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GuruFocus has detected 7 Warning Signs with Crown Castle International Corp $CCI.
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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.94 (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 -2.94 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: -2.94

-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 -2.49.


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 * 0.8088+0.528 * 0.9944+0.404 * 1.0046+0.892 * 1.0524+0.115 * 0.9445
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1828+4.679 * -0.0611-0.327 * 1.0326
=-2.94

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $276 Mil.
Revenue was 992.016 + 962.409 + 934.384 + 945.836 = $3,835 Mil.
Gross Profit was 626.038 + 613.69 + 600.792 + 603.831 = $2,444 Mil.
Total Current Assets was $840 Mil.
Total Assets was $22,172 Mil.
Property, Plant and Equipment(Net PPE) was $9,714 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,104 Mil.
Selling, General & Admin. Expense(SGA) was $366 Mil.
Total Current Liabilities was $898 Mil.
Long-Term Debt was $12,492 Mil.
Net Income was 98.366 + 86.058 + 47.84 + 141.066 = $373 Mil.
Non Operating Income was -15.707 + -15.768 + -38.929 + -9.21 = $-80 Mil.
Cash Flow from Operations was 386.534 + 480.525 + 437.656 + 503.149 = $1,808 Mil.
Accounts Receivable was $325 Mil.
Revenue was 918.107 + 899.437 + 900.471 + 925.868 = $3,644 Mil.
Gross Profit was 584.248 + 573.006 + 581.34 + 571.051 = $2,310 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 $1,013 Mil.
Selling, General & Admin. Expense(SGA) was $294 Mil.
Total Current Liabilities was $825 Mil.
Long-Term Debt was $12,039 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)
=(276.259 / 3834.645) / (324.566 / 3643.883)
=0.07204291 / 0.08907147
=0.8088

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)
=(2309.645 / 3643.883) / (2444.351 / 3834.645)
=0.6338417 / 0.63743867
=0.9944

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 - (839.675 + 9714.149) / 22171.723) / (1 - (1024.371 + 9498.568) / 21995.644)
=0.52399622 / 0.52158987
=1.0046

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
=3834.645 / 3643.883
=1.0524

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))
=(1013.437 / (1013.437 + 9498.568)) / (1104.282 / (1104.282 + 9714.149))
=0.09640758 / 0.10207414
=0.9445

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)
=(365.949 / 3834.645) / (294.005 / 3643.883)
=0.0954323 / 0.08068453
=1.1828

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)
=((12491.596 + 897.738) / 22171.723) / ((12039.178 + 824.542) / 21995.644)
=0.60389235 / 0.58483034
=1.0326

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
=(373.33 - -79.614 - 1807.864) / 22171.723
=-0.0611

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 -2.94 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.51430.83621.0091.06971.20971.19182.08561.10021.01520.9658
GMI 0.96021.03340.97740.96020.97610.97181.01461.07051.03710.9866
AQI 1.2862.45750.98690.95521.08231.00350.97841.10690.98521.0122
SGI 1.16471.75771.10181.10411.11471.0821.19681.1781.23481.0353
DEPI 0.96950.83091.060.96520.98120.97431.23691.07920.77371.0132
SGAI 0.72170.84870.95040.92680.96910.96971.02380.85270.97591.1672
LVGI 1.25610.81741.02981.04011.05761.00171.09860.78671.01320.979
TATA -0.0634-0.0453-0.0452-0.0458-0.0467-0.0345-0.021-0.0456-0.0517-0.0129
M-score -2.10-1.49-2.60-2.58-2.40-2.40-1.41-2.26-2.51-2.56

Crown Castle International Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.33221.16311.00550.99410.72420.93950.97520.84690.86980.8088
GMI 1.0431.03171.03611.04091.02091.00920.98750.98450.98880.9944
AQI 1.05881.06880.98520.9970.98530.99141.01220.99821.01961.0046
SGI 1.13521.13491.24681.19851.15061.10791.02541.02791.03931.0524
DEPI 1.06021.05340.77370.84840.8830.96291.01320.97490.98610.9445
SGAI 0.88530.9010.98981.03371.07381.12751.15071.19311.20131.1828
LVGI 0.80540.81321.01321.02260.94820.98730.9790.95761.05961.0326
TATA -0.05-0.054-0.0517-0.0556-0.0131-0.0105-0.0129-0.0146-0.0605-0.0611
M-score -2.15-2.33-2.51-2.58-2.66-2.51-2.56-2.70-2.90-2.94
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