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GuruFocus has detected 8 Warning Signs with Crown Castle International Corp $CCI.
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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

CCI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.06   Max: -1.34
Current: -2.61

-4.06
-1.34

During the past 13 years, the highest Beneish M-Score of Crown Castle International Corp was -1.34. The lowest was -4.06. And the median was -2.54.


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 * 1.114+0.528 * 1.0106+0.404 * 0.9819+0.892 * 1.0702+0.115 * 0.9609
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.115+4.679 * -0.0593-0.327 * 0.9773
=-2.61

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $374 Mil.
Revenue was 1032.416 + 992.016 + 962.409 + 934.384 = $3,921 Mil.
Gross Profit was 640.184 + 626.038 + 613.69 + 600.792 = $2,481 Mil.
Total Current Assets was $1,325 Mil.
Total Assets was $22,675 Mil.
Property, Plant and Equipment(Net PPE) was $9,805 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,109 Mil.
Selling, General & Admin. Expense(SGA) was $371 Mil.
Total Current Liabilities was $961 Mil.
Long-Term Debt was $12,069 Mil.
Net Income was 124.71 + 98.366 + 86.058 + 47.84 = $357 Mil.
Non Operating Income was -11.033 + -15.707 + -15.768 + -38.929 = $-81 Mil.
Cash Flow from Operations was 477.549 + 386.534 + 480.525 + 437.656 = $1,782 Mil.
Accounts Receivable was $313 Mil.
Revenue was 945.836 + 918.107 + 899.437 + 900.471 = $3,664 Mil.
Gross Profit was 603.831 + 584.248 + 573.006 + 581.34 = $2,342 Mil.
Total Current Assets was $981 Mil.
Total Assets was $21,937 Mil.
Property, Plant and Equipment(Net PPE) was $9,580 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,036 Mil.
Selling, General & Admin. Expense(SGA) was $311 Mil.
Total Current Liabilities was $855 Mil.
Long-Term Debt was $12,044 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)
=(373.532 / 3921.225) / (313.296 / 3663.851)
=0.09525901 / 0.08551003
=1.114

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)
=(2342.425 / 3663.851) / (2480.704 / 3921.225)
=0.63933413 / 0.63263495
=1.0106

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 - (1324.761 + 9805.315) / 22675.092) / (1 - (981.245 + 9580.057) / 21936.966)
=0.50914969 / 0.51856141
=0.9819

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
=3921.225 / 3663.851
=1.0702

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))
=(1036.178 / (1036.178 + 9580.057)) / (1108.551 / (1108.551 + 9805.315))
=0.09760315 / 0.10157271
=0.9609

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)
=(371.03 / 3921.225) / (310.921 / 3663.851)
=0.09462094 / 0.0848618
=1.115

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)
=((12069.393 + 961.355) / 22675.092) / ((12043.74 + 855.369) / 21936.966)
=0.57467233 / 0.58800789
=0.9773

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
=(356.974 - -81.437 - 1782.264) / 22675.092
=-0.0593

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 -2.61 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 local exchange's currency.

Crown Castle International Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.83621.0091.06971.20971.19182.08561.10021.01520.96581.114
GMI 1.03340.97740.96020.97610.97181.01461.07051.03710.98661.0106
AQI 2.45750.98690.95521.08231.00350.97841.10690.98521.0080.9819
SGI 1.75771.10181.10411.11471.0821.19681.1781.23481.03531.0702
DEPI 0.83091.060.96520.98120.97431.23691.07920.77371.01320.9609
SGAI 0.84870.95040.92680.96910.96971.02380.85270.97591.16721.115
LVGI 0.81741.02981.04011.05761.00171.09860.78671.01320.97590.9773
TATA -0.0453-0.0452-0.0458-0.0467-0.0345-0.021-0.0456-0.0517-0.0129-0.0592
M-score -1.49-2.60-2.58-2.40-2.40-1.41-2.26-2.51-2.56-2.61

Crown Castle International Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.16311.00550.99410.72420.93950.97520.84690.86980.80881.114
GMI 1.03171.03611.04091.02091.00920.98750.98450.98880.99441.0106
AQI 1.06880.98520.9970.98530.99141.0080.99821.01961.00460.9819
SGI 1.13491.24681.19851.15061.10791.02541.02791.03931.05241.0702
DEPI 1.05340.77370.84840.8830.96291.01320.97490.98610.94450.9609
SGAI 0.9010.98981.03371.07381.12751.15071.19311.20131.18281.115
LVGI 0.81321.01321.02260.94820.98730.97590.95761.05961.03260.9773
TATA -0.054-0.0517-0.0556-0.0131-0.0105-0.013-0.0146-0.0605-0.0611-0.0593
M-score -2.33-2.51-2.58-2.66-2.51-2.56-2.70-2.90-2.94-2.61
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