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Dover Corp (NYSE:DOV)
Beneish M-Score
-2.74 (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 -2.74 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: -2.74

-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 -2.61.


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 * 1.0461+0.528 * 1.01+0.404 * 1.0777+0.892 * 0.9601+0.115 * 0.914
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0895+4.679 * -0.0551-0.327 * 1.055
=-2.74

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,199 Mil.
Revenue was 1707.763 + 1686.345 + 1622.273 + 1694.6 = $6,711 Mil.
Gross Profit was 631.788 + 631.213 + 589.264 + 613.809 = $2,466 Mil.
Total Current Assets was $2,739 Mil.
Total Assets was $9,298 Mil.
Property, Plant and Equipment(Net PPE) was $839 Mil.
Depreciation, Depletion and Amortization(DDA) was $355 Mil.
Selling, General & Admin. Expense(SGA) was $1,716 Mil.
Total Current Liabilities was $1,891 Mil.
Long-Term Debt was $2,614 Mil.
Net Income was 130.084 + 118.29 + 99.356 + 141.825 = $490 Mil.
Non Operating Income was 3.424 + 2.854 + 13.522 + 1.295 = $21 Mil.
Cash Flow from Operations was 231.665 + 207.868 + 133.413 + 408.292 = $981 Mil.
Accounts Receivable was $1,194 Mil.
Revenue was 1787.582 + 1758.628 + 1715.501 + 1727.876 = $6,990 Mil.
Gross Profit was 672.608 + 654.568 + 627.159 + 639.781 = $2,594 Mil.
Total Current Assets was $2,815 Mil.
Total Assets was $8,479 Mil.
Property, Plant and Equipment(Net PPE) was $824 Mil.
Depreciation, Depletion and Amortization(DDA) was $307 Mil.
Selling, General & Admin. Expense(SGA) was $1,641 Mil.
Total Current Liabilities was $1,669 Mil.
Long-Term Debt was $2,225 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)
=(1199.137 / 6710.981) / (1193.844 / 6989.587)
=0.17868282 / 0.17080322
=1.0461

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)
=(2594.116 / 6989.587) / (2466.074 / 6710.981)
=0.3711401 / 0.36746848
=1.01

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 - (2738.967 + 839.43) / 9298.283) / (1 - (2814.829 + 824.032) / 8478.82)
=0.61515508 / 0.57082931
=1.0777

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
=6710.981 / 6989.587
=0.9601

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))
=(307.429 / (307.429 + 824.032)) / (355.127 / (355.127 + 839.43))
=0.27170976 / 0.29728761
=0.914

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)
=(1716.266 / 6710.981) / (1640.676 / 6989.587)
=0.25573996 / 0.23473147
=1.0895

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)
=((2613.761 + 1891.071) / 9298.283) / ((2224.943 + 1668.699) / 8478.82)
=0.48447998 / 0.4592198
=1.055

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
=(489.555 - 21.095 - 981.238) / 9298.283
=-0.0551

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 -2.74 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.

Dover Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.99280.92960.87611.13661.00230.98181.01031.02920.98321.0523
GMI 0.9781.00531.00590.99240.94860.99821.00111.00210.99721.0392
AQI 0.94630.95750.97021.03220.90491.03271.1140.98920.99551.0523
SGI 1.23261.14171.04740.76311.23491.11461.01941.07720.88810.8973
DEPI 0.89730.89830.9350.97020.98721.0350.99120.89260.97870.9696
SGAI 0.96681.01890.98941.16440.90980.97270.98151.0010.99731.0439
LVGI 1.0311.01531.01020.90020.98341.02321.12090.97261.21420.979
TATA -0.0422-0.026-0.054-0.0563-0.0284-0.0192-0.0436-0.0144-0.0227-0.01
M-score -2.53-2.57-2.82-2.82-2.45-2.47-2.65-2.46-2.78-2.53

Dover Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.9050.92690.98321.03471.01471.05071.05231.13821.10291.0461
GMI 0.99841.00660.99721.01841.03381.03571.03921.02481.01131.01
AQI 0.96810.95640.99551.00371.00431.01791.05231.07911.10531.0777
SGI 1.02961.00460.88810.88440.8690.84890.89730.9050.9310.9601
DEPI 0.81580.87660.97871.20121.15021.08710.96960.97150.94050.914
SGAI 0.99610.99660.99731.00771.01991.03661.04391.05111.07621.0895
LVGI 1.08151.12131.21421.04551.04171.03780.9791.02531.04331.055
TATA -0.0231-0.0205-0.0227-0.0361-0.0139-0.0087-0.01-0.0228-0.0471-0.0551
M-score -2.71-2.71-2.78-2.70-2.63-2.59-2.53-2.52-2.65-2.74
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