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Crane Co (NYSE:CR)
Beneish M-Score
-2.56 (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.

Crane Co has a M-score of -2.56 suggests that the company is not a manipulator.

CR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.45   Max: 30513.62
Current: -2.56

-3.45
30513.62

During the past 13 years, the highest Beneish M-Score of Crane Co was 30513.62. The lowest was -3.45. 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 Crane Co 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 * 1.0079+0.528 * 0.9679+0.404 * 0.9631+0.892 * 0.9843+0.115 * 1.0059
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.137+4.679 * -0.0085-0.327 * 0.9271
=-2.56

* 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 $427 Mil.
Revenue was 694.2 + 712.2 + 660 + 680.5 = $2,747 Mil.
Gross Profit was 245 + 263.1 + 233.9 + 239 = $981 Mil.
Total Current Assets was $1,310 Mil.
Total Assets was $3,409 Mil.
Property, Plant and Equipment(Net PPE) was $283 Mil.
Depreciation, Depletion and Amortization(DDA) was $68 Mil.
Selling, General & Admin. Expense(SGA) was $593 Mil.
Total Current Liabilities was $557 Mil.
Long-Term Debt was $745 Mil.
Net Income was 63.5 + 68.2 + 55 + 65.2 = $252 Mil.
Non Operating Income was -0.1 + -0.3 + -0.3 + -0.5 = $-1 Mil.
Cash Flow from Operations was 116.6 + 69.8 + -18 + 113.6 = $282 Mil.
Accounts Receivable was $430 Mil.
Revenue was 669.9 + 711.2 + 678.8 + 730.7 = $2,791 Mil.
Gross Profit was 238.2 + 240.5 + 236.8 + 249.1 = $965 Mil.
Total Current Assets was $1,240 Mil.
Total Assets was $3,403 Mil.
Property, Plant and Equipment(Net PPE) was $280 Mil.
Depreciation, Depletion and Amortization(DDA) was $68 Mil.
Selling, General & Admin. Expense(SGA) was $529 Mil.
Total Current Liabilities was $652 Mil.
Long-Term Debt was $749 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)
=(426.7 / 2746.9) / (430.1 / 2790.6)
=0.15533875 / 0.15412456
=1.0079

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)
=(964.6 / 2790.6) / (981 / 2746.9)
=0.34566043 / 0.35712986
=0.9679

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 - (1309.9 + 283) / 3409.2) / (1 - (1240.3 + 280.1) / 3402.7)
=0.53276428 / 0.55317836
=0.9631

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
=2746.9 / 2790.6
=0.9843

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))
=(67.7 / (67.7 + 280.1)) / (67.9 / (67.9 + 283))
=0.1946521 / 0.19350242
=1.0059

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)
=(592.5 / 2746.9) / (529.4 / 2790.6)
=0.2156977 / 0.18970831
=1.137

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)
=((745.2 + 556.6) / 3409.2) / ((749.2 + 652.3) / 3402.7)
=0.38184911 / 0.4118788
=0.9271

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
=(251.9 - -1.2 - 282) / 3409.2
=-0.0085

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.

Crane Co has a M-score of -2.56 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.

Crane Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04150.90090.97391.0021.07721.00820.92530.83331.0328
GMI 0.96211.87390.52770.98530.97671.00491.00540.97980.9977
AQI 1.03251.03620.97850.9661.04291.01140.92850.96290.9774
SGI 1.09491.16050.99430.84340.99221.14731.03151.1270.9369
DEPI 1.10450.90381.06330.96930.96460.96891.0310.73551.06
SGAI 1.0291.03331.06730.99630.97890.935201.01880.9956
LVGI 1.09141.80661.00430.49811.03930.98870.96181.01050.9807
TATA -0.0104-0.106-0.0209-0.02070.0071-0.0444-0.0058-0.02140.0001
M-score -2.44-2.73-2.87-2.57-2.39-2.53-2.39-2.68-2.50

Crane Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.12891.02370.83330.88720.90391.00161.03281.04621.05381.0079
GMI 0.99240.98760.97970.99011.00321.00010.99760.98980.95920.9679
AQI 1.18081.18620.96290.97030.98510.96690.97740.9650.9580.9631
SGI 1.09161.13061.1271.07541.02230.97040.93690.94270.95590.9843
DEPI 0.92680.830.73550.86660.93081.0381.061.03821.02691.0059
SGAI -51.6225-35.79291.01881.0010.97850.82540.99571.00511.05411.137
LVGI 1.32841.42881.01051.03481.02821.04030.98070.93380.95720.9271
TATA -0.0164-0.0217-0.0214-0.0232-0.0227-0.01460.00010.00320.0034-0.0085
M-score 6.653.79-2.68-2.67-2.67-2.57-2.50-2.47-2.48-2.56
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