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Idex Corp (NYSE:IEX)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

IEX' s 10-Year Beneish M-Score Range
Min: -3.15   Max: -2.23
Current: -2.67

-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 -2.58.


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 * 1.008+0.528 * 0.9497+0.404 * 0.9487+0.892 * 1.0584+0.115 * 1.0052
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0349+4.679 * -0.0459-0.327 * 0.9507
=-2.67

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $288 Mil.
Revenue was 543.996 + 520.62 + 490.617 + 518.445 = $2,074 Mil.
Gross Profit was 244.42 + 227.009 + 211.509 + 222.849 = $906 Mil.
Total Current Assets was $1,063 Mil.
Total Assets was $2,952 Mil.
Property, Plant and Equipment(Net PPE) was $216 Mil.
Depreciation, Depletion and Amortization(DDA) was $79 Mil.
Selling, General & Admin. Expense(SGA) was $491 Mil.
Total Current Liabilities was $314 Mil.
Long-Term Debt was $779 Mil.
Net Income was 74.548 + 67.555 + 63.799 + 62.561 = $268 Mil.
Non Operating Income was 0.844 + -0.696 + -0.188 + 0.573 = $1 Mil.
Cash Flow from Operations was 74.185 + 101.612 + 118.396 + 109.319 = $404 Mil.
Accounts Receivable was $270 Mil.
Revenue was 494.448 + 490.838 + 479.859 + 494.144 = $1,959 Mil.
Gross Profit was 211.997 + 202.858 + 194.84 + 203.113 = $813 Mil.
Total Current Assets was $922 Mil.
Total Assets was $2,823 Mil.
Property, Plant and Equipment(Net PPE) was $215 Mil.
Depreciation, Depletion and Amortization(DDA) was $79 Mil.
Selling, General & Admin. Expense(SGA) was $448 Mil.
Total Current Liabilities was $284 Mil.
Long-Term Debt was $816 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)
=(287.903 / 2073.678) / (269.873 / 1959.289)
=0.13883689 / 0.13774027
=1.008

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)
=(227.009 / 1959.289) / (244.42 / 2073.678)
=0.41484845 / 0.43680215
=0.9497

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 - (1063.376 + 216.045) / 2951.822) / (1 - (921.918 + 215.091) / 2822.6)
=0.56656567 / 0.59717672
=0.9487

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
=2073.678 / 1959.289
=1.0584

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))
=(78.961 / (78.961 + 215.091)) / (78.752 / (78.752 + 216.045))
=0.26852734 / 0.26713976
=1.0052

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)
=(491.151 / 2073.678) / (448.393 / 1959.289)
=0.23685018 / 0.22885496
=1.0349

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)
=((778.852 + 313.981) / 2951.822) / ((815.562 + 283.622) / 2822.6)
=0.3702232 / 0.38942252
=0.9507

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
=(268.463 - 0.533 - 403.512) / 2951.822
=-0.0459

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 -2.67 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.

Idex Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.03950.96451.12630.98710.96850.99961.02450.97440.95280.9547
GMI 0.96120.98520.99030.9881.04311.0210.96111.01730.9770.9531
AQI 1.05770.93031.07820.91121.1641.01410.90031.02610.93550.9639
SGI 1.12931.12231.14211.17641.09630.89271.13791.2151.0631.0358
DEPI 1.0071.05961.02670.85090.87970.86161.01940.93110.96110.9717
SGAI 0.95050.96950.97811.02380.99961.06170.96740.96870.99161.0379
LVGI 1.03530.79171.29881.00561.09610.77641.15471.17311.0240.97
TATA -0.0465-0.0286-0.0086-0.0229-0.047-0.0478-0.011-0.0077-0.1037-0.0506
M-score -2.55-2.49-2.34-2.51-2.60-2.74-2.49-2.39-3.00-2.77

Idex Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.97440.93230.83920.97410.95280.96670.9890.89920.95471.008
GMI 1.01731.02151.01750.98140.9770.96740.95880.95970.95310.9497
AQI 1.02611.00671.00440.98950.93550.93650.91990.92510.96390.9487
SGI 1.2151.19961.16951.10271.0631.03081.02191.02581.03581.0584
DEPI 0.93110.87620.78390.9040.96110.9750.97740.9430.97171.0052
SGAI 0.96870.97420.97730.98720.99161.00211.02081.03261.03791.0349
LVGI 1.17311.17280.90820.93541.0241.10021.1011.04980.970.9507
TATA -0.0075-0.0166-0.0256-0.0264-0.1038-0.1044-0.1116-0.1119-0.051-0.0459
M-score -2.39-2.49-2.58-2.54-3.00-3.05-3.09-3.15-2.77-2.67
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