Switch to:
IDEX Corp (NYSE:IEX)
Beneish M-Score
-2.56 (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.

IDEX Corp has a M-score of -2.56 suggests that the company is not a manipulator.

IEX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Max: -2.23
Current: -2.56

-3.15
-2.23

During the past 13 years, the highest Beneish M-Score of IDEX Corp was -2.23. The lowest was -3.15. 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 IDEX 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 * 1.0372+0.528 * 1.0055+0.404 * 1.0944+0.892 * 1.0184+0.115 * 0.9889
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9996+4.679 * -0.0328-0.327 * 1.0502
=-2.56

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $287 Mil.
Revenue was 530.356 + 549.696 + 502.572 + 499.798 = $2,082 Mil.
Gross Profit was 230.889 + 244.058 + 223.335 + 223.399 = $922 Mil.
Total Current Assets was $857 Mil.
Total Assets was $3,262 Mil.
Property, Plant and Equipment(Net PPE) was $261 Mil.
Depreciation, Depletion and Amortization(DDA) was $84 Mil.
Selling, General & Admin. Expense(SGA) was $490 Mil.
Total Current Liabilities was $305 Mil.
Long-Term Debt was $1,100 Mil.
Net Income was 69.873 + 75.759 + 68.13 + 67.763 = $282 Mil.
Non Operating Income was 2.364 + 1.874 + 0.744 + 0.654 = $6 Mil.
Cash Flow from Operations was 125.481 + 88.478 + 70.365 + 98.54 = $383 Mil.
Accounts Receivable was $272 Mil.
Revenue was 503.791 + 514.881 + 502.198 + 523.899 = $2,045 Mil.
Gross Profit was 223.26 + 231.615 + 226.041 + 229.117 = $910 Mil.
Total Current Assets was $906 Mil.
Total Assets was $2,870 Mil.
Property, Plant and Equipment(Net PPE) was $240 Mil.
Depreciation, Depletion and Amortization(DDA) was $77 Mil.
Selling, General & Admin. Expense(SGA) was $482 Mil.
Total Current Liabilities was $324 Mil.
Long-Term Debt was $853 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)
=(287.329 / 2082.422) / (272.008 / 2044.769)
=0.13797828 / 0.13302627
=1.0372

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)
=(910.033 / 2044.769) / (921.681 / 2082.422)
=0.44505418 / 0.44260049
=1.0055

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 - (857.353 + 261.092) / 3262.464) / (1 - (906.399 + 240.27) / 2870.362)
=0.65717783 / 0.60051415
=1.0944

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
=2082.422 / 2044.769
=1.0184

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))
=(76.599 / (76.599 + 240.27)) / (84.47 / (84.47 + 261.092))
=0.24173712 / 0.24444239
=0.9889

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)
=(490.449 / 2082.422) / (481.775 / 2044.769)
=0.23551855 / 0.23561341
=0.9996

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)
=((1099.601 + 305.357) / 3262.464) / ((852.78 + 324.186) / 2870.362)
=0.43064322 / 0.41004096
=1.0502

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
=(281.525 - 5.636 - 382.864) / 3262.464
=-0.0328

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.

IDEX Corp has a M-score of -2.56 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 local exchange's currency.

IDEX Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.12630.98710.97091.01211.00630.98510.94920.93930.98111.0612
GMI 0.99030.9881.04311.0210.96111.01730.9770.95310.97620.9876
AQI 1.07820.91121.1641.01410.90031.02610.93550.96390.95021.0952
SGI 1.14211.17641.09630.89271.13791.2151.0631.03581.06110.9408
DEPI 1.02670.85090.87970.86161.01940.93110.96110.97171.04431.0596
SGAI 0.97811.02380.99961.06170.96740.96870.99161.03790.99481.0102
LVGI 1.29881.00561.09610.77641.15471.17311.0240.971.0831.0146
TATA -0.0086-0.0229-0.047-0.0478-0.011-0.0077-0.1037-0.0506-0.0316-0.0284
M-score -2.34-2.51-2.60-2.72-2.51-2.38-3.00-2.78-2.64-2.58

IDEX Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.95820.98260.98110.91391.06541.05471.06121.15761.04551.0372
GMI 0.95470.9640.97620.98810.98960.99240.98760.99090.99921.0055
AQI 0.94980.94530.95020.96671.06021.07461.09521.11171.01661.0944
SGI 1.05971.07531.06111.01560.98680.95350.94080.95970.99121.0184
DEPI 1.05121.03951.04431.0261.06051.08261.05961.08670.98570.9889
SGAI 1.01991.00930.99480.99861.00090.99741.01020.99550.99760.9996
LVGI 0.96510.99581.0831.11081.07921.07731.01461.0731.06771.0502
TATA -0.0362-0.0285-0.0316-0.0266-0.0292-0.0312-0.0284-0.031-0.0269-0.0328
M-score -2.66-2.60-2.64-2.72-2.57-2.61-2.58-2.49-2.59-2.56
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK