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Idex Corp (NYSE:IEX)
Beneish M-Score
-2.72 (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 -2.72 suggests that the company is not a manipulator.

IEX' s 10-Year Beneish M-Score Range
Min: -3.15   Max: -2.23
Current: -2.72

-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 * 0.9139+0.528 * 0.9881+0.404 * 0.9667+0.892 * 1.0156+0.115 * 1.026
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9986+4.679 * -0.0266-0.327 * 1.1108
=-2.72

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 65.954 + 61.62 + 71.441 + 71.777 = $271 Mil.
Non Operating Income was 1.723 + 1.46 + 0.944 + -0.137 = $4 Mil.
Cash Flow from Operations was 49.404 + 101.378 + 100.403 + 91.995 = $343 Mil.
Accounts Receivable was $288 Mil.
Revenue was 543.996 + 520.62 + 490.617 + 518.445 = $2,074 Mil.
Gross Profit was 244.42 + 227.009 + 211.509 + 222.849 = $906 Mil.
Total Current Assets was $1,063 Mil.
Total Assets was $2,952 Mil.
Property, Plant and Equipment(Net PPE) was $216 Mil.
Depreciation, Depletion and Amortization(DDA) was $79 Mil.
Selling, General & Admin. Expense(SGA) was $491 Mil.
Total Current Liabilities was $314 Mil.
Long-Term Debt was $779 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)
=(267.206 / 2105.969) / (287.903 / 2073.678)
=0.12688031 / 0.13883689
=0.9139

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)
=(229.117 / 2073.678) / (226.041 / 2105.969)
=0.43680215 / 0.44204639
=0.9881

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 - (1081.388 + 216.336) / 2869.154) / (1 - (1063.376 + 216.045) / 2951.822)
=0.54769803 / 0.56656567
=0.9667

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
=2105.969 / 2073.678
=1.0156

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))
=(78.752 / (78.752 + 216.045)) / (76.16 / (76.16 + 216.336))
=0.26713976 / 0.26037963
=1.026

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)
=(498.118 / 2105.969) / (491.151 / 2073.678)
=0.23652675 / 0.23685018
=0.9986

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)
=((819.863 + 360.037) / 2869.154) / ((778.852 + 313.981) / 2951.822)
=0.4112362 / 0.3702232
=1.1108

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
=(270.792 - 3.99 - 343.18) / 2869.154
=-0.0266

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 -2.72 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.94550.96670.9890.89920.94311.0080.95820.98260.95490.9139
GMI 0.9770.96740.95880.95970.95310.94970.95470.9640.97620.9881
AQI 0.93550.93650.91990.92510.96390.94870.94980.94530.95140.9667
SGI 1.0631.03081.02191.02581.03581.05841.05971.07531.06111.0156
DEPI 0.96110.9750.97740.9430.97171.00521.05121.03951.04431.026
SGAI 0.99161.00211.02081.03261.03791.03491.01991.00930.99480.9986
LVGI 1.0241.10021.1011.04980.970.95070.96510.99581.08551.1108
TATA -0.1038-0.1044-0.1112-0.1115-0.0506-0.0455-0.0362-0.0285-0.0315-0.0266
M-score -3.01-3.05-3.08-3.15-2.78-2.67-2.66-2.60-2.67-2.72
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