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Idex Corp (NYSE:IEX)
Beneish M-Score
-2.60 (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 -2.60 suggests that the company is not a manipulator.

IEX' s 10-Year Beneish M-Score Range
Min: -3.15   Max: -2.23
Current: -2.6

-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 * 0.9826+0.528 * 0.964+0.404 * 0.9453+0.892 * 1.0753+0.115 * 1.0395
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0093+4.679 * -0.0285-0.327 * 0.9958
=-2.60

* 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 $270 Mil.
Revenue was 533.179 + 546.693 + 543.996 + 520.62 = $2,144 Mil.
Gross Profit was 234.646 + 241.132 + 244.42 + 227.009 = $947 Mil.
Total Current Assets was $1,077 Mil.
Total Assets was $2,939 Mil.
Property, Plant and Equipment(Net PPE) was $220 Mil.
Depreciation, Depletion and Amortization(DDA) was $78 Mil.
Selling, General & Admin. Expense(SGA) was $507 Mil.
Total Current Liabilities was $399 Mil.
Long-Term Debt was $720 Mil.
Net Income was 71.441 + 71.777 + 74.548 + 67.555 = $285 Mil.
Non Operating Income was 0.944 + -0.137 + 0.844 + -0.696 = $1 Mil.
Cash Flow from Operations was 100.403 + 91.995 + 74.185 + 101.612 = $368 Mil.
Accounts Receivable was $256 Mil.
Revenue was 490.617 + 518.445 + 494.448 + 490.838 = $1,994 Mil.
Gross Profit was 211.509 + 222.849 + 211.997 + 202.858 = $849 Mil.
Total Current Assets was $951 Mil.
Total Assets was $2,849 Mil.
Property, Plant and Equipment(Net PPE) was $214 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General & Admin. Expense(SGA) was $467 Mil.
Total Current Liabilities was $309 Mil.
Long-Term Debt was $780 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)
=(270.466 / 2144.488) / (255.977 / 1994.348)
=0.12612148 / 0.12835122
=0.9826

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)
=(241.132 / 1994.348) / (234.646 / 2144.488)
=0.42580984 / 0.44169377
=0.964

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 - (1076.957 + 219.824) / 2939.312) / (1 - (950.769 + 214.253) / 2849.381)
=0.55881478 / 0.59113155
=0.9453

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
=2144.488 / 1994.348
=1.0753

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))
=(80.069 / (80.069 + 214.253)) / (77.921 / (77.921 + 219.824))
=0.27204558 / 0.26170381
=1.0395

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)
=(506.564 / 2144.488) / (466.774 / 1994.348)
=0.23621676 / 0.23404842
=1.0093

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)
=((720.173 + 398.551) / 2939.312) / ((780.043 + 309.042) / 2849.381)
=0.38060743 / 0.3822181
=0.9958

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
=(285.321 - 0.955 - 368.195) / 2939.312
=-0.0285

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 -2.60 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 1.03950.96451.12630.98710.97091.01211.00630.98510.94920.9509
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 -2.55-2.49-2.34-2.51-2.60-2.72-2.51-2.38-3.00-2.77

Idex Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.83920.97410.94920.96670.9890.89920.95091.0080.95820.9826
GMI 1.01750.98140.9770.96740.95880.95970.95310.94970.95470.964
AQI 1.00440.98950.93550.93650.91990.92510.96390.94870.94980.9453
SGI 1.16951.10271.0631.03081.02191.02581.03581.05841.05971.0753
DEPI 0.78390.90410.96110.9750.97740.9430.97171.00521.05121.0395
SGAI 0.97730.98720.99161.00211.02081.03261.03791.03491.01991.0093
LVGI 0.90820.93541.0241.10021.1011.04980.970.95070.96510.9958
TATA -0.0256-0.0264-0.1038-0.1044-0.1116-0.1119-0.051-0.0459-0.0362-0.0285
M-score -2.58-2.54-3.01-3.05-3.09-3.15-2.77-2.67-2.66-2.60
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