Switch to:
C.R. Bard, Inc. (NYSE:BCR)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

BCR' s 10-Year Beneish M-Score Range
Min: -3.75   Max: -2.19
Current: -2.51

-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 -2.56.


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 * 0.9674+0.528 * 1.0185+0.404 * 1.0838+0.892 * 1.0309+0.115 * 1.0099
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0923+4.679 * -0.0212-0.327 * 0.8834
=-2.51

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $480 Mil.
Revenue was 791.3 + 758 + 759.9 + 740.3 = $3,050 Mil.
Gross Profit was 480.7 + 466.1 + 463.3 + 445 = $1,855 Mil.
Total Current Assets was $2,090 Mil.
Total Assets was $5,041 Mil.
Property, Plant and Equipment(Net PPE) was $391 Mil.
Depreciation, Depletion and Amortization(DDA) was $146 Mil.
Selling, General & Admin. Expense(SGA) was $920 Mil.
Total Current Liabilities was $587 Mil.
Long-Term Debt was $1,406 Mil.
Net Income was 667.5 + 93.2 + -161.6 + 90.7 = $690 Mil.
Non Operating Income was 0 + 0 + -296 + -30.6 = $-327 Mil.
Cash Flow from Operations was 706.3 + 201.3 + 74.7 + 141 = $1,123 Mil.
Accounts Receivable was $481 Mil.
Revenue was 762.6 + 722.9 + 742.6 + 730 = $2,958 Mil.
Gross Profit was 475 + 450.3 + 456.9 + 450.6 = $1,833 Mil.
Total Current Assets was $1,847 Mil.
Total Assets was $4,151 Mil.
Property, Plant and Equipment(Net PPE) was $359 Mil.
Depreciation, Depletion and Amortization(DDA) was $136 Mil.
Selling, General & Admin. Expense(SGA) was $817 Mil.
Total Current Liabilities was $448 Mil.
Long-Term Debt was $1,410 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)
=(479.6 / 3049.5) / (480.9 / 2958.1)
=0.15727168 / 0.16257057
=0.9674

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)
=(466.1 / 2958.1) / (480.7 / 3049.5)
=0.6195869 / 0.60832923
=1.0185

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 - (2090.4 + 391.2) / 5041.1) / (1 - (1847.2 + 359.3) / 4151.3)
=0.50772649 / 0.46847975
=1.0838

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
=3049.5 / 2958.1
=1.0309

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))
=(136.3 / (136.3 + 359.3)) / (146.4 / (146.4 + 391.2))
=0.27502018 / 0.27232143
=1.0099

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)
=(920.3 / 3049.5) / (817.3 / 2958.1)
=0.30178718 / 0.27629221
=1.0923

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)
=((1405.7 + 586.5) / 5041.1) / ((1409.6 + 447.6) / 4151.3)
=0.39519153 / 0.44737793
=0.8834

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
=(689.8 - -326.6 - 1123.3) / 5041.1
=-0.0212

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 -2.51 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.12020.86421.11490.97410.97761.08520.97130.99640.96310.9674
GMI 0.95590.97571.00661.0080.99110.98580.99461.00621.00251.0185
AQI 0.9840.88321.15191.02141.02181.01441.11341.15830.9761.0838
SGI 1.15561.06781.11941.11231.11361.03381.07311.06481.02131.0309
DEPI 0.96421.07060.94580.91060.87770.97750.90430.99080.88951.0099
SGAI 1.00610.95731.03190.94230.98810.93051.03740.98221.00711.0923
LVGI 0.79561.050.68230.90230.91010.93572.74991.13670.96420.8834
TATA -0.0127-0.0381-0.0105-0.0743-0.0374-0.043-0.0316-0.03-0.0316-0.086
M-score -2.26-2.78-2.16-2.71-2.55-2.54-3.14-2.54-2.65-2.82

C.R. Bard, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.02590.99641.04041.02230.96780.96310.87510.91130.93770.9674
GMI 0.99941.00621.01191.01111.00471.00251.00721.00761.01281.0185
AQI 0.87961.15831.16921.25571.24320.9761.01091.04071.08131.0838
SGI 1.06781.06481.05651.04361.031.02131.01451.01431.02491.0309
DEPI 0.97030.99080.9870.95510.910.88950.89370.93350.96651.0099
SGAI 0.99480.98220.9810.99441.01221.00711.02111.03591.04851.0923
LVGI 1.89191.13671.22211.08791.07780.96421.01881.07471.06380.8834
TATA -0.0455-0.0301-0.0253-0.0101-0.0029-0.0294-0.0281-0.0308-0.0418-0.0212
M-score -2.95-2.54-2.51-2.39-2.43-2.64-2.73-2.71-2.70-2.51
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide