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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.60 (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 -2.60 suggests that the company is not a manipulator.

CCI' s 10-Year Beneish M-Score Range
Min: -5.08   Max: -0.92
Current: -2.6

-5.08
-0.92

During the past 13 years, the highest Beneish M-Score of Crown Castle International Corp was -0.92. The lowest was -5.08. And the median was -2.40.


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 * 1.0021+0.528 * 1.0337+0.404 * 0.997+0.892 * 1.1889+0.115 * 0.854
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0195+4.679 * -0.0602-0.327 * 1.0226
=-2.60

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $293 Mil.
Revenue was 941.001 + 967.564 + 930.025 + 916.345 = $3,755 Mil.
Gross Profit was 611.143 + 602.619 + 585.892 + 575.907 = $2,376 Mil.
Total Current Assets was $928 Mil.
Total Assets was $21,105 Mil.
Property, Plant and Equipment(Net PPE) was $9,140 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,021 Mil.
Selling, General & Admin. Expense(SGA) was $297 Mil.
Total Current Liabilities was $822 Mil.
Long-Term Debt was $11,954 Mil.
Net Income was 122.787 + 148.07 + 106.937 + 34.009 = $412 Mil.
Non Operating Income was -12.459 + 1.807 + -20.515 + -50.692 = $-82 Mil.
Cash Flow from Operations was 460.794 + 473.9 + 428.554 + 401.393 = $1,765 Mil.
Accounts Receivable was $246 Mil.
Revenue was 875.95 + 798.419 + 748.977 + 734.928 = $3,158 Mil.
Gross Profit was 575 + 519.784 + 485.013 + 485.714 = $2,066 Mil.
Total Current Assets was $852 Mil.
Total Assets was $20,570 Mil.
Property, Plant and Equipment(Net PPE) was $8,927 Mil.
Depreciation, Depletion and Amortization(DDA) was $838 Mil.
Selling, General & Admin. Expense(SGA) was $245 Mil.
Total Current Liabilities was $708 Mil.
Long-Term Debt was $11,468 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)
=(292.565 / 3754.935) / (245.556 / 3158.274)
=0.0779148 / 0.07775006
=1.0021

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)
=(602.619 / 3158.274) / (611.143 / 3754.935)
=0.65399994 / 0.63265037
=1.0337

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 - (927.514 + 9139.703) / 21105.477) / (1 - (852.268 + 8927.218) / 20569.666)
=0.52300453 / 0.52456758
=0.997

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
=3754.935 / 3158.274
=1.1889

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))
=(837.947 / (837.947 + 8927.218)) / (1020.933 / (1020.933 + 9139.703))
=0.08580981 / 0.10047924
=0.854

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)
=(297.334 / 3754.935) / (245.306 / 3158.274)
=0.07918486 / 0.07767091
=1.0195

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)
=((11954.093 + 821.955) / 21105.477) / ((11467.859 + 708.272) / 20569.666)
=0.60534277 / 0.59194598
=1.0226

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
=(411.803 - -81.859 - 1764.641) / 21105.477
=-0.0602

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 -2.60 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 2.08562.11921.26861.31311.04320.95791.25451.08651.0791.0021
GMI 1.01461.04421.06071.0761.07141.04511.04211.02961.0311.0337
AQI 0.97841.06620.95790.95311.10691.05761.05881.06881.0020.997
SGI 1.19681.25681.27631.27221.24241.2051.20551.21491.22091.1889
DEPI 1.23691.16111.03321.00391.03681.03331.01141.00050.79880.854
SGAI 1.02380.9730.96070.91140.90380.92610.94670.97470.97011.0195
LVGI 1.09861.02351.05461.05110.78670.79970.80540.81321.01061.0226
TATA -0.0194-0.028-0.04-0.043-0.0499-0.0519-0.0563-0.0603-0.0559-0.0602
M-score -1.41-1.29-2.17-2.13-2.29-2.45-2.21-2.38-2.48-2.60
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