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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.27 (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 -2.27 suggests that the company is not a manipulator.

CCI' s 10-Year Beneish M-Score Range
Min: -4.06   Max: -1.41
Current: -2.27

-4.06
-1.41

During the past 13 years, the highest Beneish M-Score of Crown Castle International Corp was -1.41. The lowest was -4.06. And the median was -2.44.


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 * 1.0432+0.528 * 1.0714+0.404 * 1.1069+0.892 * 1.2424+0.115 * 1.0368
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9038+4.679 * -0.0471-0.327 * 0.7867
=-2.27

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
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.
Net Income was -23.546 + 45.836 + 52.359 + 15.462 = $90 Mil.
Non Operating Income was -103.004 + -0.632 + -0.07 + -73.458 = $-177 Mil.
Cash Flow from Operations was 398.79 + 278.839 + 273.401 + 286.626 = $1,238 Mil.
Accounts Receivable was $193 Mil.
Revenue was 674.087 + 621.337 + 585.511 + 551.745 = $2,433 Mil.
Gross Profit was 456.666 + 435.994 + 413.678 + 397.353 = $1,704 Mil.
Total Current Assets was $1,581 Mil.
Total Assets was $16,089 Mil.
Property, Plant and Equipment(Net PPE) was $6,918 Mil.
Depreciation, Depletion and Amortization(DDA) was $623 Mil.
Selling, General & Admin. Expense(SGA) was $213 Mil.
Total Current Liabilities was $1,238 Mil.
Long-Term Debt was $10,923 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)
=(249.925 / 3022.384) / (192.833 / 2432.68)
=0.08269135 / 0.07926772
=1.0432

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)
=(485.013 / 2432.68) / (519.784 / 3022.384)
=0.70033502 / 0.65365222
=1.0714

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 - (892.683 + 8947.677) / 20594.908) / (1 - (1581.324 + 6917.531) / 16088.709)
=0.52219452 / 0.47175034
=1.1069

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
=3022.384 / 2432.68
=1.2424

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))
=(622.592 / (622.592 + 6917.531)) / (774.215 / (774.215 + 8947.677))
=0.08257054 / 0.07963625
=1.0368

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)
=(238.703 / 3022.384) / (212.572 / 2432.68)
=0.07897838 / 0.08738182
=0.9038

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)
=((11490.914 + 756.387) / 20594.908) / ((10923.186 + 1237.858) / 16088.709)
=0.59467617 / 0.75587445
=0.7867

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
=(90.111 - -177.164 - 1237.656) / 20594.908
=-0.0471

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 -2.27 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.83870.67131.45210.72211.08830.59821.20971.19182.08561.0432
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 -1.98-3.07-2.16-1.58-2.53-3.01-2.40-2.45-1.41-2.28

Crown Castle International Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.0661.19181.37971.98121.9262.08562.11921.26861.31311.0432
GMI 0.97140.97180.97580.98440.99311.01461.04421.06071.0761.0714
AQI 1.03131.00350.96221.06391.06670.97841.06620.95790.95311.1069
SGI 1.10061.0821.07871.09761.13361.19681.25681.27631.27221.2424
DEPI 0.97080.97430.98071.06091.03681.23691.16111.03321.00391.0368
SGAI 0.97810.96970.97670.98681.01321.02380.9730.96070.91140.9038
LVGI 1.02241.00171.05981.01180.99421.09861.02351.05461.05110.7867
TATA -0.0474-0.0467-0.0421-0.0338-0.0384-0.0194-0.028-0.04-0.0444-0.0471
M-score -2.56-2.46-2.30-1.63-1.66-1.41-1.29-2.17-2.14-2.27
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