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Manitowoc Co Inc (NYSE:MTW)
Beneish M-Score
-3.05 (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 -3.05 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: -3.05

-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 * 0.8689+0.528 * 1.0239+0.404 * 0.529+0.892 * 0.9035+0.115 * 0.7029
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9956+4.679 * -0.0569-0.327 * 0.6565
=-3.05

* 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 $186 Mil.
Revenue was 427.4 + 934.8 + 863.5 + 885.4 = $3,111 Mil.
Gross Profit was 81.9 + 222.5 + 205.7 + 222.5 = $733 Mil.
Total Current Assets was $899 Mil.
Total Assets was $1,820 Mil.
Property, Plant and Equipment(Net PPE) was $417 Mil.
Depreciation, Depletion and Amortization(DDA) was $105 Mil.
Selling, General & Admin. Expense(SGA) was $501 Mil.
Total Current Liabilities was $527 Mil.
Long-Term Debt was $269 Mil.
Net Income was -204 + 43.8 + 4.8 + 23.3 = $-132 Mil.
Non Operating Income was -71.8 + 19.9 + -2.1 + 1.9 = $-52 Mil.
Cash Flow from Operations was -210.1 + 171.9 + 6.3 + 55.5 = $24 Mil.
Accounts Receivable was $236 Mil.
Revenue was 406.7 + 1037.4 + 986.3 + 1012.8 = $3,443 Mil.
Gross Profit was 75.4 + 240.1 + 243.9 + 270.8 = $830 Mil.
Total Current Assets was $1,251 Mil.
Total Assets was $3,817 Mil.
Property, Plant and Equipment(Net PPE) was $566 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $557 Mil.
Total Current Liabilities was $934 Mil.
Long-Term Debt was $1,608 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)
=(185.6 / 3111.1) / (236.4 / 3443.2)
=0.05965736 / 0.06865706
=0.8689

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)
=(830.2 / 3443.2) / (732.6 / 3111.1)
=0.24111292 / 0.23547941
=1.0239

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 - (899 + 416.9) / 1820.4) / (1 - (1251.2 + 566) / 3816.9)
=0.27713689 / 0.52390684
=0.529

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
=3111.1 / 3443.2
=0.9035

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))
=(92.9 / (92.9 + 566)) / (104.6 / (104.6 + 416.9))
=0.14099256 / 0.20057526
=0.7029

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)
=(501.4 / 3111.1) / (557.4 / 3443.2)
=0.16116486 / 0.16188429
=0.9956

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)
=((269.3 + 526.6) / 1820.4) / ((1607.7 + 934.4) / 3816.9)
=0.4372116 / 0.66601168
=0.6565

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
=(-132.1 - -52.1 - 23.6) / 1820.4
=-0.0569

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 -3.05 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 0.90121.07011.29810.5771.04190.99321.04430.74950.9271.0919
GMI 0.84810.96951.0091.03480.89481.06170.96440.94270.99481.0463
AQI 0.91550.94291.82711.05611.02460.96980.97750.99460.99541.0354
SGI 1.30131.36541.12430.840.83061.16241.07531.03080.96010.884
DEPI 1.00280.97571.35450.6950.93521.02921.06881.08531.02040.902
SGAI 0.86270.88561.05631.43791.12690.95660.9810.99271.08211.036
LVGI 0.91080.83251.49381.10210.9970.9810.9790.93220.97261.0052
TATA -0.05260.03520.011-0.239-0.05150.0029-0.0114-0.04290.0214-0.0161
M-score -2.61-1.89-1.83-4.23-2.91-2.29-2.44-2.88-2.49-2.55

Manitowoc Co Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.74690.86070.93461.06830.9270.92110.95051.05831.21390.8689
GMI 0.95470.94920.9630.98611.00051.06231.08721.08821.07381.0239
AQI 0.99460.99290.97330.9880.99541.02631.03771.02851.03540.529
SGI 1.03441.0120.99580.97360.96010.860.83330.80770.79520.9035
DEPI 1.06831.10931.13821.06481.02041.02730.91280.91960.9020.7029
SGAI 0.99911.01251.02231.05471.07261.04151.02491.03811.01180.9956
LVGI 0.93220.93570.95150.9590.97260.99250.98661.0041.00520.6565
TATA -0.0429-0.0003-0.0090.00910.0214-0.0205-0.0236-0.0273-0.0153-0.0569
M-score -2.88-2.60-2.59-2.40-2.49-2.73-2.73-2.68-2.50-3.05
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