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Crane Co (NYSE:CR)
Beneish M-Score
-2.48 (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 -2.48 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: -2.48

-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 * 1.0538+0.528 * 0.9592+0.404 * 0.958+0.892 * 0.9559+0.115 * 1.0269
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0541+4.679 * 0.0034-0.327 * 0.9572
=-2.48

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $435 Mil.
Revenue was 712.2 + 660 + 680.5 + 669.9 = $2,723 Mil.
Gross Profit was 263.1 + 233.9 + 239 + 238.2 = $974 Mil.
Total Current Assets was $1,309 Mil.
Total Assets was $3,432 Mil.
Property, Plant and Equipment(Net PPE) was $282 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General & Admin. Expense(SGA) was $593 Mil.
Total Current Liabilities was $602 Mil.
Long-Term Debt was $745 Mil.
Net Income was 68.2 + 55 + 65.2 + 56.9 = $245 Mil.
Non Operating Income was -0.3 + -0.3 + -0.5 + -0.3 = $-1 Mil.
Cash Flow from Operations was 69.8 + -18 + 113.6 + 69.7 = $235 Mil.
Accounts Receivable was $432 Mil.
Revenue was 711.2 + 678.8 + 730.7 + 727.4 = $2,848 Mil.
Gross Profit was 240.5 + 236.8 + 249.1 + 251.1 = $978 Mil.
Total Current Assets was $1,224 Mil.
Total Assets was $3,428 Mil.
Property, Plant and Equipment(Net PPE) was $283 Mil.
Depreciation, Depletion and Amortization(DDA) was $70 Mil.
Selling, General & Admin. Expense(SGA) was $588 Mil.
Total Current Liabilities was $656 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)
=(435.2 / 2722.6) / (432 / 2848.1)
=0.1598472 / 0.15168007
=1.0538

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)
=(977.5 / 2848.1) / (974.2 / 2722.6)
=0.34321126 / 0.35781973
=0.9592

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 - (1308.5 + 281.7) / 3432.4) / (1 - (1224.4 + 283.1) / 3428.1)
=0.53670901 / 0.56025203
=0.958

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
=2722.6 / 2848.1
=0.9559

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))
=(69.8 / (69.8 + 283.1)) / (67.2 / (67.2 + 281.7))
=0.19778974 / 0.19260533
=1.0269

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)
=(592.7 / 2722.6) / (588.2 / 2848.1)
=0.21769632 / 0.20652365
=1.0541

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 + 601.6) / 3432.4) / ((749.2 + 655.8) / 3428.1)
=0.39232024 / 0.40984802
=0.9572

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
=(245.3 - -1.4 - 235.1) / 3432.4
=0.0034

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 -2.48 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04150.90090.97391.0021.07721.00820.92530.83331.0328
GMI 0.96211.87390.52770.98530.97671.00491.00540.97980.9977
AQI 1.03251.03620.97850.9661.04291.01140.92850.96290.9785
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 1.09141.80661.00430.49811.03930.98870.96181.01050.9828
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.17161.12891.02370.83330.88720.90391.00161.03281.04621.0538
GMI 0.99240.99240.98760.97970.99011.00321.00010.99760.98980.9592
AQI 1.18741.18081.18620.96290.97030.98510.96690.97850.9650.958
SGI 1.04821.09161.13061.1271.07541.02230.97040.93690.94270.9559
DEPI 1.00830.92680.830.73550.86660.93081.0381.061.03821.0269
SGAI -78.4512-51.6225-35.79291.01881.0010.97850.82540.99571.00511.0541
LVGI 1.33731.32841.42881.01051.03481.02821.04030.98280.93380.9572
TATA -0.0093-0.0164-0.0217-0.0214-0.0232-0.0227-0.01460.00010.00320.0034
M-score 11.316.653.79-2.68-2.67-2.67-2.57-2.50-2.47-2.48
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