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Dover Corp (NYSE:DOV)
Beneish M-Score
-2.65 (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.

Dover Corp has a M-score of -2.65 suggests that the company is not a manipulator.

DOV' s 10-Year Beneish M-Score Range
Min: -3.46   Max: -1.76
Current: -2.65

-3.46
-1.76

During the past 13 years, the highest Beneish M-Score of Dover Corp was -1.76. The lowest was -3.46. And the median was -2.60.


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 Dover 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 * 0.8733+0.528 * 1.0445+0.404 * 1.0043+0.892 * 1.0098+0.115 * 0.9414
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0209+4.679 * -0.014-0.327 * 1.0417
=-2.65

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,149 Mil.
Revenue was 1758.628 + 1715.501 + 1727.876 + 2092.467 = $7,294 Mil.
Gross Profit was 654.568 + 627.159 + 639.781 + 801.842 = $2,723 Mil.
Total Current Assets was $2,737 Mil.
Total Assets was $8,467 Mil.
Property, Plant and Equipment(Net PPE) was $828 Mil.
Depreciation, Depletion and Amortization(DDA) was $314 Mil.
Selling, General & Admin. Expense(SGA) was $1,688 Mil.
Total Current Liabilities was $1,614 Mil.
Long-Term Debt was $2,225 Mil.
Net Income was 332.396 + 209.51 + 169.294 + 231.844 = $943 Mil.
Non Operating Income was 1.256 + 4.187 + -0.587 + 0.803 = $6 Mil.
Cash Flow from Operations was 206.141 + 134.049 + 425.06 + 290.262 = $1,056 Mil.
Accounts Receivable was $1,303 Mil.
Revenue was 1962.636 + 1802.57 + 1518.497 + 1940.211 = $7,224 Mil.
Gross Profit was 768.099 + 707.86 + 584.808 + 756.347 = $2,817 Mil.
Total Current Assets was $2,904 Mil.
Total Assets was $8,795 Mil.
Property, Plant and Equipment(Net PPE) was $822 Mil.
Depreciation, Depletion and Amortization(DDA) was $287 Mil.
Selling, General & Admin. Expense(SGA) was $1,637 Mil.
Total Current Liabilities was $1,232 Mil.
Long-Term Debt was $2,596 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)
=(1149.414 / 7294.472) / (1303.431 / 7223.914)
=0.1575733 / 0.1804328
=0.8733

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)
=(627.159 / 7223.914) / (654.568 / 7294.472)
=0.38997059 / 0.37334436
=1.0445

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 - (2737.125 + 827.908) / 8466.817) / (1 - (2903.529 + 821.589) / 8795.074)
=0.57894059 / 0.57645405
=1.0043

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
=7294.472 / 7223.914
=1.0098

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))
=(286.943 / (286.943 + 821.589)) / (313.976 / (313.976 + 827.908))
=0.25884954 / 0.27496313
=0.9414

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)
=(1687.697 / 7294.472) / (1637.092 / 7223.914)
=0.23136657 / 0.22662119
=1.0209

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)
=((2225.063 + 1613.705) / 8466.817) / ((2596.344 + 1231.7) / 8795.074)
=0.45338974 / 0.43524864
=1.0417

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
=(943.044 - 5.659 - 1055.512) / 8466.817
=-0.014

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.

Dover Corp has a M-score of -2.65 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.

Dover Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.85260.99280.92960.87611.13661.17010.85280.99630.99481.0173
GMI 1.00210.9781.00531.00590.99240.91661.02721.00690.98721.0122
AQI 1.22550.94630.95750.97021.03220.90491.06881.07631.13150.8703
SGI 1.14631.23261.14171.04740.76311.05781.20621.09980.88291.0835
DEPI 0.89710.89730.89830.9350.97021.11530.92460.9820.89910.9716
SGAI 0.98050.96681.01890.98941.16440.93820.95140.97310.99441.0039
LVGI 1.03931.0311.01531.01020.90020.98341.00421.14210.90811.3005
TATA -0.0299-0.0422-0.026-0.054-0.0563-0.0279-0.0196-0.0436-0.0142-0.0227
M-score -2.55-2.53-2.57-2.82-2.82-2.46-2.48-2.61-2.59-2.64

Dover Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.97581.02520.99970.99481.04041.00710.96581.03970.87790.8733
GMI 0.99690.98520.98950.98720.98610.99230.99951.00971.03061.0445
AQI 1.08521.0591.05281.13150.98440.96810.95640.87031.00371.0043
SGI 1.05351.03351.01820.88290.9090.92520.96421.06021.04241.0098
DEPI 0.95021.02671.07460.89910.90630.86710.79930.97160.93580.9414
SGAI 0.99480.98680.9910.99440.99630.99761.00211.00491.01221.0209
LVGI 1.1551.14251.12760.90811.09361.08151.12131.30051.04551.0417
TATA -0.0377-0.0313-0.0325-0.0142-0.0141-0.0228-0.0205-0.0228-0.0346-0.014
M-score -2.65-2.60-2.63-2.59-2.64-2.71-2.72-2.65-2.72-2.65
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