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CR Bard Inc (NYSE:BCR)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

BCR' s 10-Year Beneish M-Score Range
Min: -3.77   Max: -2.19
Current: -2.89

-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 -2.67.


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 * 0.9032+0.528 * 0.9952+0.404 * 1.0521+0.892 * 1.0751+0.115 * 1.0003
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0339+4.679 * -0.0945-0.327 * 0.8728
=-2.89

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 131.3 + -119.4 + 148.4 + 667.5 = $828 Mil.
Non Operating Income was -14.8 + -258.4 + 0 + 339.5 = $66 Mil.
Cash Flow from Operations was 254.4 + 169.7 + 114.3 + 706.3 = $1,245 Mil.
Accounts Receivable was $457 Mil.
Revenue was 758 + 759.9 + 740.3 + 762.6 = $3,021 Mil.
Gross Profit was 466.1 + 463.3 + 445 + 475 = $1,849 Mil.
Total Current Assets was $1,751 Mil.
Total Assets was $4,165 Mil.
Property, Plant and Equipment(Net PPE) was $361 Mil.
Depreciation, Depletion and Amortization(DDA) was $141 Mil.
Selling, General & Admin. Expense(SGA) was $880 Mil.
Total Current Liabilities was $504 Mil.
Long-Term Debt was $1,407 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)
=(443.3 / 3247.7) / (456.5 / 3020.8)
=0.1364966 / 0.15111891
=0.9032

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)
=(506.4 / 3020.8) / (521.1 / 3247.7)
=0.61222193 / 0.61520461
=0.9952

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 - (2031.1 + 430.3) / 5113.7) / (1 - (1751.3 + 360.5) / 4165)
=0.51866555 / 0.49296519
=1.0521

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
=3247.7 / 3020.8
=1.0751

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))
=(140.9 / (140.9 + 360.5)) / (168.1 / (168.1 + 430.3))
=0.28101316 / 0.28091578
=1.0003

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)
=(977.7 / 3247.7) / (879.6 / 3020.8)
=0.30104382 / 0.29118114
=1.0339

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)
=((1402.8 + 644.9) / 5113.7) / ((1406.5 + 504.4) / 4165)
=0.40043413 / 0.45879952
=0.8728

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
=(827.8 - 66.3 - 1244.7) / 5113.7
=-0.0945

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 -2.89 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 0.86421.11490.97410.97761.08520.97130.99640.96310.9674
GMI 0.97571.00661.0080.99110.98580.99461.00621.00251.0185
AQI 0.88321.15191.02141.02181.01441.11341.15830.9761.0838
SGI 1.06781.11941.11231.11361.03381.07311.06481.02131.0309
DEPI 1.07060.94580.91060.87770.97750.90430.99080.88951.0099
SGAI 0.95731.03190.94230.98810.93051.03740.98221.00711.0923
LVGI 1.050.68230.90230.91010.93572.74991.13670.96420.8834
TATA -0.0381-0.0105-0.0743-0.0374-0.043-0.0316-0.03-0.0316-0.086
M-score -2.78-2.16-2.71-2.55-2.54-3.14-2.54-2.65-2.82

CR Bard Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.96780.96310.87510.91130.93770.96740.96340.91280.9032
GMI 1.00471.00251.00721.00761.01281.01851.00711.00370.9952
AQI 1.24320.9761.01091.04071.08131.08381.10351.08431.0521
SGI 1.031.02131.01451.01431.02491.03091.04721.06361.0751
DEPI 0.910.88950.89370.93350.96651.009911.00321.0003
SGAI 1.01221.00711.02111.03591.04851.09231.08051.05851.0339
LVGI 1.07780.96421.01881.07471.06380.88340.88730.94560.8728
TATA -0.0029-0.0294-0.0356-0.038-0.046-0.0921-0.0778-0.0918-0.0945
M-score -2.43-2.64-2.76-2.74-2.72-2.85-2.77-2.89-2.89
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