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Dover Corp (NYSE:DOV)
Beneish M-Score
-2.65 (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 -2.65 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: -2.65

-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 * 1.1282+0.528 * 1.0092+0.404 * 1.1053+0.892 * 0.9101+0.115 * 0.9541
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0778+4.679 * -0.0471-0.327 * 1.0433
=-2.65

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,180 Mil.
Revenue was 1686.345 + 1622.273 + 1694.6 + 1787.582 = $6,791 Mil.
Gross Profit was 631.213 + 589.264 + 613.809 + 672.608 = $2,507 Mil.
Total Current Assets was $2,380 Mil.
Total Assets was $8,979 Mil.
Property, Plant and Equipment(Net PPE) was $854 Mil.
Depreciation, Depletion and Amortization(DDA) was $346 Mil.
Selling, General & Admin. Expense(SGA) was $1,691 Mil.
Total Current Liabilities was $1,640 Mil.
Long-Term Debt was $2,607 Mil.
Net Income was 118.29 + 99.356 + 141.825 + 186.098 = $546 Mil.
Non Operating Income was 2.854 + 13.522 + 1.295 + 0.367 = $18 Mil.
Cash Flow from Operations was 207.868 + 133.413 + 408.292 + 200.577 = $950 Mil.
Accounts Receivable was $1,149 Mil.
Revenue was 1758.628 + 1715.501 + 1977.947 + 2009.575 = $7,462 Mil.
Gross Profit was 654.568 + 627.159 + 723.868 + 774.422 = $2,780 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 $314 Mil.
Selling, General & Admin. Expense(SGA) was $1,724 Mil.
Total Current Liabilities was $1,614 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)
=(1180.146 / 6790.8) / (1149.414 / 7461.651)
=0.173786 / 0.15404285
=1.1282

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)
=(2780.017 / 7461.651) / (2506.894 / 6790.8)
=0.37257398 / 0.36916033
=1.0092

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 - (2379.756 + 853.584) / 8979.092) / (1 - (2737.125 + 827.908) / 8466.817)
=0.63990346 / 0.57894059
=1.1053

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
=6790.8 / 7461.651
=0.9101

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))
=(313.976 / (313.976 + 827.908)) / (345.578 / (345.578 + 853.584))
=0.27496313 / 0.28818291
=0.9541

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)
=(1690.912 / 6790.8) / (1723.866 / 7461.651)
=0.24900041 / 0.2310301
=1.0778

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)
=((2607.066 + 1640.367) / 8979.092) / ((2225.063 + 1613.705) / 8466.817)
=0.47303591 / 0.45338974
=1.0433

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
=(545.569 - 18.038 - 950.15) / 8979.092
=-0.0471

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 -2.65 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 0.99280.92960.87611.13661.17010.85281.21840.81341.01731.0523
GMI 0.9781.00531.00590.99240.91661.02720.99151.00261.01221.0392
AQI 0.94630.95750.97021.03220.90491.06881.07631.13150.87661.0448
SGI 1.23261.14171.04740.76311.05781.20620.89921.07971.08350.8973
DEPI 0.89730.89830.9350.97021.11530.92461.39930.6310.97160.9696
SGAI 0.96681.01890.98941.16440.93820.95140.98280.98461.00391.0439
LVGI 1.0311.01531.01020.90020.98341.00421.14210.90811.3090.9726
TATA -0.0422-0.026-0.054-0.0563-0.0279-0.0196-0.0430.0017-0.02-0.01
M-score -2.53-2.57-2.82-2.82-2.46-2.48-2.54-2.53-2.63-2.53

Dover Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.84610.81650.78811.01730.85870.85370.89851.05231.15061.1282
GMI 1.00241.01041.0171.01221.03291.04671.05081.03921.02391.0092
AQI 0.98440.96810.95640.87661.00371.00431.01791.04481.07911.1053
SGI 1.11771.14121.18151.08351.06561.03290.99260.89730.89530.9101
DEPI 0.62660.58150.52910.97160.93580.94140.93940.96960.97860.9541
SGAI 0.98540.98730.99391.00391.01091.01951.03081.04391.05111.0778
LVGI 1.09361.08151.12131.3091.04551.04171.03780.97261.02531.0433
TATA 0.0059-0.0031-0.0012-0.02-0.0312-0.0109-0.0056-0.01-0.0231-0.0471
M-score -2.57-2.62-2.62-2.63-2.70-2.63-2.60-2.53-2.52-2.65
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