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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

CCI' s 10-Year Beneish M-Score Range
Min: -4.05   Max: -1.41
Current: -2.48

-4.05
-1.41

During the past 13 years, the highest Beneish M-Score of Crown Castle International Corp was -1.41. The lowest was -4.05. And the median was -2.46.


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 * 1.079+0.528 * 1.031+0.404 * 1.002+0.892 * 1.2209+0.115 * 0.7988
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9701+4.679 * -0.0559-0.327 * 1.0106
=-2.48

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $329 Mil.
Revenue was 967.564 + 930.025 + 916.345 + 875.95 = $3,690 Mil.
Gross Profit was 602.619 + 585.892 + 575.907 + 575 = $2,339 Mil.
Total Current Assets was $932 Mil.
Total Assets was $21,143 Mil.
Property, Plant and Equipment(Net PPE) was $9,148 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,013 Mil.
Selling, General & Admin. Expense(SGA) was $283 Mil.
Total Current Liabilities was $899 Mil.
Long-Term Debt was $11,808 Mil.
Net Income was 148.07 + 106.937 + 34.009 + 101.497 = $391 Mil.
Non Operating Income was 1.807 + -20.515 + -50.692 + -23.617 = $-93 Mil.
Cash Flow from Operations was 473.9 + 428.554 + 401.393 + 362.283 = $1,666 Mil.
Accounts Receivable was $250 Mil.
Revenue was 798.419 + 748.977 + 734.928 + 740.06 = $3,022 Mil.
Gross Profit was 519.784 + 485.013 + 485.714 + 485.077 = $1,976 Mil.
Total Current Assets was $893 Mil.
Total Assets was $20,595 Mil.
Property, Plant and Equipment(Net PPE) was $8,948 Mil.
Depreciation, Depletion and Amortization(DDA) was $774 Mil.
Selling, General & Admin. Expense(SGA) was $239 Mil.
Total Current Liabilities was $756 Mil.
Long-Term Debt was $11,491 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)
=(329.229 / 3689.884) / (249.925 / 3022.384)
=0.08922476 / 0.08269135
=1.079

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)
=(585.892 / 3022.384) / (602.619 / 3689.884)
=0.65365222 / 0.63400855
=1.031

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 - (931.502 + 9148.311) / 21143.276) / (1 - (892.683 + 8947.677) / 20594.908)
=0.52326153 / 0.52219452
=1.002

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
=3689.884 / 3022.384
=1.2209

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))
=(774.215 / (774.215 + 8947.677)) / (1013.064 / (1013.064 + 9148.311))
=0.07963625 / 0.09969753
=0.7988

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)
=(282.696 / 3689.884) / (238.703 / 3022.384)
=0.07661379 / 0.07897838
=0.9701

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)
=((11807.526 + 898.935) / 21143.276) / ((11490.914 + 756.387) / 20594.908)
=0.60096936 / 0.59467617
=1.0106

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
=(390.513 - -93.017 - 1666.13) / 21143.276
=-0.0559

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 -2.48 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 -0.0779-0.0628-0.0412-0.0452-0.0458-0.0467-0.0443-0.021-0.0489-0.055
M-score -3.04-2.10-1.47-2.60-2.58-2.40-2.45-1.41-2.28-2.47

Crown Castle International Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.9262.08562.11921.26861.31311.04320.95791.25451.08651.079
GMI 0.99311.01461.04421.06071.0761.07141.04511.04211.02961.031
AQI 1.06670.97841.06620.95790.95311.10691.05761.05881.06881.002
SGI 1.13361.19681.25681.27631.27221.24241.2051.20551.21491.2209
DEPI 1.03681.23691.16111.03321.00391.03681.03331.01141.00050.7988
SGAI 1.01321.02380.9730.96070.91140.90380.92610.94670.97470.9701
LVGI 0.99421.09861.02351.05461.05110.78670.79970.80540.81321.0106
TATA -0.0384-0.0194-0.028-0.04-0.043-0.0499-0.0519-0.0563-0.0603-0.0559
M-score -1.66-1.41-1.29-2.17-2.13-2.29-2.45-2.21-2.38-2.48
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