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C.R. Bard Inc (NYSE:BCR)
Beneish M-Score
-2.70 (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 -2.70 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: -2.7

-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 -2.71.


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 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 * 0.9818+0.528 * 0.9965+0.404 * 1.0534+0.892 * 1.0488+0.115 * 0.9334
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0409+4.679 * -0.0482-0.327 * 1.0742
=-2.70

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $467 Mil.
Revenue was 931.5 + 873.5 + 870.8 + 865.7 = $3,542 Mil.
Gross Profit was 580.5 + 553.1 + 550.8 + 529.4 = $2,214 Mil.
Total Current Assets was $2,185 Mil.
Total Assets was $5,258 Mil.
Property, Plant and Equipment(Net PPE) was $472 Mil.
Depreciation, Depletion and Amortization(DDA) was $207 Mil.
Selling, General & Admin. Expense(SGA) was $1,076 Mil.
Total Current Liabilities was $926 Mil.
Long-Term Debt was $1,641 Mil.
Net Income was 159.2 + 116.2 + 136.3 + -86 = $326 Mil.
Non Operating Income was -9.6 + -60.3 + 461 + -258.6 = $133 Mil.
Cash Flow from Operations was 88.9 + 67.2 + 116.8 + 173.9 = $447 Mil.
Accounts Receivable was $454 Mil.
Revenue was 859.8 + 819.7 + 867.2 + 830 = $3,377 Mil.
Gross Profit was 526.1 + 508.5 + 547.7 + 521.1 = $2,103 Mil.
Total Current Assets was $2,173 Mil.
Total Assets was $4,968 Mil.
Property, Plant and Equipment(Net PPE) was $461 Mil.
Depreciation, Depletion and Amortization(DDA) was $183 Mil.
Selling, General & Admin. Expense(SGA) was $985 Mil.
Total Current Liabilities was $1,110 Mil.
Long-Term Debt was $1,148 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)
=(467.2 / 3541.5) / (453.7 / 3376.7)
=0.1319215 / 0.13436195
=0.9818

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)
=(2103.4 / 3376.7) / (2213.8 / 3541.5)
=0.62291586 / 0.62510236
=0.9965

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 - (2185.2 + 471.6) / 5258.2) / (1 - (2173.1 + 461.3) / 4967.5)
=0.49473204 / 0.46967287
=1.0534

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
=3541.5 / 3376.7
=1.0488

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))
=(183.2 / (183.2 + 461.3)) / (206.5 / (206.5 + 471.6))
=0.28425136 / 0.30452736
=0.9334

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)
=(1075.5 / 3541.5) / (985.2 / 3376.7)
=0.30368488 / 0.29176415
=1.0409

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)
=((1640.5 + 926.4) / 5258.2) / ((1147.5 + 1110) / 4967.5)
=0.48817086 / 0.45445395
=1.0742

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
=(325.7 - 132.5 - 446.8) / 5258.2
=-0.0482

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 -2.70 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 1.11490.97410.97761.08520.97130.99640.96310.96740.87080.9514
GMI 1.00661.0080.99110.98580.99461.00621.00251.01850.97911.0036
AQI 1.15191.02141.02181.01441.11341.15830.9761.08381.00520.9424
SGI 1.11941.11231.11361.03381.07311.06481.02131.03091.08991.0278
DEPI 0.94580.91060.87770.97750.90430.99080.88951.00990.97060.967
SGAI 1.03190.94230.98810.93051.03740.98221.00711.09230.97851.0033
LVGI 0.68230.90230.91010.93572.74991.13670.96420.88341.0021.2311
TATA -0.0105-0.0743-0.0419-0.043-0.0316-0.0991-0.0219-0.0947-0.0802-0.143
M-score -2.16-2.71-2.57-2.54-3.14-2.86-2.61-2.86-2.90-3.27

C.R. Bard Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.96340.91280.90320.87080.89650.93990.94870.95141.01140.9818
GMI 1.00711.00370.99520.97910.98090.98220.99411.00361.00120.9965
AQI 1.10351.08431.05211.00520.97470.89740.93040.94240.99991.0534
SGI 1.04721.06361.07511.08991.07581.06331.05071.02781.03761.0488
DEPI 11.00321.00030.97060.99120.98480.97330.9670.950.9334
SGAI 1.08051.05851.03390.97850.96880.96560.9641.00331.02921.0409
LVGI 0.88730.94560.87281.0021.02141.0641.22911.23111.20911.0742
TATA -0.1509-0.1015-0.1042-0.0802-0.078-0.1349-0.1132-0.143-0.1236-0.0482
M-score -3.11-2.93-2.94-2.90-2.90-3.18-3.11-3.27-3.09-2.70
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