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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.89 (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 -2.89 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: -2.89

-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 * 0.8985+0.528 * 0.9936+0.404 * 1.0196+0.892 * 1.0061+0.115 * 0.9991
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1635+4.679 * -0.0604-0.327 * 1.0596
=-2.89

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $229 Mil.
Revenue was 962.409 + 934.384 + 945.836 + 918.107 = $3,761 Mil.
Gross Profit was 613.69 + 600.792 + 603.831 + 584.248 = $2,403 Mil.
Total Current Assets was $818 Mil.
Total Assets was $22,153 Mil.
Property, Plant and Equipment(Net PPE) was $9,670 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,085 Mil.
Selling, General & Admin. Expense(SGA) was $353 Mil.
Total Current Liabilities was $876 Mil.
Long-Term Debt was $12,326 Mil.
Net Income was 86.058 + 47.84 + 141.066 + 103.779 = $379 Mil.
Non Operating Income was -15.768 + -38.929 + -11.019 + -9.804 = $-76 Mil.
Cash Flow from Operations was 480.525 + 437.656 + 503.149 + 371.998 = $1,793 Mil.
Accounts Receivable was $253 Mil.
Revenue was 899.437 + 941.001 + 967.564 + 930.025 = $3,738 Mil.
Gross Profit was 573.006 + 611.143 + 602.619 + 585.892 = $2,373 Mil.
Total Current Assets was $1,118 Mil.
Total Assets was $21,012 Mil.
Property, Plant and Equipment(Net PPE) was $9,042 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,014 Mil.
Selling, General & Admin. Expense(SGA) was $301 Mil.
Total Current Liabilities was $780 Mil.
Long-Term Debt was $11,037 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)
=(229.015 / 3760.736) / (253.342 / 3738.027)
=0.06089632 / 0.06777426
=0.8985

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)
=(2372.66 / 3738.027) / (2402.561 / 3760.736)
=0.63473592 / 0.63885394
=0.9936

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 - (817.615 + 9670.358) / 22153.074) / (1 - (1117.56 + 9042.284) / 21011.629)
=0.52656805 / 0.51646567
=1.0196

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
=3760.736 / 3738.027
=1.0061

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))
=(1013.597 / (1013.597 + 9042.284)) / (1085.12 / (1085.12 + 9670.358))
=0.10079644 / 0.10088998
=0.9991

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)
=(352.707 / 3760.736) / (301.306 / 3738.027)
=0.09378669 / 0.08060562
=1.1635

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)
=((12325.859 + 875.964) / 22153.074) / ((11036.602 + 780.244) / 21011.629)
=0.59593639 / 0.56239552
=1.0596

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
=(378.743 - -75.52 - 1793.328) / 22153.074
=-0.0604

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 -2.89 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 -0.0634-0.0453-0.0452-0.0458-0.0468-0.0345-0.0278-0.0489-0.055-0.0129
M-score -2.10-1.49-2.60-2.58-2.40-2.40-1.45-2.28-2.47-2.60

Crown Castle International Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.95791.25451.08651.0791.00210.74450.98360.94790.88390.8985
GMI 1.04511.04211.02961.0311.03371.01691.00730.990.99050.9936
AQI 1.05761.05881.06881.0020.9970.98530.99140.99520.99821.0196
SGI 1.2051.20551.21491.22091.18891.11931.05831.00390.98481.0061
DEPI 1.03331.01141.00050.79880.8540.91361.00761.02151.01010.9991
SGAI 0.92610.94670.97470.97011.01951.03671.06291.11471.14221.1635
LVGI 0.79970.80540.81321.01061.02260.94820.98730.98150.95761.0596
TATA -0.0491-0.0535-0.0565-0.0559-0.0602-0.0144-0.0118-0.0129-0.0142-0.0604
M-score -2.44-2.19-2.36-2.48-2.60-2.67-2.50-2.60-2.68-2.89
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