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Dover Corp (NYSE:DOV)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

DOV' s Beneish M-Score Range Over the Past 10 Years
Min: -4.12   Max: -1.2
Current: -2.52

-4.12
-1.2

During the past 13 years, the highest Beneish M-Score of Dover Corp was -1.20. The lowest was -4.12. And the median was -2.59.


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 * 1.1506+0.528 * 1.0239+0.404 * 1.0791+0.892 * 0.8953+0.115 * 0.9786
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0511+4.679 * -0.0231-0.327 * 1.0253
=-2.52

* 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 $1,167 Mil.
Revenue was 1622.273 + 1694.6 + 1787.582 + 1758.628 = $6,863 Mil.
Gross Profit was 589.264 + 613.809 + 672.608 + 654.568 = $2,530 Mil.
Total Current Assets was $2,346 Mil.
Total Assets was $8,981 Mil.
Property, Plant and Equipment(Net PPE) was $859 Mil.
Depreciation, Depletion and Amortization(DDA) was $336 Mil.
Selling, General & Admin. Expense(SGA) was $1,656 Mil.
Total Current Liabilities was $1,649 Mil.
Long-Term Debt was $2,611 Mil.
Net Income was 99.356 + 141.825 + 186.098 + 332.396 = $760 Mil.
Non Operating Income was 13.522 + 1.295 + 0.367 + 1.256 = $16 Mil.
Cash Flow from Operations was 133.413 + 408.292 + 200.577 + 208.858 = $951 Mil.
Accounts Receivable was $1,133 Mil.
Revenue was 1715.501 + 1977.947 + 2009.575 + 1962.636 = $7,666 Mil.
Gross Profit was 627.159 + 723.868 + 774.422 + 768.099 = $2,894 Mil.
Total Current Assets was $2,672 Mil.
Total Assets was $8,647 Mil.
Property, Plant and Equipment(Net PPE) was $822 Mil.
Depreciation, Depletion and Amortization(DDA) was $311 Mil.
Selling, General & Admin. Expense(SGA) was $1,760 Mil.
Total Current Liabilities was $1,782 Mil.
Long-Term Debt was $2,218 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)
=(1167.313 / 6863.083) / (1133.213 / 7665.659)
=0.17008581 / 0.14782982
=1.1506

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)
=(2893.548 / 7665.659) / (2530.249 / 6863.083)
=0.37746892 / 0.36867527
=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 - (2345.756 + 858.984) / 8980.895) / (1 - (2671.551 + 821.736) / 8646.705)
=0.64316029 / 0.5959979
=1.0791

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
=6863.083 / 7665.659
=0.8953

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))
=(311.497 / (311.497 + 821.736)) / (335.511 / (335.511 + 858.984))
=0.27487463 / 0.28088104
=0.9786

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)
=(1656.196 / 6863.083) / (1759.995 / 7665.659)
=0.24131954 / 0.22959474
=1.0511

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)
=((2610.642 + 1648.809) / 8980.895) / ((2217.874 + 1782.054) / 8646.705)
=0.47427912 / 0.46259564
=1.0253

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
=(759.675 - 16.44 - 951.14) / 8980.895
=-0.0231

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 -2.52 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.14230.95640.87611.13661.00230.92291.07480.81531.24121.0523
GMI 0.94870.99391.00590.99240.94860.99821.00111.00210.99721.0392
AQI 0.94630.95750.97021.03220.90491.06881.07631.13150.87661.0448
SGI 1.07131.10971.04740.76311.23491.11461.01941.07720.88810.8973
DEPI 1.00470.91990.9350.97020.98721.0111.01470.67281.29850.9696
SGAI 0.97231.02960.98941.16440.90980.97270.98151.0010.99731.0439
LVGI 1.0311.01531.01020.90020.98341.00421.14210.90811.3090.9726
TATA -0.0421-0.026-0.054-0.0563-0.0284-0.0192-0.0436-0.0143-0.0229-0.01
M-score -2.54-2.58-2.82-2.82-2.45-2.51-2.61-2.60-2.58-2.53

Dover Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.81340.84610.81650.78811.01730.85870.85370.89851.05231.1506
GMI 1.00261.00241.01041.0171.01221.03291.04671.05081.03921.0239
AQI 1.13150.98440.96810.95640.87661.00371.00431.01791.04481.0791
SGI 1.07971.11771.14121.18151.08351.06561.03290.99260.89730.8953
DEPI 0.6310.62660.58150.52910.97160.93580.94140.93940.96960.9786
SGAI 0.98460.98540.98730.99391.00391.01091.01951.03081.04391.0511
LVGI 0.90811.09361.08151.12131.3091.04551.04171.03780.97261.0253
TATA 0.00170.0059-0.0031-0.0012-0.02-0.0312-0.0109-0.0056-0.01-0.0231
M-score -2.53-2.57-2.62-2.62-2.63-2.70-2.63-2.60-2.53-2.52
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