97910.98090.98220.99411.00361.0012
AQI 1.08381.10351.08431.05211.00520.97470.89740.93040.94240.9999
SGI 1.03091.04721.06361.07511.08991.07581.06331.05071.02781.0376
DEPI 1.009911.00321.00030.97060.99120.98480.97330.9670.95
SGAI 1.09231.08051.05851.03390.97850.96880.96560.9641.00331.0292
LVGI 0.88340.88730.94560.87281.0021.02141.0641.22911.23111.2091
TATA -0.1638-0.1509-0.1015-0.1042-0.0802-0.078-0.1349-0.1132-0.143-0.1236
M-score -3.18-3.11-2.93-2.94-2.90-2.90-3.18-3.11-3.27-3.09
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK