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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

CCI' s 10-Year Beneish M-Score Range
Min: -5.08   Max: -0.92
Current: -2.68

-5.08
-0.92

During the past 13 years, the highest Beneish M-Score of Crown Castle International Corp was -0.92. The lowest was -5.08. And the median was -2.40.


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 * 0.736+0.528 * 1.016+0.404 * 0.9853+0.892 * 1.1322+0.115 * 0.8919
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0484+4.679 * -0.0163-0.327 * 0.9482
=-2.68

* 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 $253 Mil.
Revenue was 899.437 + 941.001 + 967.564 + 930.025 = $3,738 Mil.
Gross Profit was 573.006 + 611.143 + 602.619 + 585.892 = $2,373 Mil.
Total Current Assets was $1,118 Mil.
Total Assets was $21,012 Mil.
Property, Plant and Equipment(Net PPE) was $9,042 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,026 Mil.
Selling, General & Admin. Expense(SGA) was $301 Mil.
Total Current Liabilities was $780 Mil.
Long-Term Debt was $11,037 Mil.
Net Income was 1153.36 + 122.787 + 148.07 + 106.937 = $1,531 Mil.
Non Operating Income was 43.724 + -12.459 + 1.807 + -20.515 = $13 Mil.
Cash Flow from Operations was 458.084 + 460.794 + 473.9 + 469.294 = $1,862 Mil.
Accounts Receivable was $304 Mil.
Revenue was 878.242 + 875.95 + 798.419 + 748.977 = $3,302 Mil.
Gross Profit was 549.309 + 575 + 519.784 + 485.013 = $2,129 Mil.
Total Current Assets was $948 Mil.
Total Assets was $20,672 Mil.
Property, Plant and Equipment(Net PPE) was $8,888 Mil.
Depreciation, Depletion and Amortization(DDA) was $889 Mil.
Selling, General & Admin. Expense(SGA) was $254 Mil.
Total Current Liabilities was $796 Mil.
Long-Term Debt was $11,465 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)
=(253.342 / 3738.027) / (304.015 / 3301.588)
=0.06777426 / 0.09208145
=0.736

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)
=(611.143 / 3301.588) / (573.006 / 3738.027)
=0.64487332 / 0.63473592
=1.016

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 - (1117.56 + 9042.284) / 21011.629) / (1 - (947.746 + 8888.426) / 20672.059)
=0.51646567 / 0.52418034
=0.9853

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
=3738.027 / 3301.588
=1.1322

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))
=(888.864 / (888.864 + 8888.426)) / (1026.264 / (1026.264 + 9042.284))
=0.09091108 / 0.10192771
=0.8919

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)
=(301.306 / 3738.027) / (253.834 / 3301.588)
=0.08060562 / 0.0768824
=1.0484

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)
=((11036.602 + 780.244) / 21011.629) / ((11464.627 + 795.878) / 20672.059)
=0.56239552 / 0.59309549
=0.9482

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
=(1531.154 - 12.557 - 1862.072) / 21011.629
=-0.0163

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 -2.68 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.7121.51430.83621.0091.06971.20971.19182.08561.04321.079
GMI 0.9840.96021.03340.97740.96020.97610.97181.01461.07141.031
AQI 1.21561.2862.45750.98690.95521.08231.00350.97841.10691.002
SGI 1.12011.16471.75771.10181.10411.11471.0821.19681.24241.2209
DEPI 0.99740.96950.83091.060.96520.98120.97431.23691.03680.7988
SGAI 1.04130.72170.84870.95040.92680.96910.96971.02380.90380.9701
LVGI 1.32551.25610.81741.02981.04011.05761.00171.09860.78671.0106
TATA -0.0779-0.0628-0.0412-0.0452-0.0458-0.0468-0.0345-0.0278-0.0489-0.055
M-score -3.04-2.10-1.47-2.60-2.58-2.40-2.40-1.45-2.28-2.47

Crown Castle International Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 2.11921.26861.31311.04320.95791.2691.09841.09031.01240.736
GMI 1.04421.06071.0761.07141.04511.0431.03061.03211.03481.016
AQI 1.06620.95790.95311.10691.05761.05881.06881.0020.9970.9853
SGI 1.25681.27631.27221.24241.2051.19171.20171.20821.17691.1322
DEPI 1.16111.03321.00391.03681.03331.02441.00050.79880.8540.8919
SGAI 0.9730.96070.91140.90380.92610.93610.96430.961.00971.0484
LVGI 1.02351.05461.05110.78670.79970.80540.81321.01061.02260.9482
TATA -0.0383-0.0502-0.0561-0.0471-0.0491-0.0505-0.0555-0.055-0.0593-0.0163
M-score -1.33-2.21-2.19-2.27-2.44-2.17-2.36-2.47-2.60-2.68
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