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Idex Corp (NYSE:IEX)
Beneish M-Score
-2.61 (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 -2.61 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: -2.61

-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 -2.60.


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 * 1.0547+0.528 * 0.9924+0.404 * 1.0746+0.892 * 0.9535+0.115 * 1.0826
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9974+4.679 * -0.0312-0.327 * 1.0773
=-2.61

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 79.505 + 69.585 + 65.954 + 61.62 = $277 Mil.
Non Operating Income was 0.693 + -0.827 + 1.723 + 1.46 = $3 Mil.
Cash Flow from Operations was 113.353 + 99.024 + 49.404 + 101.378 = $363 Mil.
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.



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)
=(272.008 / 2044.769) / (270.466 / 2144.488)
=0.13302627 / 0.12612148
=1.0547

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)
=(231.615 / 2144.488) / (223.26 / 2044.769)
=0.44169377 / 0.44505418
=0.9924

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 - (906.399 + 240.27) / 2870.362) / (1 - (1076.957 + 219.824) / 2939.312)
=0.60051415 / 0.55881478
=1.0746

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
=2044.769 / 2144.488
=0.9535

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))
=(77.921 / (77.921 + 219.824)) / (76.599 / (76.599 + 240.27))
=0.26170381 / 0.24173712
=1.0826

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)
=(481.775 / 2044.769) / (506.564 / 2144.488)
=0.23561341 / 0.23621676
=0.9974

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)
=((852.78 + 324.186) / 2870.362) / ((720.173 + 398.551) / 2939.312)
=0.41004096 / 0.38060743
=1.0773

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
=(276.664 - 3.049 - 363.159) / 2870.362
=-0.0312

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 -2.61 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.96451.12630.98710.97091.01211.00630.98510.94920.93930.9549
GMI 0.98520.99030.9881.04311.0210.96111.01730.9770.95310.9762
AQI 0.93031.07820.91121.1641.01410.90031.02610.93550.96390.9514
SGI 1.12231.14211.17641.09630.89271.13791.2151.0631.03581.0611
DEPI 1.05961.02670.85090.87970.86161.01940.93110.96110.97171.0443
SGAI 0.96950.97811.02380.99961.06170.96740.96870.99161.03790.9948
LVGI 0.79171.29881.00561.09610.77641.15471.17311.0240.971.0855
TATA -0.0286-0.0086-0.0229-0.047-0.0478-0.011-0.0077-0.1037-0.0506-0.0315
M-score -2.49-2.34-2.51-2.60-2.72-2.51-2.38-3.00-2.78-2.67

Idex Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.9890.89920.93931.0080.95820.98260.95490.91391.06541.0547
GMI 0.95880.95970.95310.94970.95470.9640.97620.98810.98960.9924
AQI 0.91990.92510.96390.94870.94980.94530.95140.96671.06021.0746
SGI 1.02191.02581.03581.05841.05971.07531.06111.01560.98680.9535
DEPI 0.97740.9430.97171.00521.05121.03951.04431.0261.06051.0826
SGAI 1.02081.03261.03791.03491.01991.00930.99480.99861.00090.9974
LVGI 1.1011.04980.970.95070.96510.99581.08551.11081.07921.0773
TATA -0.1112-0.1115-0.0506-0.0455-0.0362-0.0285-0.0315-0.0266-0.0292-0.0312
M-score -3.08-3.15-2.78-2.67-2.66-2.60-2.67-2.72-2.57-2.61
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