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GuruFocus has detected 9 Warning Signs with Crown Castle International Corp $CCI.
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Crown Castle International Corp (NYSE:CCI)
Beneish M-Score
-2.58 (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.

Crown Castle International Corp has a M-score of -2.58 suggests that the company is not a manipulator.

CCI' s Beneish M-Score Range Over the Past 10 Years
Min: -5.32   Max: -1.27
Current: -2.58

-5.32
-1.27

During the past 13 years, the highest Beneish M-Score of Crown Castle International Corp was -1.27. The lowest was -5.32. 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 Crown Castle International Corp 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 * 1.098+0.528 * 1.0097+0.404 * 1.0124+0.892 * 1.0825+0.115 * 1.0198
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0335+4.679 * -0.0554-0.327 * 1.0362
=-2.58

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $303 Mil.
Revenue was 1015.942 + 1032.416 + 992.016 + 962.409 = $4,003 Mil.
Gross Profit was 652.117 + 640.184 + 626.038 + 613.69 = $2,532 Mil.
Total Current Assets was $916 Mil.
Total Assets was $23,777 Mil.
Property, Plant and Equipment(Net PPE) was $10,294 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,119 Mil.
Selling, General & Admin. Expense(SGA) was $374 Mil.
Total Current Liabilities was $902 Mil.
Long-Term Debt was $13,380 Mil.
Net Income was 119.138 + 124.71 + 98.366 + 86.058 = $428 Mil.
Non Operating Income was -3.476 + -11.033 + -15.707 + -15.768 = $-46 Mil.
Cash Flow from Operations was 446.092 + 477.549 + 386.534 + 480.525 = $1,791 Mil.
Accounts Receivable was $255 Mil.
Revenue was 934.384 + 945.836 + 918.107 + 899.437 = $3,698 Mil.
Gross Profit was 600.792 + 603.831 + 584.248 + 573.006 = $2,362 Mil.
Total Current Assets was $821 Mil.
Total Assets was $21,718 Mil.
Property, Plant and Equipment(Net PPE) was $9,559 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,062 Mil.
Selling, General & Admin. Expense(SGA) was $334 Mil.
Total Current Liabilities was $812 Mil.
Long-Term Debt was $11,778 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)
=(302.697 / 4002.783) / (254.669 / 3697.764)
=0.07562164 / 0.06887108
=1.098

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)
=(2361.877 / 3697.764) / (2532.029 / 4002.783)
=0.63873114 / 0.63256714
=1.0097

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 - (916.449 + 10293.693) / 23776.842) / (1 - (820.882 + 9559.397) / 21718.251)
=0.52852688 / 0.52204812
=1.0124

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
=4002.783 / 3697.764
=1.0825

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))
=(1062.247 / (1062.247 + 9559.397)) / (1119.225 / (1119.225 + 10293.693))
=0.10000778 / 0.09806651
=1.0198

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)
=(374.173 / 4002.783) / (334.446 / 3697.764)
=0.09347821 / 0.09044547
=1.0335

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)
=((13380.091 + 902.195) / 23776.842) / ((11778.176 + 811.946) / 21718.251)
=0.60068053 / 0.57970239
=1.0362

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
=(428.272 - -45.984 - 1790.7) / 23776.842
=-0.0554

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.

Crown Castle International Corp has a M-score of -2.58 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.

Crown Castle International Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.83621.0091.06971.20971.19182.08561.10021.00550.97521.114
GMI 1.03340.97740.96020.97610.97181.01461.07051.03610.98751.0106
AQI 2.45750.98690.95521.08231.00350.97841.10690.98521.0080.9819
SGI 1.75771.10181.10411.11471.0821.19681.1781.24681.02541.0702
DEPI 0.83091.060.96520.98120.97431.23691.07920.77371.01320.9609
SGAI 0.87610.96470.92680.96910.96971.02380.85270.98981.15071.115
LVGI 0.81741.02981.04011.05761.00171.09860.78671.01320.97590.9773
TATA -0.0453-0.0452-0.0461-0.0467-0.0369-0.0194-0.0466-0.0517-0.013-0.0593
M-score -1.50-2.61-2.58-2.40-2.41-1.41-2.26-2.51-2.56-2.61

Crown Castle International Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.00550.99410.72420.93950.97520.84690.86980.80881.1141.098
GMI 1.03611.04091.02091.00920.98750.98450.98880.99441.01061.0097
AQI 0.98520.9970.98530.99141.0080.99821.01961.00460.98191.0124
SGI 1.24681.19851.15061.10791.02541.02791.03931.05241.07021.0825
DEPI 0.77370.84840.8830.96291.01320.97490.98610.94450.96091.0198
SGAI 0.98981.03371.07381.12751.15071.19311.20131.18281.1151.0335
LVGI 1.01321.02260.94820.98730.97590.95761.05961.03260.97731.0362
TATA -0.0517-0.0556-0.0131-0.0105-0.013-0.0146-0.0605-0.0611-0.0593-0.0554
M-score -2.51-2.58-2.66-2.51-2.56-2.70-2.90-2.94-2.61-2.58
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