Switch to:
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 -2.66 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 -2.59.


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 * 0.9582+0.528 * 0.9547+0.404 * 0.9498+0.892 * 1.0597+0.115 * 1.0512
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0199+4.679 * -0.0362-0.327 * 0.9651
=-2.66

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $272 Mil.
Revenue was 546.693 + 543.996 + 520.62 + 490.617 = $2,102 Mil.
Gross Profit was 241.132 + 244.42 + 227.009 + 211.509 = $924 Mil.
Total Current Assets was $1,082 Mil.
Total Assets was $2,991 Mil.
Property, Plant and Equipment(Net PPE) was $223 Mil.
Depreciation, Depletion and Amortization(DDA) was $78 Mil.
Selling, General & Admin. Expense(SGA) was $497 Mil.
Total Current Liabilities was $423 Mil.
Long-Term Debt was $705 Mil.
Net Income was 71.777 + 74.548 + 67.555 + 63.799 = $278 Mil.
Non Operating Income was -0.137 + 0.844 + -0.696 + -0.188 = $-0 Mil.
Cash Flow from Operations was 91.995 + 74.185 + 101.612 + 118.396 = $386 Mil.
Accounts Receivable was $268 Mil.
Revenue was 518.445 + 494.448 + 490.838 + 479.859 = $1,984 Mil.
Gross Profit was 222.849 + 211.997 + 202.858 + 194.84 = $833 Mil.
Total Current Assets was $936 Mil.
Total Assets was $2,828 Mil.
Property, Plant and Equipment(Net PPE) was $213 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General & Admin. Expense(SGA) was $460 Mil.
Total Current Liabilities was $295 Mil.
Long-Term Debt was $811 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)
=(272.151 / 2101.926) / (268.035 / 1983.59)
=0.12947697 / 0.13512621
=0.9582

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)
=(244.42 / 1983.59) / (241.132 / 2101.926)
=0.41971577 / 0.43963013
=0.9547

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 - (1081.526 + 223.395) / 2990.997) / (1 - (936.1 + 213.384) / 2827.652)
=0.56371705 / 0.59348463
=0.9498

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
=2101.926 / 1983.59
=1.0597

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))
=(79.835 / (79.835 + 213.384)) / (78.091 / (78.091 + 223.395))
=0.2722709 / 0.25902032
=1.0512

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)
=(496.905 / 2101.926) / (459.801 / 1983.59)
=0.23640461 / 0.23180244
=1.0199

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)
=((705.326 + 423.375) / 2990.997) / ((811.007 + 294.683) / 2827.652)
=0.37736614 / 0.39102761
=0.9651

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
=(277.679 - -0.177 - 386.188) / 2990.997
=-0.0362

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 -2.66 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 1.0090.98641.13460.98710.96850.99961.02450.97440.95280.9547
GMI 0.97050.98320.98280.9881.03191.0320.96111.01730.9770.9531
AQI 1.05770.93081.07750.91121.15091.02560.90031.02610.93550.9639
SGI 1.16341.12391.1071.17641.09630.89271.13791.2151.0631.0358
DEPI 1.0070.96821.12360.85090.87970.86161.01940.93110.96110.9717
SGAI 0.95420.96870.97511.02380.99961.06170.96740.96870.99161.0379
LVGI 1.03530.79171.29881.00561.08290.78591.15471.17311.0240.97
TATA -0.0465-0.0287-0.0086-0.0229-0.0312-0.0478-0.011-0.0077-0.1037-0.0506
M-score -2.54-2.48-2.36-2.51-2.53-2.73-2.49-2.39-3.00-2.77

Idex Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.93230.83920.97410.95280.96670.9890.89920.95471.0080.9582
GMI 1.02151.01750.98140.9770.96740.95880.95970.95310.94970.9547
AQI 1.00671.00440.98950.93550.93650.91990.92510.96390.94870.9498
SGI 1.19961.16951.10271.0631.03081.02191.02581.03581.05841.0597
DEPI 0.87620.78390.90410.96110.9750.97740.9430.97171.00521.0512
SGAI 0.97420.97730.98720.99161.00211.02081.03261.03791.03491.0199
LVGI 1.17280.90820.93541.0241.10021.1011.04980.970.95070.9651
TATA -0.0168-0.0256-0.0264-0.1038-0.1044-0.1116-0.1119-0.051-0.0459-0.0362
M-score -2.50-2.58-2.54-3.00-3.05-3.09-3.15-2.77-2.67-2.66
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)
Free 7-day Trial
FEEDBACK