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Dover Corp (NYSE:DOV)
Beneish M-Score
-2.70 (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 -2.70 suggests that the company is not a manipulator.

DOV' s 10-Year Beneish M-Score Range
Min: -3.46   Max: -1.76
Current: -2.7

-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 -2.59.


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 * 0.7813+0.528 * 1.0162+0.404 * 0.9564+0.892 * 1.1918+0.115 * 0.6088
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0072+4.679 * -0.0206-0.327 * 1.1213
=-2.70

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,339 Mil.
Revenue was 2092.467 + 2047.738 + 1884.647 + 3093.214 = $9,118 Mil.
Gross Profit was 801.842 + 796.417 + 736.209 + 1145.998 = $3,480 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 $442 Mil.
Selling, General & Admin. Expense(SGA) was $2,077 Mil.
Total Current Liabilities was $1,394 Mil.
Long-Term Debt was $2,570 Mil.
Net Income was 231.844 + 213.959 + 160.138 + 193.963 = $800 Mil.
Non Operating Income was 0.803 + 6.042 + -0.356 + 3.157 = $10 Mil.
Cash Flow from Operations was 290.243 + 276.785 + -16.164 + 423.707 = $975 Mil.
Accounts Receivable was $1,438 Mil.
Revenue was 1940.211 + 1932.411 + 1763.977 + 2013.831 = $7,650 Mil.
Gross Profit was 756.347 + 755.818 + 681.618 + 773.744 = $2,968 Mil.
Total Current Assets was $3,263 Mil.
Total Assets was $10,665 Mil.
Property, Plant and Equipment(Net PPE) was $1,149 Mil.
Depreciation, Depletion and Amortization(DDA) was $312 Mil.
Selling, General & Admin. Expense(SGA) was $1,730 Mil.
Total Current Liabilities was $2,019 Mil.
Long-Term Debt was $2,190 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)
=(1338.586 / 9118.066) / (1437.513 / 7650.43)
=0.14680591 / 0.18789963
=0.7813

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)
=(796.417 / 7650.43) / (801.842 / 9118.066)
=0.38789022 / 0.38171099
=1.0162

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 - (3116.331 + 818.73) / 8959.186) / (1 - (3263.17 + 1148.784) / 10665.13)
=0.56077918 / 0.58631972
=0.9564

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
=9118.066 / 7650.43
=1.1918

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))
=(311.535 / (311.535 + 1148.784)) / (441.648 / (441.648 + 818.73))
=0.21333353 / 0.35040916
=0.6088

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)
=(2076.634 / 9118.066) / (1729.988 / 7650.43)
=0.22774939 / 0.22612951
=1.0072

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)
=((2570.257 + 1393.964) / 8959.186) / ((2190.156 + 2018.537) / 10665.13)
=0.44247558 / 0.39462182
=1.1213

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
=(799.904 - 9.646 - 974.571) / 8959.186
=-0.0206

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 -2.70 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.14630.85260.99280.92960.87611.13661.17010.85280.99631.0292
GMI 0.96371.00210.9781.00531.00590.99240.91661.02721.00691.0021
AQI 1.03391.22550.94630.95750.97021.03220.90491.06881.07630.9892
SGI 1.0151.14631.23261.14171.04740.76311.05781.20621.09981.0772
DEPI 1.11730.89710.89730.89830.9350.97021.11530.92460.9820.8926
SGAI 0.96370.98050.96681.01890.98941.16440.93820.95140.97311.001
LVGI 0.96081.03931.0311.01531.01020.90020.98341.00421.14210.9726
TATA -0.032-0.0299-0.0422-0.026-0.054-0.0563-0.0279-0.0196-0.0436-0.0144
M-score -2.45-2.55-2.53-2.57-2.82-2.82-2.46-2.48-2.61-2.46

Dover Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.8840.98640.99630.97581.02520.99971.02920.84560.81150.7813
GMI 1.03551.02211.00690.99690.98520.98951.00211.00251.011.0162
AQI 1.11271.01351.07631.08521.0591.05280.98920.98440.96810.9564
SGI 1.12851.06861.09981.05351.03351.01821.07721.11841.14831.1918
DEPI 0.86510.92910.9820.95021.02671.07460.89260.67660.64670.6088
SGAI 0.96280.95530.97310.99480.98680.9911.0011.0021.00271.0072
LVGI 0.9680.95861.14211.1551.14251.12760.97261.09361.08151.1213
TATA -0.028-0.0111-0.0436-0.0377-0.0313-0.0325-0.0144-0.0127-0.0229-0.0206
M-score -2.54-2.45-2.61-2.65-2.60-2.63-2.46-2.65-2.70-2.70
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