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CR Bard Inc (NYSE:BCR)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

BCR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77   Max: -2.19
Current: -2.8

-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 -2.71.


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 * 0.9487+0.528 * 0.9941+0.404 * 0.9304+0.892 * 1.0507+0.115 * 0.9733
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.964+4.679 * -0.0461-0.327 * 1.2291
=-2.80

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $442 Mil.
Revenue was 865.7 + 859.8 + 819.7 + 867.2 = $3,412 Mil.
Gross Profit was 529.4 + 526.1 + 508.5 + 547.7 = $2,112 Mil.
Total Current Assets was $2,106 Mil.
Total Assets was $4,972 Mil.
Property, Plant and Equipment(Net PPE) was $467 Mil.
Depreciation, Depletion and Amortization(DDA) was $189 Mil.
Selling, General & Admin. Expense(SGA) was $990 Mil.
Total Current Liabilities was $1,300 Mil.
Long-Term Debt was $1,148 Mil.
Net Income was -86 + -54.7 + 139.8 + 134.2 = $133 Mil.
Non Operating Income was -258.6 + -141.8 + -16.6 + -23.4 = $-440 Mil.
Cash Flow from Operations was 173.9 + 393.4 + 114 + 121.6 = $803 Mil.
Accounts Receivable was $443 Mil.
Revenue was 830 + 827.1 + 799.3 + 791.3 = $3,248 Mil.
Gross Profit was 521.1 + 506.4 + 489.8 + 480.7 = $1,998 Mil.
Total Current Assets was $2,031 Mil.
Total Assets was $5,114 Mil.
Property, Plant and Equipment(Net PPE) was $430 Mil.
Depreciation, Depletion and Amortization(DDA) was $168 Mil.
Selling, General & Admin. Expense(SGA) was $978 Mil.
Total Current Liabilities was $645 Mil.
Long-Term Debt was $1,403 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)
=(441.9 / 3412.4) / (443.3 / 3247.7)
=0.1294983 / 0.1364966
=0.9487

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)
=(526.1 / 3247.7) / (529.4 / 3412.4)
=0.61520461 / 0.61883132
=0.9941

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 - (2106.1 + 466.8) / 4972.4) / (1 - (2031.1 + 430.3) / 5113.7)
=0.48256375 / 0.51866555
=0.9304

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
=3412.4 / 3247.7
=1.0507

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))
=(168.1 / (168.1 + 430.3)) / (189.4 / (189.4 + 466.8))
=0.28091578 / 0.28863151
=0.9733

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)
=(990.3 / 3412.4) / (977.7 / 3247.7)
=0.29020631 / 0.30104382
=0.964

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)
=((1147.7 + 1299.5) / 4972.4) / ((1402.8 + 644.9) / 5113.7)
=0.49215671 / 0.40043413
=1.2291

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
=(133.3 - -440.4 - 802.9) / 4972.4
=-0.0461

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 -2.80 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.11490.97410.97761.08520.97130.99640.96310.96740.8708
GMI 1.00661.0080.99110.98580.99461.00621.00251.01850.9791
AQI 1.15191.02141.02181.01441.11341.15830.9761.08381.0052
SGI 1.11941.11231.11361.03381.07311.06481.02131.03091.0899
DEPI 0.94580.91060.87770.97750.90430.99080.88951.00990.9706
SGAI 1.03190.94230.98810.93051.03740.98221.00711.09230.9785
LVGI 0.68230.90230.91010.93572.74991.13670.96420.88341.002
TATA -0.0105-0.0743-0.0374-0.043-0.0316-0.0991-0.0219-0.2088-0.0146
M-score -2.16-2.71-2.55-2.54-3.14-2.86-2.61-3.39-2.60

CR Bard Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.93770.96740.96340.91280.90320.87080.89650.93990.9487
GMI 1.01281.01851.00711.00370.99520.97910.98090.98220.9941
AQI 1.08131.08381.10351.08431.05211.00520.97470.89740.9304
SGI 1.02491.03091.04721.06361.07511.08991.07581.06331.0507
DEPI 0.96651.009911.00321.00030.97060.99120.98480.9733
SGAI 1.04851.09231.08051.05851.03390.97850.96880.96560.964
LVGI 1.06380.88340.88730.94560.87281.0021.02141.0641.2291
TATA -0.1074-0.2736-0.2667-0.214-0.2167-0.0146-0.012-0.0677-0.0461
M-score -3.01-3.70-3.65-3.46-3.46-2.60-2.59-2.86-2.80
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