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Dover Corp (NYSE:DOV)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

DOV' s 10-Year Beneish M-Score Range
Min: -3.46   Max: -1.76
Current: -2.63

-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 -2.61.


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 * 1.0147+0.528 * 1.0338+0.404 * 1.0043+0.892 * 0.869+0.115 * 1.1502
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0199+4.679 * -0.0139-0.327 * 1.0417
=-2.63

* 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 $308 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 + 290.243 = $1,055 Mil.
Accounts Receivable was $1,303 Mil.
Revenue was 2047.738 + 1884.647 + 2209.128 + 2252.349 = $8,394 Mil.
Gross Profit was 796.417 + 736.209 + 830.557 + 876.65 = $3,240 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 $372 Mil.
Selling, General & Admin. Expense(SGA) was $1,904 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 / 8393.862)
=0.1575733 / 0.15528383
=1.0147

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 / 8393.862) / (654.568 / 7294.472)
=0.38597644 / 0.37334436
=1.0338

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 / 8393.862
=0.869

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))
=(372.137 / (372.137 + 821.589)) / (307.805 / (307.805 + 827.908))
=0.31174407 / 0.27102358
=1.1502

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) / (1904.197 / 8393.862)
=0.23136657 / 0.22685589
=1.0199

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 - 1055.493) / 8466.817
=-0.0139

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 -2.63 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 0.85260.99280.92960.87611.13661.00230.98181.01031.02920.9832
GMI 1.00210.9781.00531.00590.99240.94860.99821.00111.00210.9972
AQI 1.22550.94630.95750.97021.03220.90491.03271.1140.98920.9955
SGI 1.14631.23261.14171.04740.76311.23491.11461.01941.07720.8881
DEPI 0.89710.89730.89830.9350.97020.98721.0350.99120.89260.9787
SGAI 0.98050.96681.01890.98941.16440.90980.97270.98151.0010.9973
LVGI 1.03931.0311.01531.01020.90020.98341.02321.12090.97261.2142
TATA -0.0299-0.0422-0.026-0.054-0.0563-0.0284-0.0192-0.0436-0.0144-0.0227
M-score -2.55-2.53-2.57-2.82-2.82-2.45-2.47-2.65-2.46-2.78

Dover Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.04981.07231.02531.02920.89120.9050.92690.98321.03471.0147
GMI 0.98890.98620.98931.00210.99810.99841.00660.99721.01841.0338
AQI 1.08521.0591.05280.98920.98440.96810.95640.99551.00371.0043
SGI 0.97930.98810.99271.07721.06121.02961.00460.88810.88440.869
DEPI 0.91690.91970.92530.89260.75480.81580.87660.97871.20121.1502
SGAI 1.00290.98970.99221.0010.99780.99610.99660.99731.00771.0199
LVGI 1.1551.14251.12760.97261.09361.08151.12131.21421.04551.0417
TATA -0.038-0.0311-0.0327-0.0144-0.0124-0.0231-0.0205-0.0227-0.0361-0.0139
M-score -2.66-2.61-2.65-2.46-2.65-2.71-2.71-2.78-2.70-2.63
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