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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.38 (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.

Crown Castle International Corp has a M-score of -2.38 suggests that the company is not a manipulator.

CCI' s 10-Year Beneish M-Score Range
Min: -5.49   Max: -1.23
Current: -2.38

-5.49
-1.23

During the past 13 years, the highest Beneish M-Score of Crown Castle International Corp was -1.23. The lowest was -5.49. And the median was -2.38.


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 Crown Castle International Corp 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 * 1.0865+0.528 * 1.0296+0.404 * 1.0688+0.892 * 1.2149+0.115 * 1.0005
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9747+4.679 * -0.0603-0.327 * 0.8132
=-2.38

* 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 $312 Mil.
Revenue was 930.025 + 916.345 + 875.95 + 798.419 = $3,521 Mil.
Gross Profit was 585.892 + 575.907 + 575 + 519.784 = $2,257 Mil.
Total Current Assets was $979 Mil.
Total Assets was $20,785 Mil.
Property, Plant and Equipment(Net PPE) was $8,871 Mil.
Depreciation, Depletion and Amortization(DDA) was $961 Mil.
Selling, General & Admin. Expense(SGA) was $273 Mil.
Total Current Liabilities was $846 Mil.
Long-Term Debt was $11,467 Mil.
Net Income was 106.937 + 34.009 + 101.497 + -23.546 = $219 Mil.
Non Operating Income was -20.515 + -50.692 + -23.617 + -24.763 = $-120 Mil.
Cash Flow from Operations was 428.554 + 401.393 + 362.283 + 398.79 = $1,591 Mil.
Accounts Receivable was $236 Mil.
Revenue was 748.977 + 734.928 + 740.06 + 674.087 = $2,898 Mil.
Gross Profit was 485.013 + 485.714 + 485.077 + 456.666 = $1,912 Mil.
Total Current Assets was $1,000 Mil.
Total Assets was $15,568 Mil.
Property, Plant and Equipment(Net PPE) was $6,904 Mil.
Depreciation, Depletion and Amortization(DDA) was $748 Mil.
Selling, General & Admin. Expense(SGA) was $230 Mil.
Total Current Liabilities was $680 Mil.
Long-Term Debt was $10,660 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)
=(311.798 / 3520.739) / (236.211 / 2898.052)
=0.08856038 / 0.08150682
=1.0865

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)
=(575.907 / 2898.052) / (585.892 / 3520.739)
=0.6599157 / 0.64094015
=1.0296

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 - (978.795 + 8870.817) / 20784.86) / (1 - (999.803 + 6904.346) / 15567.572)
=0.52611603 / 0.49226835
=1.0688

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
=3520.739 / 2898.052
=1.2149

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))
=(748.361 / (748.361 + 6904.346)) / (960.985 / (960.985 + 8870.817))
=0.09779036 / 0.09774251
=1.0005

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)
=(272.56 / 3520.739) / (230.171 / 2898.052)
=0.07741557 / 0.07942266
=0.9747

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)
=((11467.005 + 845.567) / 20784.86) / ((10660.076 + 679.718) / 15567.572)
=0.59238176 / 0.72842406
=0.8132

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
=(218.897 - -119.587 - 1591.02) / 20784.86
=-0.0603

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.

Crown Castle International Corp has a M-score of -2.38 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.

Crown Castle International Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.31270.71161.51430.83621.0091.06971.20971.19182.08561.0432
GMI 0.89210.9840.96021.03340.97740.96020.97610.97181.01461.0714
AQI 0.61471.20661.28632.45690.98690.95521.08231.00350.97841.1069
SGI 0.64911.12071.16471.75771.10181.10411.11471.0821.19681.2424
DEPI 0.96550.99710.96820.83091.060.96520.98120.97431.23691.0368
SGAI 1.41580.88880.77730.84870.95040.92680.96910.96971.02380.9038
LVGI 0.78511.32461.25640.81721.02891.0411.05761.00171.09860.7867
TATA 0.0286-0.0786-0.0628-0.0412-0.0428-0.0458-0.0467-0.0443-0.021-0.0489
M-score -3.51-3.02-2.11-1.48-2.59-2.58-2.40-2.45-1.41-2.28

Crown Castle International Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.98121.9262.08562.11921.26861.31311.04320.95791.25451.0865
GMI 0.98440.99311.01461.04421.06071.0761.07141.04511.04211.0296
AQI 0.93151.06670.97841.06620.95790.95311.10691.05761.05881.0688
SGI 1.09761.13361.19681.25681.27631.27221.24241.2051.20551.2149
DEPI 1.22421.03681.23691.16111.03321.00391.03681.03331.01141.0005
SGAI 0.98681.01321.02380.9730.96070.91140.90380.92610.94670.9747
LVGI 1.01180.99421.09861.02351.05461.05110.78670.79970.80540.8132
TATA -0.0338-0.0384-0.0194-0.028-0.04-0.043-0.0499-0.0519-0.0563-0.0603
M-score -1.66-1.66-1.41-1.29-2.17-2.13-2.29-2.45-2.21-2.38
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