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Idex Corporation (NYSE:IEX)
Beneish M-Score
-2.77 (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 Corporation has a M-score of -2.77 suggests that the company is not a manipulator.

IEX' s 10-Year Beneish M-Score Range
Min: -3   Max: -2.34
Current: -2.77

-3
-2.34

During the past 13 years, the highest Beneish M-Score of Idex Corporation was -2.34. The lowest was -3.00. 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 Corporation 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 * 0.9547+0.528 * 0.9531+0.404 * 0.9639+0.892 * 1.0358+0.115 * 0.9717
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0379+4.679 * -0.051-0.327 * 0.97
=-2.77

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $253 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.
Net Income was 67.555 + 63.799 + 62.561 + 61.3 = $255 Mil.
Non Operating Income was -0.696 + -0.188 + 0.573 + 1.279 = $1 Mil.
Cash Flow from Operations was 101.612 + 118.396 + 109.319 + 72.195 = $402 Mil.
Accounts Receivable was $256 Mil.
Revenue was 490.838 + 479.859 + 494.144 + 489.417 = $1,954 Mil.
Gross Profit was 202.858 + 194.84 + 203.113 + 202.889 = $804 Mil.
Total Current Assets was $882 Mil.
Total Assets was $2,785 Mil.
Property, Plant and Equipment(Net PPE) was $219 Mil.
Depreciation, Depletion and Amortization(DDA) was $78 Mil.
Selling, General & Admin. Expense(SGA) was $444 Mil.
Total Current Liabilities was $291 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)
=(253.226 / 2024.13) / (256.095 / 1954.258)
=0.12510362 / 0.13104462
=0.9547

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)
=(211.509 / 1954.258) / (227.009 / 2024.13)
=0.41125583 / 0.43147624
=0.9531

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 - (990.953 + 213.488) / 2887.577) / (1 - (881.865 + 219.161) / 2785.39)
=0.5828887 / 0.60471388
=0.9639

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
=2024.13 / 1954.258
=1.0358

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))
=(78.312 / (78.312 + 219.161)) / (79.334 / (79.334 + 213.488))
=0.26325751 / 0.2709291
=0.9717

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)
=(477.851 / 2024.13) / (444.49 / 1954.258)
=0.23607723 / 0.22744694
=1.0379

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)
=((772.005 + 304.609) / 2887.577) / ((779.241 + 291.427) / 2785.39)
=0.37284339 / 0.38438711
=0.97

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
=(255.215 - 0.968 - 401.522) / 2887.577
=-0.051

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 Corporation has a M-score of -2.77 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 Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.03950.96451.12630.98710.96850.99961.02450.97440.95280.9547
GMI 0.96120.98520.99030.9881.04311.0210.96111.01730.9770.9531
AQI 1.05770.93031.07820.91121.1641.01410.90031.02610.93550.9639
SGI 1.12931.12231.14211.17641.09630.89271.13791.2151.0631.0358
DEPI 1.0071.05961.02670.85090.87970.86161.01940.93110.96110.9717
SGAI 0.95050.96950.97811.02380.99961.06170.96740.96870.99161.0379
LVGI 1.03530.79171.29881.00561.09610.77641.15471.17311.0240.97
TATA -0.0465-0.0286-0.0086-0.0229-0.047-0.0478-0.011-0.0077-0.1037-0.0506
M-score -2.55-2.49-2.34-2.51-2.60-2.74-2.49-2.39-3.00-2.77

Idex Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.01170.97440.93230.83920.97410.95280.96670.9890.89920.9547
GMI 1.02321.01731.02151.01750.98140.9770.96740.95880.95970.9531
AQI 1.01121.02611.00671.00440.98950.93550.93650.91990.92510.9639
SGI 1.21481.2151.19961.16951.10271.0631.03081.02191.02581.0358
DEPI 1.03860.93110.87620.78390.9040.96110.9750.97740.9430.9717
SGAI 0.95280.96870.97420.97730.98720.99161.00211.02081.03261.0379
LVGI 1.19951.17311.17280.90820.93541.0241.10021.1011.04980.97
TATA -0.0043-0.0075-0.0166-0.0256-0.0264-0.1038-0.1044-0.1116-0.1119-0.051
M-score -2.33-2.39-2.49-2.58-2.54-3.00-3.05-3.09-3.15-2.77
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