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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: -3.75   Max: -2.02
Current: -2.59

-3.75
-2.02

During the past 13 years, the highest Beneish M-Score of CR Bard Inc was -2.02. The lowest was -3.75. And the median was -2.61.


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 * 0.9128+0.528 * 1.0037+0.404 * 1.0843+0.892 * 1.0636+0.115 * 1.0032
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0585+4.679 * -0.028-0.327 * 0.9456
=-2.59

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $454 Mil.
Revenue was 827.1 + 799.3 + 791.3 + 758 = $3,176 Mil.
Gross Profit was 506.4 + 489.8 + 480.7 + 466.1 = $1,943 Mil.
Total Current Assets was $2,026 Mil.
Total Assets was $5,118 Mil.
Property, Plant and Equipment(Net PPE) was $414 Mil.
Depreciation, Depletion and Amortization(DDA) was $161 Mil.
Selling, General & Admin. Expense(SGA) was $960 Mil.
Total Current Liabilities was $782 Mil.
Long-Term Debt was $1,404 Mil.
Net Income was -119.4 + 148.4 + 667.5 + 93.2 = $790 Mil.
Non Operating Income was -258.4 + 0 + 0 + 0 = $-258 Mil.
Cash Flow from Operations was 169.7 + 114.3 + 706.3 + 201.3 = $1,192 Mil.
Accounts Receivable was $468 Mil.
Revenue was 759.9 + 740.3 + 762.6 + 722.9 = $2,986 Mil.
Gross Profit was 463.3 + 445 + 475 + 450.3 = $1,834 Mil.
Total Current Assets was $1,831 Mil.
Total Assets was $4,228 Mil.
Property, Plant and Equipment(Net PPE) was $356 Mil.
Depreciation, Depletion and Amortization(DDA) was $139 Mil.
Selling, General & Admin. Expense(SGA) was $852 Mil.
Total Current Liabilities was $503 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)
=(454 / 3175.7) / (467.6 / 2985.7)
=0.14296061 / 0.15661319
=0.9128

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)
=(489.8 / 2985.7) / (506.4 / 3175.7)
=0.61412734 / 0.61183361
=1.0037

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 - (2025.8 + 413.6) / 5118.3) / (1 - (1830.8 + 356.2) / 4227.6)
=0.52339644 / 0.48268521
=1.0843

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
=3175.7 / 2985.7
=1.0636

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))
=(139.1 / (139.1 + 356.2)) / (160.8 / (160.8 + 413.6))
=0.2808399 / 0.27994429
=1.0032

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)
=(959.6 / 3175.7) / (852.3 / 2985.7)
=0.3021696 / 0.2854607
=1.0585

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)
=((1404.1 + 782) / 5118.3) / ((1406.6 + 502.9) / 4227.6)
=0.42711447 / 0.45167471
=0.9456

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
=(789.7 - -258.4 - 1191.6) / 5118.3
=-0.028

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.12020.86281.11570.97490.97761.08520.97130.99640.96310.9674
GMI 0.95590.97841.00661.00520.99290.9840.99461.00621.00251.0185
AQI 0.9840.88321.15191.02141.02181.01441.11341.160.97451.0838
SGI 1.15561.06961.12091.1091.11361.03381.07311.06481.02131.0309
DEPI 0.96421.01580.95160.95190.87950.97750.90430.99080.88951.0099
SGAI 1.00610.95941.0280.94380.98810.93051.03741.28690.76871.0923
LVGI 0.79561.050.69260.8890.91010.93572.74991.12970.97010.8834
TATA -0.0127-0.030.0232-0.0597-0.0264-0.0443-0.0316-0.1001-0.0205-0.086
M-score -2.26-2.75-2.00-2.63-2.50-2.55-3.14-2.92-2.56-2.82

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 1.16921.25571.24320.97451.01091.04071.08131.08381.10351.0843
SGI 1.05651.04361.031.02131.01451.01431.02491.03091.04721.0636
DEPI 0.9870.95510.910.88950.89370.93350.96651.009911.0032
SGAI 1.28231.29661.3170.76870.78120.79450.80581.09231.08051.0585
LVGI 1.22211.08791.07780.97011.01881.07471.06380.88340.88730.9456
TATA -0.0456-0.0316-0.0168-0.0211-0.0195-0.0218-0.0356-0.0212-0.0109-0.028
M-score -2.65-2.54-2.55-2.57-2.65-2.63-2.63-2.51-2.45-2.59
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