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IDEX Corp (NYSE:IEX)
Beneish M-Score
-2.49 (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 -2.49 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: -2.49

-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 * 1.1576+0.528 * 0.9909+0.404 * 1.1117+0.892 * 0.9597+0.115 * 1.0867
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9955+4.679 * -0.031-0.327 * 1.073
=-2.49

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $297 Mil.
Revenue was 502.572 + 499.798 + 503.791 + 514.881 = $2,021 Mil.
Gross Profit was 223.335 + 223.399 + 223.26 + 231.615 = $902 Mil.
Total Current Assets was $977 Mil.
Total Assets was $3,142 Mil.
Property, Plant and Equipment(Net PPE) was $253 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General & Admin. Expense(SGA) was $476 Mil.
Total Current Liabilities was $292 Mil.
Long-Term Debt was $1,094 Mil.
Net Income was 68.13 + 67.763 + 79.505 + 69.585 = $285 Mil.
Non Operating Income was 0.744 + 0.654 + 0.693 + -0.827 = $1 Mil.
Cash Flow from Operations was 70.365 + 98.54 + 113.353 + 99.024 = $381 Mil.
Accounts Receivable was $267 Mil.
Revenue was 502.198 + 523.899 + 533.179 + 546.693 = $2,106 Mil.
Gross Profit was 226.041 + 229.117 + 234.646 + 241.132 = $931 Mil.
Total Current Assets was $1,081 Mil.
Total Assets was $2,869 Mil.
Property, Plant and Equipment(Net PPE) was $216 Mil.
Depreciation, Depletion and Amortization(DDA) was $76 Mil.
Selling, General & Admin. Expense(SGA) was $498 Mil.
Total Current Liabilities was $360 Mil.
Long-Term Debt was $820 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)
=(296.834 / 2021.042) / (267.206 / 2105.969)
=0.14687176 / 0.12688031
=1.1576

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)
=(930.936 / 2105.969) / (901.609 / 2021.042)
=0.44204639 / 0.44611097
=0.9909

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 - (976.508 + 252.512) / 3142.298) / (1 - (1081.388 + 216.336) / 2869.154)
=0.6088786 / 0.54769803
=1.1117

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
=2021.042 / 2105.969
=0.9597

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))
=(76.16 / (76.16 + 216.336)) / (79.567 / (79.567 + 252.512))
=0.26037963 / 0.23960262
=1.0867

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)
=(475.902 / 2021.042) / (498.118 / 2105.969)
=0.23547358 / 0.23652675
=0.9955

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)
=((1094.232 + 292.282) / 3142.298) / ((819.863 + 360.037) / 2869.154)
=0.44124205 / 0.4112362
=1.073

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
=(284.983 - 1.264 - 381.282) / 3142.298
=-0.031

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 -2.49 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.16190.98710.97091.01211.00630.98510.94920.93930.98111.0706
GMI 0.98280.9881.03191.0320.96111.01730.9770.95310.97620.9876
AQI 1.07820.91121.1641.01410.90031.02610.93550.96390.95021.0952
SGI 1.1071.17641.09630.89271.13791.2151.0631.03581.06110.9408
DEPI 1.14310.85090.87970.86161.01940.93110.96110.97171.04431.0596
SGAI 0.97511.02380.99961.06170.96740.96870.99161.03790.99481.0102
LVGI 1.29881.00561.09610.77641.15471.17311.0240.971.0831.0146
TATA -0.0086-0.0229-0.0455-0.0478-0.011-0.0077-0.1037-0.0506-0.0316-0.0284
M-score -2.33-2.51-2.60-2.72-2.51-2.38-3.00-2.78-2.64-2.57

IDEX Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.93931.0080.95820.98260.98110.91391.06541.05471.07061.1576
GMI 0.95310.94970.95470.9640.97620.98810.98960.99240.98760.9909
AQI 0.96390.94870.94980.94530.95020.96671.06021.07461.09521.1117
SGI 1.03581.05841.05971.07531.06111.01560.98680.95350.94080.9597
DEPI 0.97171.00521.05121.03951.04431.0261.06051.08261.05961.0867
SGAI 1.03791.03491.01991.00930.99480.99861.00090.99741.01020.9955
LVGI 0.970.95070.96510.99581.0831.11081.07921.07731.01461.073
TATA -0.0506-0.0455-0.0362-0.0285-0.0316-0.0266-0.0292-0.0312-0.0284-0.031
M-score -2.78-2.67-2.66-2.60-2.64-2.72-2.57-2.61-2.57-2.49
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