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Manitowoc Co Inc (NYSE:MTW)
Beneish M-Score
-2.73 (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.

Manitowoc Co Inc has a M-score of -2.73 suggests that the company is not a manipulator.

MTW' s Beneish M-Score Range Over the Past 10 Years
Min: -4.25   Max: -1.38
Current: -2.73

-4.25
-1.38

During the past 13 years, the highest Beneish M-Score of Manitowoc Co Inc was -1.38. The lowest was -4.25. And the median was -2.52.


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 Manitowoc Co Inc 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 * 0.955+0.528 * 1.0472+0.404 * 1.0285+0.892 * 0.895+0.115 * 0.9196
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0812+4.679 * -0.028-0.327 * 1.004
=-2.73

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $259 Mil.
Revenue was 863.5 + 885.4 + 752.1 + 1037.4 = $3,538 Mil.
Gross Profit was 205.7 + 222.5 + 182.5 + 245.7 = $856 Mil.
Total Current Assets was $1,277 Mil.
Total Assets was $3,805 Mil.
Property, Plant and Equipment(Net PPE) was $552 Mil.
Depreciation, Depletion and Amortization(DDA) was $104 Mil.
Selling, General & Admin. Expense(SGA) was $610 Mil.
Total Current Liabilities was $931 Mil.
Long-Term Debt was $1,575 Mil.
Net Income was 4.8 + 23.3 + -8.4 + 33.6 = $53 Mil.
Non Operating Income was -2.1 + 1.9 + 1.4 + -5.2 = $-4 Mil.
Cash Flow from Operations was 6.3 + 55.5 + -135.7 + 237.7 = $164 Mil.
Accounts Receivable was $303 Mil.
Revenue was 986.3 + 1012.8 + 850 + 1104.3 = $3,953 Mil.
Gross Profit was 243.9 + 270.8 + 225.7 + 261.6 = $1,002 Mil.
Total Current Assets was $1,424 Mil.
Total Assets was $4,078 Mil.
Property, Plant and Equipment(Net PPE) was $595 Mil.
Depreciation, Depletion and Amortization(DDA) was $101 Mil.
Selling, General & Admin. Expense(SGA) was $631 Mil.
Total Current Liabilities was $1,003 Mil.
Long-Term Debt was $1,672 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)
=(259 / 3538.4) / (303 / 3953.4)
=0.07319693 / 0.07664289
=0.955

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)
=(222.5 / 3953.4) / (205.7 / 3538.4)
=0.25345272 / 0.2420303
=1.0472

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 - (1277.2 + 551.8) / 3804.8) / (1 - (1423.9 + 595) / 4077.9)
=0.51929142 / 0.50491675
=1.0285

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
=3538.4 / 3953.4
=0.895

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))
=(101.2 / (101.2 + 595)) / (103.6 / (103.6 + 551.8))
=0.14536053 / 0.15807141
=0.9196

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)
=(610.4 / 3538.4) / (630.8 / 3953.4)
=0.17250735 / 0.15955886
=1.0812

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)
=((1575.3 + 931) / 3804.8) / ((1672.1 + 1003.4) / 4077.9)
=0.65872056 / 0.6560975
=1.004

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
=(53.3 - -4 - 163.8) / 3804.8
=-0.028

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.

Manitowoc Co Inc has a M-score of -2.73 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.

Manitowoc Co Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.05131.19410.6031.00671.00081.02990.74690.9271.0919
GMI 0.98611.03661.02380.90281.05180.9630.95470.99481.0463
AQI 0.94291.82711.05611.02460.96980.97750.99460.99541.0354
SGI 1.38981.22230.80390.85961.15361.09031.03440.96010.884
DEPI 0.97721.40030.67970.91621.0421.06131.06831.02042.4321
SGAI 0.87010.97161.44821.11750.95560.9770.99911.08211.036
LVGI 0.83251.49381.10210.9970.9810.9790.93220.97261.0052
TATA 0.14170.0148-0.239-0.05210.0024-0.0114-0.04290.0214-0.0161
M-score -1.38-1.79-4.25-2.91-2.30-2.44-2.88-2.49-2.38

Manitowoc Co Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.79680.74690.86070.93461.06830.9270.83720.86080.9551.0919
GMI 0.94940.95470.94920.9630.98610.99481.02911.04931.04721.0463
AQI 0.99160.99460.99290.97330.9880.99541.02631.03771.02851.0354
SGI 1.07751.03441.0120.99580.97360.96010.94630.92010.8950.884
DEPI 1.0161.06831.10931.13821.06481.02040.91890.91280.91961.0644
SGAI 0.98090.99911.01251.02231.05471.08211.08491.06921.08121.036
LVGI 0.94860.93220.93570.95150.9590.97260.99250.98661.0041.0052
TATA -0.0282-0.0429-0.0003-0.0090.00910.0214-0.0212-0.0243-0.028-0.0161
M-score -2.74-2.88-2.60-2.59-2.40-2.49-2.77-2.77-2.73-2.54
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