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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 -3.36 suggests that the company is not a manipulator.

BCR' s 10-Year Beneish M-Score Range
Min: -3.75   Max: -2.19
Current: -2.59

-3.75
-2.19

During the past 13 years, the highest Beneish M-Score of CR Bard Inc was -2.19. The lowest was -3.75. And the median was -2.66.


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 * 0.9634+0.528 * 1.0071+0.404 * 1.1035+0.892 * 1.0472+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0805+4.679 * -0.2047-0.327 * 0.8873
=-3.36

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $453 Mil.
Revenue was 799.3 + 791.3 + 758 + 759.9 = $3,109 Mil.
Gross Profit was 489.8 + 480.7 + 466.1 + 463.3 = $1,900 Mil.
Total Current Assets was $1,941 Mil.
Total Assets was $4,878 Mil.
Property, Plant and Equipment(Net PPE) was $396 Mil.
Depreciation, Depletion and Amortization(DDA) was $154 Mil.
Selling, General & Admin. Expense(SGA) was $941 Mil.
Total Current Liabilities was $532 Mil.
Long-Term Debt was $1,405 Mil.
Net Income was 148.4 + 667.5 + 93.2 + -161.6 = $748 Mil.
Non Operating Income was 0 + 957.9 + -12.6 + -295.7 = $650 Mil.
Cash Flow from Operations was 114.3 + 706.3 + 201.3 + 74.7 = $1,097 Mil.
Accounts Receivable was $449 Mil.
Revenue was 740.3 + 762.6 + 722.9 + 742.6 = $2,968 Mil.
Gross Profit was 445 + 475 + 450.3 + 456.9 = $1,827 Mil.
Total Current Assets was $1,796 Mil.
Total Assets was $4,077 Mil.
Property, Plant and Equipment(Net PPE) was $357 Mil.
Depreciation, Depletion and Amortization(DDA) was $138 Mil.
Selling, General & Admin. Expense(SGA) was $831 Mil.
Total Current Liabilities was $416 Mil.
Long-Term Debt was $1,409 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)
=(452.6 / 3108.5) / (448.6 / 2968.4)
=0.14560077 / 0.15112519
=0.9634

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)
=(480.7 / 2968.4) / (489.8 / 3108.5)
=0.61555046 / 0.61119511
=1.0071

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 - (1941.2 + 395.8) / 4877.9) / (1 - (1795.9 + 356.6) / 4077.1)
=0.52090039 / 0.47205121
=1.1035

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
=3108.5 / 2968.4
=1.0472

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))
=(138.3 / (138.3 + 356.6)) / (153.5 / (153.5 + 395.8))
=0.27945039 / 0.27944657
=1

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)
=(940.7 / 3108.5) / (831.4 / 2968.4)
=0.30262184 / 0.28008355
=1.0805

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)
=((1404.8 + 531.7) / 4877.9) / ((1408.6 + 415.6) / 4077.1)
=0.39699461 / 0.44742587
=0.8873

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
=(747.5 - 649.6 - 1096.6) / 4877.9
=-0.2047

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 -3.36 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.12020.86421.11490.97410.97761.08520.97130.99640.96310.9674
GMI 0.95590.97571.00661.0080.99110.98580.99461.00621.00251.0185
AQI 0.9840.88321.15191.02141.02181.01441.11341.15830.9761.0838
SGI 1.15561.06781.11941.11231.11361.03381.07311.06481.02131.0309
DEPI 0.96421.07060.94580.91060.87770.97750.90430.99080.88951.0099
SGAI 1.00610.95731.03190.94230.98810.93051.03740.98221.00711.0923
LVGI 0.79561.050.68230.90230.91010.93572.74991.13670.96420.8834
TATA -0.0127-0.0381-0.0105-0.0743-0.0374-0.0443-0.0328-0.03-0.0219-0.2088
M-score -2.26-2.78-2.16-2.71-2.55-2.55-3.14-2.54-2.61-3.39

CR Bard Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.04041.02230.96780.96310.87510.91130.93770.96740.96340.9128
GMI 1.01191.01111.00471.00251.00721.00761.01281.01851.00711.0037
AQI 1.16921.25571.24320.9761.01091.04071.08131.08381.10351.0843
SGI 1.05651.04361.031.02131.01451.01431.02491.03091.04721.0636
DEPI 0.9870.95510.910.88950.89370.93350.96651.009911.0032
SGAI 0.9810.99441.01221.00711.02111.03591.04851.09231.08051.0585
LVGI 1.22211.08791.07780.96421.01881.07471.06380.88340.88730.9456
TATA -0.0254-0.011-0.0004-0.0219-0.0204-0.0226-0.0338-0.2088-0.2047-0.2129
M-score -2.51-2.40-2.42-2.61-2.69-2.67-2.67-3.39-3.36-3.46
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