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Crane Co (NYSE:CR)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

CR' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.94
Current: -2.83

-10000000
-1.94

During the past 13 years, the highest Beneish M-Score of Crane Co was -1.94. The lowest was -10000000.00. And the median was -2.55.


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 * 0.8872+0.528 * 0.9902+0.404 * 0.9703+0.892 * 1.0754+0.115 * 0.8674
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.9323+4.679 * -0.0232-0.327 * 1.0348
=-2.83

* 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 $436 Mil.
Revenue was 678.8 + 730.658 + 727.413 + 750.096 = $2,887 Mil.
Gross Profit was 236.8 + 249.02 + 251.122 + 262.065 = $999 Mil.
Total Current Assets was $1,183 Mil.
Total Assets was $3,387 Mil.
Property, Plant and Equipment(Net PPE) was $281 Mil.
Depreciation, Depletion and Amortization(DDA) was $70 Mil.
Selling, General & Admin. Expense(SGA) was $56 Mil.
Total Current Liabilities was $662 Mil.
Long-Term Debt was $749 Mil.
Net Income was 51.1 + 56.212 + 28.079 + 59.697 = $195 Mil.
Non Operating Income was -0.3 + 3.751 + 0.342 + -1.514 = $2 Mil.
Cash Flow from Operations was -11.6 + 150.517 + 68.16 + 64.174 = $271 Mil.
Accounts Receivable was $457 Mil.
Revenue was 716.8 + 681.449 + 637.515 + 648.746 = $2,685 Mil.
Gross Profit was 254.1 + 226.851 + 216.198 + 222.721 = $920 Mil.
Total Current Assets was $1,170 Mil.
Total Assets was $3,553 Mil.
Property, Plant and Equipment(Net PPE) was $304 Mil.
Depreciation, Depletion and Amortization(DDA) was $64 Mil.
Selling, General & Admin. Expense(SGA) was $27 Mil.
Total Current Liabilities was $681 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)
=(436.2 / 2886.967) / (457.18 / 2684.51)
=0.15109283 / 0.17030296
=0.8872

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)
=(249.02 / 2684.51) / (236.8 / 2886.967)
=0.34265844 / 0.34604033
=0.9902

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 - (1182.7 + 281.1) / 3387.3) / (1 - (1170.085 + 303.778) / 3553.345)
=0.5678564 / 0.58521815
=0.9703

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
=2886.967 / 2684.51
=1.0754

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))
=(63.927 / (63.927 + 303.778)) / (70.466 / (70.466 + 281.1))
=0.17385404 / 0.20043463
=0.8674

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)
=(56.207 / 2886.967) / (27.048 / 2684.51)
=0.01946922 / 0.01007558
=1.9323

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)
=((749.2 + 661.6) / 3387.3) / ((749.181 + 680.973) / 3553.345)
=0.41649691 / 0.40248104
=1.0348

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
=(195.088 - 2.279 - 271.251) / 3387.3
=-0.0232

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 -2.83 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.

Crane Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.86171.04150.90090.97391.0021.05851.02610.92531.30440.8332
GMI 0.93580.96211.87390.52770.98530.98960.99181.00540.98990.9798
AQI 0.94641.03251.03620.97850.9661.04291.01140.92851.18610.9629
SGI 1.09041.09491.16050.99430.84341.00981.12741.03151.00631.127
DEPI 0.93071.10450.90381.06330.96930.96460.96891.0311.15440.7361
SGAI 0.9711.0291.03331.06730.99630.96461.00250.92060.04192.552
LVGI 0.96861.09141.80661.00430.49811.03930.98870.96181.26381.0106
TATA -0.0226-0.0104-0.106-0.0209-0.02070.0071-0.0444-0.0058-0.0064-0.0213
M-score -2.68-2.44-2.73-2.87-2.57-2.38-2.55-2.54-2.06-2.95

Crane Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.92930.9150.91820.95661.30441.17171.12891.02370.83320.8872
GMI 1.00540.98610.9770.97970.98990.99240.99240.98760.97980.9902
AQI 0.92850.92610.93510.94331.18611.18741.18081.18620.96290.9703
SGI 1.02711.0060.9930.99011.00631.04821.09161.13061.1271.0754
DEPI 1.0311.01971.07211.06271.15441.00780.92610.83010.73610.8674
SGAI 0.92090.93250.93990.940700.04840.09050.11742.04503588046E+151.9323
LVGI 0.96180.96750.93430.86481.26381.33731.32841.42881.01061.0348
TATA -0.0058-0.0117-0.0048-0.0107-0.0064-0.0093-0.0164-0.0217-0.0213-0.0232
M-score -2.54-2.62-2.58-2.55-2.05-2.20-2.25-2.38-351,746,171,438,809.94-2.83
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