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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.70 (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 -2.70 suggests that the company is not a manipulator.

CCI' s Beneish M-Score Range Over the Past 10 Years
Min: -5.32   Max: -1.27
Current: -2.7

-5.32
-1.27

During the past 13 years, the highest Beneish M-Score of Crown Castle International Corp was -1.27. The lowest was -5.32. And the median was -2.45.


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 * 0.8469+0.528 * 0.9845+0.404 * 0.9982+0.892 * 1.0279+0.115 * 0.9749
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1931+4.679 * -0.0146-0.327 * 0.9576
=-2.70

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $255 Mil.
Revenue was 934.384 + 945.836 + 918.107 + 899.437 = $3,698 Mil.
Gross Profit was 600.792 + 603.831 + 584.248 + 573.006 = $2,362 Mil.
Total Current Assets was $821 Mil.
Total Assets was $21,718 Mil.
Property, Plant and Equipment(Net PPE) was $9,559 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,062 Mil.
Selling, General & Admin. Expense(SGA) was $334 Mil.
Total Current Liabilities was $812 Mil.
Long-Term Debt was $11,778 Mil.
Net Income was 47.84 + 141.066 + 103.779 + 1153.36 = $1,446 Mil.
Non Operating Income was -38.929 + -11.019 + -9.804 + 43.724 = $-16 Mil.
Cash Flow from Operations was 437.656 + 503.149 + 371.998 + 465.82 = $1,779 Mil.
Accounts Receivable was $293 Mil.
Revenue was 900.471 + 925.868 + 892.883 + 878.242 = $3,597 Mil.
Gross Profit was 581.34 + 571.051 + 560.47 + 549.309 = $2,262 Mil.
Total Current Assets was $928 Mil.
Total Assets was $21,105 Mil.
Property, Plant and Equipment(Net PPE) was $9,140 Mil.
Depreciation, Depletion and Amortization(DDA) was $987 Mil.
Selling, General & Admin. Expense(SGA) was $273 Mil.
Total Current Liabilities was $822 Mil.
Long-Term Debt was $11,954 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)
=(254.669 / 3697.764) / (292.565 / 3597.464)
=0.06887108 / 0.08132534
=0.8469

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)
=(2262.17 / 3597.464) / (2361.877 / 3697.764)
=0.62882353 / 0.63873114
=0.9845

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 - (820.882 + 9559.397) / 21718.251) / (1 - (927.514 + 9139.703) / 21105.477)
=0.52204812 / 0.52300453
=0.9982

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
=3697.764 / 3597.464
=1.0279

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))
=(987.396 / (987.396 + 9139.703)) / (1062.247 / (1062.247 + 9559.397))
=0.09750038 / 0.10000778
=0.9749

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)
=(334.446 / 3697.764) / (272.711 / 3597.464)
=0.09044547 / 0.07580646
=1.1931

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)
=((11778.176 + 811.946) / 21718.251) / ((11954.093 + 821.955) / 21105.477)
=0.57970239 / 0.60534277
=0.9576

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
=(1446.045 - -16.028 - 1778.623) / 21718.251
=-0.0146

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 -2.70 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.51430.83621.0091.06971.20971.19182.08561.04321.02681.0071
GMI 0.96021.03340.97740.96020.97610.97181.01461.07141.0310.9917
AQI 1.2862.45750.98690.95521.08231.00350.97841.10690.98521.0122
SGI 1.16471.75771.10181.10411.11471.0821.19681.24241.22090.9929
DEPI 0.96820.83091.060.96520.98120.97431.23691.03680.78581.0384
SGAI 0.77730.84870.95040.92680.96910.96971.02380.90380.97011.1077
LVGI 1.25610.81741.02981.04011.05761.00171.09860.78671.01320.979
TATA -0.0634-0.0453-0.0428-0.0458-0.0468-0.0345-0.0278-0.0489-0.055-0.0129
M-score -2.11-1.49-2.59-2.58-2.40-2.40-1.45-2.28-2.53-2.55

Crown Castle International Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.10021.00791.33221.16311.00550.99410.72420.93950.97520.8469
GMI 1.07051.04421.0431.03171.03611.04091.02091.00920.98750.9845
AQI 1.10691.05761.05881.06880.98520.9970.98530.99141.01220.9982
SGI 1.1781.14521.13521.13491.24681.19851.15061.10791.02541.0279
DEPI 1.07921.07191.06021.05340.77370.84840.8830.96291.01320.9749
SGAI 0.85270.87440.88530.9010.98981.03371.07381.12751.15071.1931
LVGI 0.78670.79970.80540.81321.01321.02260.94820.98730.9790.9576
TATA -0.0466-0.0486-0.05-0.054-0.0517-0.0556-0.0131-0.0106-0.0129-0.0146
M-score -2.26-2.43-2.15-2.33-2.51-2.58-2.66-2.51-2.56-2.70
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