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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

CCI' s Beneish M-Score Range Over the Past 10 Years
Min: -5.08   Max: -0.92
Current: -2.52

-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 -2.41.


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 * 0.9351+0.528 * 1.003+0.404 * 0.9914+0.892 * 1.1132+0.115 * 0.9709
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.12+4.679 * -0.0137-0.327 * 0.9873
=-2.52

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $325 Mil.
Revenue was 918.107 + 899.437 + 941.001 + 1076.996 = $3,836 Mil.
Gross Profit was 584.248 + 573.006 + 611.143 + 678.319 = $2,447 Mil.
Total Current Assets was $1,024 Mil.
Total Assets was $21,996 Mil.
Property, Plant and Equipment(Net PPE) was $9,499 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,041 Mil.
Selling, General & Admin. Expense(SGA) was $325 Mil.
Total Current Liabilities was $825 Mil.
Long-Term Debt was $12,039 Mil.
Net Income was 103.779 + 1153.36 + 122.787 + 148.07 = $1,528 Mil.
Non Operating Income was -9.804 + 43.724 + -12.459 + 1.68 = $23 Mil.
Cash Flow from Operations was 371.998 + 458.084 + 460.794 + 515.204 = $1,806 Mil.
Accounts Receivable was $312 Mil.
Revenue was 892.883 + 878.242 + 875.95 + 798.419 = $3,445 Mil.
Gross Profit was 560.47 + 549.309 + 575 + 519.784 = $2,205 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 $941 Mil.
Selling, General & Admin. Expense(SGA) was $261 Mil.
Total Current Liabilities was $846 Mil.
Long-Term Debt was $11,467 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)
=(324.566 / 3835.541) / (311.798 / 3445.494)
=0.08462066 / 0.09049443
=0.9351

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)
=(573.006 / 3445.494) / (584.248 / 3835.541)
=0.63983945 / 0.63790636
=1.003

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 - (1024.371 + 9498.568) / 21995.644) / (1 - (978.795 + 8870.817) / 20784.86)
=0.52158987 / 0.52611603
=0.9914

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
=3835.541 / 3445.494
=1.1132

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))
=(940.662 / (940.662 + 8870.817)) / (1040.72 / (1040.72 + 9498.568))
=0.09587362 / 0.09874671
=0.9709

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)
=(324.836 / 3835.541) / (260.542 / 3445.494)
=0.08469105 / 0.07561818
=1.12

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)
=((12039.178 + 824.542) / 21995.644) / ((11467.005 + 845.567) / 20784.86)
=0.58483034 / 0.59238176
=0.9873

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
=(1527.996 - 23.141 - 1806.08) / 21995.644
=-0.0137

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 -2.52 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 1.51430.83621.0091.06971.20971.19182.08561.04321.0790.9584
GMI 0.96021.03340.97740.96020.97610.97181.01461.07141.0310.9917
AQI 1.2862.45750.98690.95521.08231.00350.97841.10691.0020.9952
SGI 1.16471.75771.10181.10411.11471.0821.19681.24241.22090.9929
DEPI 0.96950.83091.060.96520.98120.97431.23691.03680.79881.0215
SGAI 0.72170.84870.95040.92680.96910.96971.02380.90380.97011.1077
LVGI 1.25610.81741.02981.04011.05761.00171.09860.78671.01060.9815
TATA -0.0628-0.0412-0.0452-0.0458-0.0467-0.0443-0.021-0.0489-0.055-0.0148
M-score -2.10-1.47-2.60-2.58-2.40-2.45-1.41-2.28-2.47-2.61

Crown Castle International Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.31311.04320.95791.2691.11031.06910.99310.72210.93510.9567
GMI 1.0761.07141.04511.0431.03141.03011.03291.01411.0030.9909
AQI 0.95311.10691.05761.05881.06881.0020.9970.98530.99140.9952
SGI 1.27221.24241.2051.19171.18891.23221.19971.15411.11320.9947
DEPI 1.00391.03681.03331.02441.020.79880.8540.89190.97091.0215
SGAI 0.91140.90380.92610.93610.95210.98231.03141.06961.121.1008
LVGI 1.05110.78670.79970.80540.81321.01061.02260.94820.98730.9815
TATA -0.043-0.0499-0.0519-0.0533-0.0573-0.055-0.0592-0.0163-0.0137-0.0133
M-score -2.13-2.29-2.45-2.19-2.36-2.47-2.60-2.68-2.52-2.60
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