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 -2.67 suggests that the company is not a manipulator.

IEX' s 10-Year Beneish M-Score Range
Min: -3.01   Max: -2.34
Current: -2.67

-3.01
-2.34

During the past 13 years, the highest Beneish M-Score of Idex Corp was -2.34. The lowest was -3.01. 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 * 0.9549+0.528 * 0.9762+0.404 * 0.9514+0.892 * 1.0611+0.115 * 1.0443
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9948+4.679 * -0.0315-0.327 * 1.0855
=-2.67

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $253 Mil.
Revenue was 523.899 + 533.179 + 546.693 + 543.996 = $2,148 Mil.
Gross Profit was 229.117 + 234.646 + 241.132 + 244.42 = $949 Mil.
Total Current Assets was $1,076 Mil.
Total Assets was $2,908 Mil.
Property, Plant and Equipment(Net PPE) was $220 Mil.
Depreciation, Depletion and Amortization(DDA) was $77 Mil.
Selling, General & Admin. Expense(SGA) was $504 Mil.
Total Current Liabilities was $412 Mil.
Long-Term Debt was $765 Mil.
Net Income was 61.62 + 71.441 + 71.777 + 74.548 = $279 Mil.
Non Operating Income was 1.46 + 0.944 + -0.137 + 0.844 = $3 Mil.
Cash Flow from Operations was 101.378 + 100.403 + 91.995 + 74.185 = $368 Mil.
Accounts Receivable was $250 Mil.
Revenue was 520.62 + 490.617 + 518.445 + 494.448 = $2,024 Mil.
Gross Profit was 227.009 + 211.509 + 222.849 + 211.997 = $873 Mil.
Total Current Assets was $991 Mil.
Total Assets was $2,888 Mil.
Property, Plant and Equipment(Net PPE) was $213 Mil.
Depreciation, Depletion and Amortization(DDA) was $79 Mil.
Selling, General & Admin. Expense(SGA) was $478 Mil.
Total Current Liabilities was $305 Mil.
Long-Term Debt was $772 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)
=(253.451 / 2147.767) / (250.151 / 2024.13)
=0.11800675 / 0.12358445
=0.9549

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)
=(234.646 / 2024.13) / (229.117 / 2147.767)
=0.43147624 / 0.44200092
=0.9762

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 - (1075.791 + 219.543) / 2908.07) / (1 - (990.953 + 213.488) / 2887.577)
=0.55457262 / 0.5828887
=0.9514

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
=2147.767 / 2024.13
=1.0611

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))
=(79.334 / (79.334 + 213.488)) / (76.907 / (76.907 + 219.543))
=0.2709291 / 0.25942655
=1.0443

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)
=(504.419 / 2147.767) / (477.851 / 2024.13)
=0.23485741 / 0.23607723
=0.9948

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)
=((765.006 + 411.968) / 2908.07) / ((772.005 + 304.609) / 2887.577)
=0.40472685 / 0.37284339
=1.0855

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
=(279.386 - 3.111 - 367.961) / 2908.07
=-0.0315

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.96451.12630.98710.97091.01211.00630.98510.94550.94310.9549
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 -2.49-2.34-2.51-2.60-2.72-2.51-2.38-3.01-2.78-2.67

Idex Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.97410.94550.96670.9890.89920.94311.0080.95820.98260.9549
GMI 0.98140.9770.96740.95880.95970.95310.94970.95470.9640.9762
AQI 0.98950.93550.93650.91990.92510.96390.94870.94980.94530.9514
SGI 1.10271.0631.03081.02191.02581.03581.05841.05971.07531.0611
DEPI 0.9040.96110.9750.97740.9430.97171.00521.05121.03951.0443
SGAI 0.98720.99161.00211.02081.03261.03791.03491.01991.00930.9948
LVGI 0.93541.0241.10021.1011.04980.970.95070.96510.99581.0855
TATA -0.0264-0.1038-0.1044-0.1112-0.1115-0.0506-0.0455-0.0362-0.0285-0.0315
M-score -2.54-3.01-3.05-3.08-3.15-2.78-2.67-2.66-2.60-2.67
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