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CR Bard Inc (NYSE:BCR)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

BCR' s 10-Year Beneish M-Score Range
Min: -3.77   Max: -2.19
Current: -2.86

-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 * 0.9399+0.528 * 0.9822+0.404 * 0.8974+0.892 * 1.0633+0.115 * 0.9848
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9656+4.679 * -0.0677-0.327 * 1.064
=-2.86

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was -54.7 + 139.8 + 134.2 + 131.3 = $351 Mil.
Non Operating Income was -141.8 + -16.6 + -23.4 + -14.8 = $-197 Mil.
Cash Flow from Operations was 393.4 + 114 + 121.6 + 254.4 = $883 Mil.
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.



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)
=(453.7 / 3376.7) / (454 / 3175.7)
=0.13436195 / 0.14296061
=0.9399

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)
=(508.5 / 3175.7) / (526.1 / 3376.7)
=0.61183361 / 0.62291586
=0.9822

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 - (2173.1 + 461.3) / 4967.5) / (1 - (2025.8 + 413.6) / 5118.3)
=0.46967287 / 0.52339644
=0.8974

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
=3376.7 / 3175.7
=1.0633

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))
=(160.8 / (160.8 + 413.6)) / (183.2 / (183.2 + 461.3))
=0.27994429 / 0.28425136
=0.9848

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)
=(985.2 / 3376.7) / (959.6 / 3175.7)
=0.29176415 / 0.3021696
=0.9656

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)
=((1147.5 + 1110) / 4967.5) / ((1404.1 + 782) / 5118.3)
=0.45445395 / 0.42711447
=1.064

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
=(350.6 - -196.6 - 883.4) / 4967.5
=-0.0677

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 -2.86 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 0.86421.11490.97410.97761.08520.97130.99640.96310.96740.8708
GMI 0.97571.00661.0080.99110.98580.99461.00621.00251.01850.9791
AQI 0.88321.15191.02141.02181.01441.11341.15830.9761.08381.0052
SGI 1.06781.11941.11231.11361.03381.07311.06481.02131.03091.0899
DEPI 1.07060.94580.91060.87770.97750.90430.99080.88951.00990.9706
SGAI 0.95731.03190.94230.98810.93051.03740.98221.00711.09230.9785
LVGI 1.050.68230.90230.91010.93572.74991.13670.96420.88341.002
TATA -0.0381-0.0105-0.0743-0.0374-0.043-0.0408-0.03-0.0319-0.2088-0.0146
M-score -2.78-2.16-2.71-2.55-2.54-3.18-2.54-2.65-3.39-2.60

CR Bard Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.87510.91130.93770.96740.96340.91280.90320.87080.89650.9399
GMI 1.00721.00761.01281.01851.00711.00370.99520.97910.98090.9822
AQI 1.01091.04071.08131.08381.10351.08431.05211.00520.97470.8974
SGI 1.01451.01431.02491.03091.04721.06361.07511.08991.07581.0633
DEPI 0.89370.93350.96651.009911.00321.00030.97060.99120.9848
SGAI 1.02111.03591.04851.09231.08051.05851.03390.97850.96880.9656
LVGI 1.01881.07471.06380.88340.88730.94560.87281.0021.02141.064
TATA -0.0359-0.0383-0.0463-0.2149-0.206-0.214-0.2167-0.0146-0.012-0.0677
M-score -2.76-2.75-2.73-3.42-3.37-3.46-3.46-2.60-2.59-2.86
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