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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.19 (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 -2.19 signals that the company is a manipulator.

CCI' s 10-Year Beneish M-Score Range
Min: -5.08   Max: -0.92
Current: -2.19

-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 * 1.2545+0.528 * 1.0421+0.404 * 1.0588+0.892 * 1.2055+0.115 * 1.0114
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9467+4.679 * -0.0535-0.327 * 0.8054
=-2.19

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $304 Mil.
Revenue was 916.345 + 875.95 + 798.419 + 748.977 = $3,340 Mil.
Gross Profit was 575.907 + 575 + 519.784 + 485.013 = $2,156 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 $902 Mil.
Selling, General & Admin. Expense(SGA) was $260 Mil.
Total Current Liabilities was $796 Mil.
Long-Term Debt was $11,465 Mil.
Net Income was 34.009 + 101.497 + -23.546 + 45.836 = $158 Mil.
Non Operating Income was -50.692 + -23.617 + -103.004 + -0.632 = $-178 Mil.
Cash Flow from Operations was 401.393 + 362.283 + 398.79 + 278.839 = $1,441 Mil.
Accounts Receivable was $201 Mil.
Revenue was 734.928 + 740.06 + 674.087 + 621.337 = $2,770 Mil.
Gross Profit was 485.714 + 485.077 + 456.666 + 435.994 = $1,863 Mil.
Total Current Assets was $880 Mil.
Total Assets was $15,393 Mil.
Property, Plant and Equipment(Net PPE) was $6,892 Mil.
Depreciation, Depletion and Amortization(DDA) was $708 Mil.
Selling, General & Admin. Expense(SGA) was $228 Mil.
Total Current Liabilities was $644 Mil.
Long-Term Debt was $10,692 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)
=(304.015 / 3339.691) / (201.028 / 2770.412)
=0.09103088 / 0.07256249
=1.2545

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 / 2770.412) / (575.907 / 3339.691)
=0.67262595 / 0.64548008
=1.0421

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 - (947.746 + 8888.426) / 20672.059) / (1 - (880.066 + 6892.277) / 15392.585)
=0.52418034 / 0.49505928
=1.0588

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
=3339.691 / 2770.412
=1.2055

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))
=(707.82 / (707.82 + 6892.277)) / (901.531 / (901.531 + 8888.426))
=0.09313302 / 0.09208733
=1.0114

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)
=(259.669 / 3339.691) / (227.529 / 2770.412)
=0.0777524 / 0.08212822
=0.9467

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)
=((11464.627 + 795.878) / 20672.059) / ((10691.509 + 644.198) / 15392.585)
=0.59309549 / 0.73643946
=0.8054

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
=(157.796 - -177.945 - 1441.305) / 20672.059
=-0.0535

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 -2.19 signals that the company is likely to 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 0.40480.7121.51430.83621.0091.06971.20971.19182.08561.0432
GMI 0.96180.9840.96021.03340.97740.96020.97610.97181.01461.0714
AQI 1.7941.21561.2862.45750.98690.95521.08231.00350.97841.1069
SGI 1.08441.12011.16471.75771.10181.10411.11471.0821.19681.2424
DEPI 1.1150.99740.96950.83091.060.96520.98120.97431.23691.0368
SGAI 0.94651.04130.72170.84870.95040.92680.96910.96971.02380.9038
LVGI 0.73981.32551.25610.81741.02981.04011.05761.00171.09860.7867
TATA 0.0363-0.0779-0.0628-0.0412-0.0452-0.0458-0.0467-0.0443-0.021-0.0489
M-score -2.37-3.04-2.10-1.47-2.60-2.58-2.40-2.45-1.41-2.28

Crown Castle International Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.37971.98121.9262.08562.11921.26861.31311.04320.95791.2545
GMI 0.97580.98440.99311.01461.04421.06071.0761.07141.04511.0421
AQI 0.96221.06391.06670.97841.06620.95790.95311.10691.05761.0588
SGI 1.07871.09761.13361.19681.25681.27631.27221.24241.2051.2055
DEPI 0.98071.06091.03681.23691.16111.03321.00391.03681.03331.0114
SGAI 0.97670.98681.01321.02380.9730.96070.91140.90380.92610.9467
LVGI 1.05981.01180.99421.09861.02351.05461.05110.78670.79970.8054
TATA -0.0421-0.0338-0.0384-0.0194-0.028-0.04-0.0444-0.0471-0.0491-0.0535
M-score -2.30-1.63-1.66-1.41-1.29-2.17-2.14-2.27-2.44-2.19
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