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Manitowoc Co Inc (NYSE:MTW)
Beneish M-Score
-2.98 (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 -2.98 suggests that the company is not a manipulator.

MTW' s Beneish M-Score Range Over the Past 10 Years
Min: -4.25   Max: -1.37
Current: -2.98

-4.25
-1.37

During the past 13 years, the highest Beneish M-Score of Manitowoc Co Inc was -1.37. The lowest was -4.25. And the median was -2.51.


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 * 0.8191+0.528 * 1.0091+0.404 * 0.5461+0.892 * 0.9227+0.115 * 0.6055
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9888+4.679 * -0.0338-0.327 * 0.652
=-2.98

* 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 $190 Mil.
Revenue was 457.7 + 427.4 + 934.8 + 863.5 = $2,683 Mil.
Gross Profit was 88.2 + 81.9 + 222.5 + 205.7 = $598 Mil.
Total Current Assets was $850 Mil.
Total Assets was $1,766 Mil.
Property, Plant and Equipment(Net PPE) was $415 Mil.
Depreciation, Depletion and Amortization(DDA) was $104 Mil.
Selling, General & Admin. Expense(SGA) was $430 Mil.
Total Current Liabilities was $483 Mil.
Long-Term Debt was $275 Mil.
Net Income was -4.9 + -204 + 43.8 + 4.8 = $-160 Mil.
Non Operating Income was 1.7 + -71.8 + 19.9 + -2.1 = $-52 Mil.
Cash Flow from Operations was -16.4 + -210.1 + 171.9 + 6.3 = $-48 Mil.
Accounts Receivable was $251 Mil.
Revenue was 477.7 + 406.7 + 1037.4 + 986.3 = $2,908 Mil.
Gross Profit was 94.9 + 75.4 + 240.1 + 243.9 = $654 Mil.
Total Current Assets was $1,281 Mil.
Total Assets was $3,846 Mil.
Property, Plant and Equipment(Net PPE) was $570 Mil.
Depreciation, Depletion and Amortization(DDA) was $79 Mil.
Selling, General & Admin. Expense(SGA) was $471 Mil.
Total Current Liabilities was $970 Mil.
Long-Term Debt was $1,561 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)
=(189.7 / 2683.4) / (251 / 2908.1)
=0.0706939 / 0.08631065
=0.8191

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)
=(654.3 / 2908.1) / (598.3 / 2683.4)
=0.22499226 / 0.2229634
=1.0091

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 - (850.1 + 415.4) / 1765.9) / (1 - (1280.6 + 569.5) / 3845.5)
=0.28336825 / 0.51889221
=0.5461

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
=2683.4 / 2908.1
=0.9227

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))
=(78.5 / (78.5 + 569.5)) / (103.9 / (103.9 + 415.4))
=0.12114198 / 0.20007703
=0.6055

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)
=(430.1 / 2683.4) / (471.4 / 2908.1)
=0.16028173 / 0.16209896
=0.9888

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)
=((275 + 482.9) / 1765.9) / ((1561.4 + 970.1) / 3845.5)
=0.42918625 / 0.65830191
=0.652

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
=(-160.3 - -52.3 - -48.3) / 1765.9
=-0.0338

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 -2.98 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 0.99721.05131.19410.6031.00671.00081.02990.74690.9271.0919
GMI 0.81160.98611.03661.02380.90281.05180.9630.95471.00051.0403
AQI 0.91550.94291.82711.05611.02460.96980.97750.99460.99541.0354
SGI 1.1761.38981.22230.80390.85961.15361.09031.03440.96010.884
DEPI 1.02150.97721.40030.67970.91621.0421.06131.06831.02040.902
SGAI 0.95470.87010.97161.44821.11750.95560.9770.99911.07261.0451
LVGI 0.91080.83251.49381.10210.9970.9810.9790.93220.97261.0052
TATA 0.01950.14290.0148-0.239-0.05210.0024-0.0114-0.04290.0214-0.0161
M-score -2.33-1.37-1.79-4.25-2.91-2.30-2.44-2.88-2.49-2.56

Manitowoc Co Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.86070.93461.06830.9270.92111.08381.21331.398410.8191
GMI 0.94920.9630.98611.00051.06231.13951.14581.13081.07741.0091
AQI 0.99290.97330.9880.99541.02631.03771.02851.03540.5290.5461
SGI 1.0120.99580.97360.96010.860.73080.70450.69030.78510.9227
DEPI 1.10931.13821.06481.02041.02731.16540.91960.9020.70290.6055
SGAI 1.01251.02231.05471.07261.04151.02661.04341.01710.99670.9888
LVGI 0.93570.95150.9590.97260.99250.98661.0041.00520.65650.652
TATA -0.0003-0.0090.00910.0214-0.0205-0.0236-0.0273-0.0153-0.0569-0.0338
M-score -2.60-2.59-2.40-2.49-2.73-2.65-2.60-2.39-3.01-2.98
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