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CR Bard Inc (NYSE:BCR)
Beneish M-Score
-2.59 (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.

CR Bard Inc has a M-score of -2.59 suggests that the company is not a manipulator.

BCR' s 10-Year Beneish M-Score Range
Min: -3.77   Max: -2.19
Current: -2.59

-3.77
-2.19

During the past 13 years, the highest Beneish M-Score of CR Bard Inc was -2.19. The lowest was -3.77. And the median was -2.59.


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 CR 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 * 0.8708+0.528 * 0.9791+0.404 * 1.0052+0.892 * 1.0899+0.115 * 0.9706
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9785+4.679 * -0.0135-0.327 * 1.002
=-2.59

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $455 Mil.
Revenue was 867.2 + 830 + 827.1 + 799.3 = $3,324 Mil.
Gross Profit was 547.7 + 521.1 + 506.4 + 489.8 = $2,065 Mil.
Total Current Assets was $2,047 Mil.
Total Assets was $5,093 Mil.
Property, Plant and Equipment(Net PPE) was $446 Mil.
Depreciation, Depletion and Amortization(DDA) was $174 Mil.
Selling, General & Admin. Expense(SGA) was $982 Mil.
Total Current Liabilities was $615 Mil.
Long-Term Debt was $1,402 Mil.
Net Income was 134.2 + 131.3 + -119.4 + 148.4 = $295 Mil.
Non Operating Income was -23.4 + -14.8 + -258.4 + 0 = $-297 Mil.
Cash Flow from Operations was 121.6 + 254.4 + 169.7 + 114.3 = $660 Mil.
Accounts Receivable was $480 Mil.
Revenue was 791.3 + 758 + 759.9 + 740.3 = $3,050 Mil.
Gross Profit was 480.7 + 466.1 + 463.3 + 445 = $1,855 Mil.
Total Current Assets was $2,090 Mil.
Total Assets was $5,041 Mil.
Property, Plant and Equipment(Net PPE) was $391 Mil.
Depreciation, Depletion and Amortization(DDA) was $146 Mil.
Selling, General & Admin. Expense(SGA) was $920 Mil.
Total Current Liabilities was $587 Mil.
Long-Term Debt was $1,406 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)
=(455.2 / 3323.6) / (479.6 / 3049.5)
=0.13695992 / 0.15727168
=0.8708

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)
=(521.1 / 3049.5) / (547.7 / 3323.6)
=0.60832923 / 0.62131424
=0.9791

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 - (2047.1 + 446.4) / 5092.6) / (1 - (2090.4 + 391.2) / 5041.1)
=0.51036798 / 0.50772649
=1.0052

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
=3323.6 / 3049.5
=1.0899

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))
=(146.4 / (146.4 + 391.2)) / (174.1 / (174.1 + 446.4))
=0.27232143 / 0.28058018
=0.9706

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)
=(981.5 / 3323.6) / (920.3 / 3049.5)
=0.29531231 / 0.30178718
=0.9785

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)
=((1401.9 + 614.6) / 5092.6) / ((1405.7 + 586.5) / 5041.1)
=0.3959667 / 0.39519153
=1.002

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
=(294.5 - -296.6 - 660) / 5092.6
=-0.0135

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.

CR Bard Inc has a M-score of -2.59 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.

CR Bard Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.86421.11490.97410.97761.08520.97130.99640.96310.96740.8708
GMI 0.97571.00661.0080.99110.98580.99461.00621.00251.01850.9791
AQI 0.88321.15191.02141.02181.01441.11341.15830.9761.08381.0052
SGI 1.06781.11941.11231.11361.03381.07311.06481.02131.03091.0899
DEPI 1.07060.94580.91060.87770.97750.90430.99080.88951.00990.9706
SGAI 0.95731.03190.94230.98810.93051.03740.98221.00711.09230.9785
LVGI 1.050.68230.90230.91010.93572.74991.13670.96420.88341.002
TATA -0.0381-0.0105-0.0743-0.0374-0.043-0.0408-0.03-0.0319-0.2088-0.0146
M-score -2.78-2.16-2.71-2.55-2.54-3.18-2.54-2.65-3.39-2.60

CR Bard Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.96780.96310.87510.91130.93770.96740.96340.91280.90320.8708
GMI 1.00471.00251.00721.00761.01281.01851.00711.00370.99520.9791
AQI 1.24320.9761.01091.04071.08131.08381.10351.08431.05211.0052
SGI 1.031.02131.01451.01431.02491.03091.04721.06361.07511.0899
DEPI 0.910.88950.89370.93350.96651.009911.00321.00030.9706
SGAI 1.01221.00711.02111.03591.04851.09231.08051.05851.03390.9785
LVGI 1.07780.96421.01881.07471.06380.88340.88730.94560.87281.002
TATA -0.0029-0.0297-0.0359-0.0383-0.0463-0.2149-0.2048-0.2128-0.2156-0.0135
M-score -2.43-2.64-2.76-2.75-2.73-3.42-3.36-3.46-3.46-2.59
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