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Dover Corp (NYSE:DOV)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

DOV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46   Max: -1.76
Current: -2.61

-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 * 0.8985+0.528 * 1.0508+0.404 * 1.0179+0.892 * 0.9926+0.115 * 0.9394
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0308+4.679 * -0.0086-0.327 * 1.0378
=-2.61

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,194 Mil.
Revenue was 1787.582 + 1758.628 + 1715.501 + 1977.947 = $7,240 Mil.
Gross Profit was 672.608 + 654.568 + 627.159 + 723.868 = $2,678 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 $317 Mil.
Selling, General & Admin. Expense(SGA) was $1,693 Mil.
Total Current Liabilities was $1,669 Mil.
Long-Term Debt was $2,225 Mil.
Net Income was 186.098 + 332.396 + 209.51 + 169.294 = $897 Mil.
Non Operating Income was 0.367 + 1.256 + 4.187 + -1.172 = $5 Mil.
Cash Flow from Operations was 200.577 + 206.141 + 134.049 + 424.772 = $966 Mil.
Accounts Receivable was $1,339 Mil.
Revenue was 2009.575 + 1962.636 + 1802.57 + 1518.497 = $7,293 Mil.
Gross Profit was 774.422 + 768.099 + 707.86 + 584.808 = $2,835 Mil.
Total Current Assets was $3,116 Mil.
Total Assets was $8,959 Mil.
Property, Plant and Equipment(Net PPE) was $819 Mil.
Depreciation, Depletion and Amortization(DDA) was $289 Mil.
Selling, General & Admin. Expense(SGA) was $1,655 Mil.
Total Current Liabilities was $1,394 Mil.
Long-Term Debt was $2,570 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)
=(1193.844 / 7239.658) / (1338.586 / 7293.278)
=0.16490337 / 0.18353695
=0.8985

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)
=(654.568 / 7293.278) / (672.608 / 7239.658)
=0.38874002 / 0.36993502
=1.0508

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 - (2814.829 + 824.032) / 8478.82) / (1 - (3116.331 + 818.73) / 8959.186)
=0.57082931 / 0.56077918
=1.0179

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
=7239.658 / 7293.278
=0.9926

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))
=(288.825 / (288.825 + 818.73)) / (316.669 / (316.669 + 824.032))
=0.26077712 / 0.27760912
=0.9394

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)
=(1693.394 / 7239.658) / (1654.988 / 7293.278)
=0.23390525 / 0.22691964
=1.0308

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)
=((2224.943 + 1668.699) / 8478.82) / ((2570.257 + 1393.964) / 8959.186)
=0.4592198 / 0.44247558
=1.0378

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
=(897.298 - 4.638 - 965.539) / 8478.82
=-0.0086

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 -2.61 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 0.99280.92960.87611.13661.17010.85280.99630.99481.01731.0523
GMI 0.9781.00531.00590.99240.91661.02721.00690.98721.01221.0392
AQI 0.94630.95750.97021.03220.90491.06881.07631.13150.87031.0523
SGI 1.23261.14171.04740.76311.05781.20621.09980.88291.08350.8973
DEPI 0.89730.89830.9350.97021.11530.92460.9820.89910.97160.9696
SGAI 0.96681.01890.98941.16440.93820.95140.97310.99441.00391.0439
LVGI 1.0311.01531.01020.90020.98341.00421.14210.90811.30050.979
TATA -0.0422-0.026-0.054-0.0563-0.0279-0.0196-0.0436-0.0142-0.0227-0.01
M-score -2.53-2.57-2.82-2.82-2.46-2.48-2.61-2.59-2.64-2.53

Dover Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.99970.99481.04041.00710.97681.01730.85870.85370.89851.0523
GMI 0.98950.98720.98610.99230.99781.01221.03291.04671.05081.0392
AQI 1.05281.13150.98440.96810.95640.87031.00371.00431.01791.0523
SGI 1.01820.88290.9090.92520.95331.08351.06561.03290.99260.8973
DEPI 1.07460.89910.90630.86710.81810.97160.93580.94140.93940.9696
SGAI 0.9910.99440.99630.99761.00351.00391.01091.01951.03081.0439
LVGI 1.12760.90811.09361.08151.12131.30051.04551.04171.03780.979
TATA -0.0325-0.0142-0.0141-0.0228-0.0205-0.0227-0.0345-0.0139-0.0086-0.01
M-score -2.63-2.59-2.64-2.71-2.72-2.64-2.72-2.65-2.61-2.53
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