Switch to:
Dover Corp (NYSE:DOV)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

DOV' s 10-Year Beneish M-Score Range
Min: -3.01   Max: -2.04
Current: -2.86

-3.01
-2.04

During the past 13 years, the highest Beneish M-Score of Dover Corp was -2.04. The lowest was -3.01. And the median was -2.61.


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 * 0.9525+0.528 * 1.0011+0.404 * 0.9955+0.892 * 0.9167+0.115 * 0.9787
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9951+4.679 * -0.0201-0.327 * 1.5103
=-2.86

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $1,187 Mil.
Revenue was 1977.947 + 2092.467 + 2047.738 + 1884.647 = $8,003 Mil.
Gross Profit was 723.868 + 801.842 + 796.417 + 736.209 = $3,058 Mil.
Total Current Assets was $2,897 Mil.
Total Assets was $9,090 Mil.
Property, Plant and Equipment(Net PPE) was $837 Mil.
Depreciation, Depletion and Amortization(DDA) was $307 Mil.
Selling, General & Admin. Expense(SGA) was $1,811 Mil.
Total Current Liabilities was $3,086 Mil.
Long-Term Debt was $2,253 Mil.
Net Income was 169.294 + 231.844 + 213.959 + 160.138 = $775 Mil.
Non Operating Income was -1.172 + 0.803 + 6.042 + -0.356 = $5 Mil.
Cash Flow from Operations was 401.952 + 290.243 + 276.785 + -16.164 = $953 Mil.
Accounts Receivable was $1,359 Mil.
Revenue was 3093.214 + 1940.211 + 1932.411 + 1763.977 = $8,730 Mil.
Gross Profit was 1145.998 + 756.347 + 755.818 + 681.618 = $3,340 Mil.
Total Current Assets was $3,240 Mil.
Total Assets was $10,838 Mil.
Property, Plant and Equipment(Net PPE) was $1,183 Mil.
Depreciation, Depletion and Amortization(DDA) was $422 Mil.
Selling, General & Admin. Expense(SGA) was $1,986 Mil.
Total Current Liabilities was $1,616 Mil.
Long-Term Debt was $2,599 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)
=(1186.746 / 8002.799) / (1359.101 / 8729.813)
=0.14829137 / 0.15568501
=0.9525

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)
=(801.842 / 8729.813) / (723.868 / 8002.799)
=0.38257188 / 0.38215829
=1.0011

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 - (2896.822 + 837.069) / 9090.385) / (1 - (3240.162 + 1182.982) / 10838.172)
=0.58924831 / 0.59189206
=0.9955

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
=8002.799 / 8729.813
=0.9167

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))
=(421.616 / (421.616 + 1182.982)) / (307.188 / (307.188 + 837.069))
=0.26275491 / 0.26846067
=0.9787

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)
=(1811.483 / 8002.799) / (1985.849 / 8729.813)
=0.22635618 / 0.22747898
=0.9951

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)
=((2253.041 + 3085.901) / 9090.385) / ((2599.201 + 1615.58) / 10838.172)
=0.58731748 / 0.38888301
=1.5103

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
=(775.235 - 5.317 - 952.816) / 9090.385
=-0.0201

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 -2.86 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 0.85260.99280.92960.87611.13661.17010.85280.99631.02920.9832
GMI 1.00210.9781.00531.00590.99240.91661.02721.00691.00210.9972
AQI 1.22550.94630.95750.97021.03220.90491.06881.07630.98920.9955
SGI 1.14631.23261.14171.04740.76311.05781.20621.09981.07720.8881
DEPI 0.89710.89730.89830.9350.97021.11530.92460.9820.89260.9787
SGAI 0.98050.96681.01890.98941.16440.93820.95140.97311.0010.9973
LVGI 1.03931.0311.01531.01020.90020.98341.00421.14210.97261.5103
TATA -0.0299-0.0422-0.026-0.054-0.0563-0.0279-0.0196-0.0436-0.0144-0.0202
M-score -2.55-2.53-2.57-2.82-2.82-2.46-2.48-2.61-2.46-2.86

Dover Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.98640.99630.97581.02520.99971.02920.84560.81150.78130.9525
GMI 1.02211.00690.99690.98520.98951.00211.00251.011.01621.0011
AQI 1.01351.07631.08521.0591.05280.98920.98440.96810.95640.9955
SGI 1.06861.09981.05351.03351.01821.07721.11841.14831.19180.9167
DEPI 0.92910.9820.95021.02671.07460.89260.67660.64670.60880.9787
SGAI 0.95530.97310.99480.98680.9911.0011.0021.00271.00720.9951
LVGI 0.95861.14211.1551.14251.12760.97261.09361.08151.12131.5103
TATA -0.0111-0.0436-0.0377-0.0313-0.0325-0.0144-0.0127-0.0229-0.0206-0.0201
M-score -2.45-2.61-2.65-2.60-2.63-2.46-2.65-2.70-2.70-2.86
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK