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Manitowoc Co Inc (NYSE:MTW)
Beneish M-Score
-3.49 (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 -3.49 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: -3.49

-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 -2.52.


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 * 0.3606+0.528 * 0.8469+0.404 * 0.5988+0.892 * 1.4187+0.115 * 0.4304
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0063+4.679 * -0.126-0.327 * 0.6917
=-3.49

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $133 Mil.
Revenue was 349.8 + 457.7 + 427.4 + 2113.2 = $3,348 Mil.
Gross Profit was 41.5 + 88.2 + 81.9 + 593 = $805 Mil.
Total Current Assets was $787 Mil.
Total Assets was $1,599 Mil.
Property, Plant and Equipment(Net PPE) was $315 Mil.
Depreciation, Depletion and Amortization(DDA) was $103 Mil.
Selling, General & Admin. Expense(SGA) was $567 Mil.
Total Current Liabilities was $436 Mil.
Long-Term Debt was $293 Mil.
Net Income was -140 + -4.9 + -204 + 43.8 = $-305 Mil.
Non Operating Income was 0 + 1.7 + -71.8 + 24.1 = $-46 Mil.
Cash Flow from Operations was -3 + -16.4 + -210.1 + 171.9 = $-58 Mil.
Accounts Receivable was $259 Mil.
Revenue was 438.2 + 477.7 + 406.7 + 1037.4 = $2,360 Mil.
Gross Profit was 69.9 + 94.9 + 75.4 + 240.1 = $480 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 $65 Mil.
Selling, General & Admin. Expense(SGA) was $397 Mil.
Total Current Liabilities was $931 Mil.
Long-Term Debt was $1,575 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)
=(132.5 / 3348.1) / (259 / 2360)
=0.03957468 / 0.10974576
=0.3606

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)
=(480.3 / 2360) / (804.6 / 3348.1)
=0.20351695 / 0.2403154
=0.8469

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 - (786.6 + 315.3) / 1599.2) / (1 - (1277.2 + 551.8) / 3804.8)
=0.31096798 / 0.51929142
=0.5988

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
=3348.1 / 2360
=1.4187

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))
=(65.2 / (65.2 + 551.8)) / (102.6 / (102.6 + 315.3))
=0.10567261 / 0.24551328
=0.4304

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)
=(566.6 / 3348.1) / (396.9 / 2360)
=0.16923031 / 0.16817797
=1.0063

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)
=((293 + 435.7) / 1599.2) / ((1575.3 + 931) / 3804.8)
=0.45566533 / 0.65872056
=0.6917

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
=(-305.1 - -46 - -57.6) / 1599.2
=-0.126

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 -3.49 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 local exchange's currency.

Manitowoc Co Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.99721.05131.19410.6031.00671.00081.02990.74690.9270.7745
GMI 0.81160.98611.03661.02380.90281.05180.9630.95471.00051.0403
AQI 0.91550.94291.82711.05611.02460.96980.97750.99460.99541.1184
SGI 1.1761.38981.22230.80390.85961.15361.09031.03440.96010.884
DEPI 1.02150.97721.40030.67970.91621.0421.06131.06831.02040.7359
SGAI 0.95470.87010.97161.44821.11750.95560.9770.99911.07261.0451
LVGI 0.91080.83251.49381.10210.9970.9810.9790.93220.97260.9726
TATA 0.01950.14290.0148-0.239-0.05210.0024-0.0114-0.04290.0214-0.0157
M-score -2.33-1.37-1.79-4.25-2.91-2.30-2.44-2.88-2.49-2.82

Manitowoc Co Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.93461.06830.9270.92111.08381.43190.77450.78210.63960.3606
GMI 0.9630.98611.00051.06231.13951.24541.04030.99250.92820.8469
AQI 0.97330.9880.99541.02631.03771.02851.11840.5290.54610.5988
SGI 0.99580.97360.96010.860.73080.5970.8841.00391.18171.4187
DEPI 1.13821.06481.02041.02731.16541.37560.73590.70290.60550.4304
SGAI 1.02231.05471.07261.04151.02661.0541.04511.03171.02541.0063
LVGI 0.95150.9590.97260.99250.98661.0040.97260.65650.6520.6917
TATA -0.0090.00910.0214-0.0205-0.0236-0.0269-0.0157-0.0584-0.0354-0.126
M-score -2.59-2.40-2.49-2.73-2.65-2.39-2.82-3.07-2.97-3.49
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