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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 -2.61.


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 * 1.1382+0.528 * 1.0248+0.404 * 1.0791+0.892 * 0.905+0.115 * 0.9715
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0511+4.679 * -0.0228-0.327 * 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 + 206.141 = $948 Mil.
Accounts Receivable was $1,133 Mil.
Revenue was 1715.501 + 1727.876 + 2092.467 + 2047.738 = $7,584 Mil.
Gross Profit was 627.159 + 639.781 + 801.842 + 796.417 = $2,865 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 $308 Mil.
Selling, General & Admin. Expense(SGA) was $1,741 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 / 7583.582)
=0.17008581 / 0.14942978
=1.1382

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)
=(613.809 / 7583.582) / (589.264 / 6863.083)
=0.37781605 / 0.36867527
=1.0248

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 / 7583.582
=0.905

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))
=(308.371 / (308.371 + 821.736)) / (335.511 / (335.511 + 858.984))
=0.27286885 / 0.28088104
=0.9715

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) / (1741.117 / 7583.582)
=0.24131954 / 0.22959032
=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 - 948.423) / 8980.895
=-0.0228

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 1.14230.95640.87611.13661.00230.98181.01031.02920.98321.0523
GMI 0.94870.99391.00590.99240.94860.99821.00111.00210.99721.0392
AQI 0.94630.95750.97021.03220.90491.03271.1140.98920.99551.0523
SGI 1.07131.10971.04740.76311.23491.11461.01941.07720.88810.8973
DEPI 1.00470.91990.9350.97020.98721.0350.99120.89260.97870.9696
SGAI 0.97231.02960.98941.16440.90980.97270.98151.0010.99731.0439
LVGI 1.0311.01531.01020.90020.98341.02321.12090.97261.21420.979
TATA -0.0421-0.026-0.054-0.0563-0.0284-0.0192-0.0436-0.0144-0.0227-0.01
M-score -2.54-2.58-2.82-2.82-2.45-2.47-2.65-2.46-2.78-2.53

Dover Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02920.89120.9050.92690.98321.03471.01471.05071.05231.1382
GMI 1.00210.99810.99841.00660.99721.01841.03381.03571.03921.0248
AQI 0.98920.98440.96810.95640.99551.00371.00431.01791.05231.0791
SGI 1.07721.06121.02961.00460.88810.88440.8690.84890.89730.905
DEPI 0.89260.75480.81580.87660.97871.20121.15021.08710.96960.9715
SGAI 1.0010.99780.99610.99660.99731.00771.01991.03661.04391.0511
LVGI 0.97261.09361.08151.12131.21421.04551.04171.03780.9791.0253
TATA -0.0144-0.0124-0.0231-0.0205-0.0227-0.0361-0.0139-0.0087-0.01-0.0228
M-score -2.46-2.65-2.71-2.71-2.78-2.70-2.63-2.59-2.53-2.52
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