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Crane Co (NYSE:CR)
Beneish M-Score
-2.47 (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 -2.47 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: -2.47

-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 * 1.0462+0.528 * 0.9898+0.404 * 0.965+0.892 * 0.9427+0.115 * 1.0382
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0051+4.679 * 0.0032-0.327 * 0.9338
=-2.47

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $430 Mil.
Revenue was 660 + 680.5 + 669.9 + 711.2 = $2,722 Mil.
Gross Profit was 233.9 + 239 + 238.2 + 240.5 = $952 Mil.
Total Current Assets was $1,255 Mil.
Total Assets was $3,395 Mil.
Property, Plant and Equipment(Net PPE) was $280 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General & Admin. Expense(SGA) was $574 Mil.
Total Current Liabilities was $576 Mil.
Long-Term Debt was $745 Mil.
Net Income was 55 + 65.2 + 56.9 + 55.8 = $233 Mil.
Non Operating Income was -0.3 + -0.5 + -0.3 + 0.4 = $-1 Mil.
Cash Flow from Operations was -18 + 113.6 + 69.7 + 57.6 = $223 Mil.
Accounts Receivable was $436 Mil.
Revenue was 678.8 + 730.7 + 727.4 + 750.1 = $2,887 Mil.
Gross Profit was 236.8 + 249.1 + 251.1 + 262.1 = $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 $71 Mil.
Selling, General & Admin. Expense(SGA) was $606 Mil.
Total Current Liabilities was $662 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)
=(430.2 / 2721.6) / (436.2 / 2887)
=0.15806878 / 0.1510911
=1.0462

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)
=(239 / 2887) / (233.9 / 2721.6)
=0.34606858 / 0.34964727
=0.9898

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 - (1254.7 + 279.9) / 3395) / (1 - (1182.7 + 281.1) / 3387.3)
=0.54798233 / 0.5678564
=0.965

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
=2721.6 / 2887
=0.9427

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))
=(70.5 / (70.5 + 281.1)) / (67 / (67 + 279.9))
=0.20051195 / 0.19313923
=1.0382

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)
=(573.9 / 2721.6) / (605.7 / 2887)
=0.21086861 / 0.20980256
=1.0051

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)
=((744.8 + 575.6) / 3395) / ((749.2 + 661.6) / 3387.3)
=0.38892489 / 0.41649691
=0.9338

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
=(232.9 - -0.7 - 222.9) / 3395
=0.0032

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 -2.47 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 1.04150.90090.97391.0021.05851.00770.94211.30440.83331.0328
GMI 0.96211.00670.98240.98530.98960.99151.00560.98990.97980.9977
AQI 1.03251.03620.97850.9661.04291.01140.92851.18610.96290.9785
SGI 1.09491.16050.99430.84341.00981.14791.0131.00631.1270.9369
DEPI 1.10450.90381.06330.96930.96460.96891.0311.15440.73621.0596
SGAI 1.0291.03331.06730.99630.96461.00180.92120.98530.10869.3409
LVGI 1.09141.80661.00430.49811.03930.98870.96181.26381.01050.9828
TATA -0.0104-0.106-0.021-0.02070.0071-0.0444-0.0058-0.0064-0.02130.0001
M-score -2.44-3.19-2.63-2.57-2.38-2.55-2.55-2.22-2.53-3.94

Crane Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.30441.17161.12891.02370.83330.88720.90391.00161.03281.0462
GMI 0.98990.99240.99240.98760.97970.99011.00321.00010.99760.9898
AQI 1.18611.18741.18081.18620.96290.97030.98510.96690.97850.965
SGI 1.00631.04821.09161.13061.1271.07541.02230.97040.93690.9427
DEPI 1.15511.00830.92680.830.73550.86660.93081.0381.061.0382
SGAI -177416.7175-78.4512-51.6225-35.79291.01881.0010.97850.82540.99571.0051
LVGI 1.26381.33731.32841.42881.01051.03481.02821.04030.98280.9338
TATA -0.0063-0.0093-0.0164-0.0217-0.0214-0.0232-0.0227-0.01470.00010.0032
M-score 30,513.6311.316.653.79-2.68-2.67-2.67-2.57-2.50-2.47
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