Switch to:
Crane Co (NYSE:CR)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

CR' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.94
Current: -2.63

-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 * 0.9039+0.528 * 1.0033+0.404 * 0.9851+0.892 * 1.0223+0.115 * 0.9316
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7236+4.679 * -0.0227-0.327 * 1.0282
=-2.63

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $432 Mil.
Revenue was 711.2 + 678.8 + 730.658 + 727.413 = $2,848 Mil.
Gross Profit was 240.5 + 236.8 + 249.02 + 251.122 = $977 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 $39 Mil.
Total Current Liabilities was $656 Mil.
Long-Term Debt was $749 Mil.
Net Income was 55.8 + 51.1 + 56.212 + 28.079 = $191 Mil.
Non Operating Income was 0.4 + -0.3 + 3.751 + 0.342 = $4 Mil.
Cash Flow from Operations was 57.6 + -11.6 + 150.517 + 68.134 = $265 Mil.
Accounts Receivable was $467 Mil.
Revenue was 750.1 + 716.8 + 681.449 + 637.515 = $2,786 Mil.
Gross Profit was 262.1 + 254.1 + 226.851 + 216.198 = $959 Mil.
Total Current Assets was $1,261 Mil.
Total Assets was $3,633 Mil.
Property, Plant and Equipment(Net PPE) was $306 Mil.
Depreciation, Depletion and Amortization(DDA) was $69 Mil.
Selling, General & Admin. Expense(SGA) was $52 Mil.
Total Current Liabilities was $699 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)
=(432 / 2848.071) / (467.497 / 2785.864)
=0.15168161 / 0.16781042
=0.9039

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)
=(236.8 / 2785.864) / (240.5 / 2848.071)
=0.34432729 / 0.34319439
=1.0033

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 - (1224.4 + 283.1) / 3428.1) / (1 - (1261.093 + 305.681) / 3632.763)
=0.56025203 / 0.5687101
=0.9851

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
=2848.071 / 2785.864
=1.0223

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))
=(69.013 / (69.013 + 305.681)) / (69.766 / (69.766 + 283.1))
=0.18418496 / 0.19771245
=0.9316

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)
=(38.743 / 2848.071) / (52.373 / 2785.864)
=0.01360324 / 0.01879955
=0.7236

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 + 655.8) / 3428.1) / ((749.192 + 698.79) / 3632.763)
=0.40984802 / 0.39858972
=1.0282

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
=(191.191 - 4.193 - 264.651) / 3428.1
=-0.0227

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 -2.63 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.9150.91820.95661.30441.17171.12891.02370.83320.88720.9039
GMI 0.98610.9770.97970.98990.99240.99230.98750.97970.99021.0033
AQI 0.92610.93510.94331.18611.18741.18081.18620.96290.97030.9851
SGI 1.0060.9930.99011.00631.04821.09161.13061.1271.07541.0223
DEPI 1.01971.07211.06271.15441.00780.92640.83010.73610.86740.9316
SGAI 0.93250.93990.940700.04840.09060.11752.04615695134E+151.93360.7236
LVGI 0.96750.93430.86481.26381.33731.32841.42881.01061.03481.0282
TATA -0.0117-0.0048-0.0107-0.0064-0.0093-0.0164-0.0217-0.0213-0.0232-0.0227
M-score -2.62-2.58-2.55-2.05-2.20-2.25-2.38-351,938,995,630,709.75-2.83-2.63
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK