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Roper Technologies Inc (NYSE:ROP)
Beneish M-Score
-2.63 (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.

Roper Technologies Inc has a M-score of -2.63 suggests that the company is not a manipulator.

ROP' s 10-Year Beneish M-Score Range
Min: -3.88   Max: -2.03
Current: -2.63

-3.88
-2.03

During the past 13 years, the highest Beneish M-Score of Roper Technologies Inc was -2.03. The lowest was -3.88. And the median was -2.53.


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 Roper Technologies Inc 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 * 0.9041+0.528 * 0.9826+0.404 * 1.0088+0.892 * 1.0737+0.115 * 0.9775
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9649+4.679 * -0.0259-0.327 * 1.0185
=-2.63

* 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 $499 Mil.
Revenue was 865.281 + 946.145 + 884.122 + 885.175 = $3,581 Mil.
Gross Profit was 518.161 + 565.741 + 524.04 + 523.182 = $2,131 Mil.
Total Current Assets was $1,522 Mil.
Total Assets was $8,975 Mil.
Property, Plant and Equipment(Net PPE) was $111 Mil.
Depreciation, Depletion and Amortization(DDA) was $197 Mil.
Selling, General & Admin. Expense(SGA) was $1,108 Mil.
Total Current Liabilities was $699 Mil.
Long-Term Debt was $2,618 Mil.
Net Income was 155.773 + 185.936 + 155.51 + 157.361 = $655 Mil.
Non Operating Income was -0.679 + -0.422 + 0.552 + -0.93 = $-1 Mil.
Cash Flow from Operations was 260.399 + 261.209 + 226.102 + 140.502 = $888 Mil.
Accounts Receivable was $514 Mil.
Revenue was 834.052 + 889.173 + 827.81 + 784.01 = $3,335 Mil.
Gross Profit was 488.936 + 533.22 + 482.625 + 445.507 = $1,950 Mil.
Total Current Assets was $1,432 Mil.
Total Assets was $8,190 Mil.
Property, Plant and Equipment(Net PPE) was $117 Mil.
Depreciation, Depletion and Amortization(DDA) was $194 Mil.
Selling, General & Admin. Expense(SGA) was $1,070 Mil.
Total Current Liabilities was $668 Mil.
Long-Term Debt was $2,304 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)
=(499.042 / 3580.723) / (514.081 / 3335.045)
=0.13936906 / 0.15414515
=0.9041

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)
=(565.741 / 3335.045) / (518.161 / 3580.723)
=0.58478611 / 0.59516584
=0.9826

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 - (1521.822 + 110.973) / 8974.622) / (1 - (1432.17 + 116.59) / 8189.703)
=0.81806532 / 0.81088936
=1.0088

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
=3580.723 / 3335.045
=1.0737

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))
=(194.452 / (194.452 + 116.59)) / (196.889 / (196.889 + 110.973))
=0.62516316 / 0.63953655
=0.9775

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)
=(1108.155 / 3580.723) / (1069.704 / 3335.045)
=0.309478 / 0.3207465
=0.9649

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)
=((2617.722 + 699.384) / 8974.622) / ((2304.143 + 667.973) / 8189.703)
=0.36960955 / 0.36290889
=1.0185

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
=(654.58 - -1.479 - 888.212) / 8974.622
=-0.0259

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.

Roper Technologies Inc has a M-score of -2.63 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.

Roper Technologies Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.7091.17560.96060.81771.13960.90780.92881.12010.91160.899
GMI 1.0010.98671.00490.97821.01240.95230.98630.97020.96040.982
AQI 1.05560.98810.91871.08961.02371.01190.98361.04991.01190.9868
SGI 1.49911.16991.2361.09720.88871.16411.17221.07021.08171.0962
DEPI 0.70290.97370.93470.98210.97310.89450.96470.96470.94550.9642
SGAI 0.98130.96990.9581.03211.03811.0090.95870.9991.05230.9665
LVGI 0.95310.98260.92051.030.84351.00450.83681.24121.03330.8894
TATA -0.0504-0.0231-0.0264-0.0409-0.0304-0.035-0.0343-0.027-0.0323-0.0232
M-score -2.53-2.28-2.43-2.75-2.54-2.62-2.51-2.51-2.68-2.57

Roper Technologies Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.12011.11211.16950.95360.91160.9620.84820.94640.8990.9041
GMI 0.97020.96460.96080.95890.96040.96390.96310.97030.9820.9826
AQI 1.04991.06111.11461.00691.01191.01090.97230.98670.98681.0088
SGI 1.07021.05471.06611.08081.08171.10451.11611.10561.09621.0737
DEPI 0.96470.94620.94590.93590.94550.95220.9570.96460.96420.9775
SGAI 0.9991.01561.04861.04471.05231.04180.99130.98440.96650.9649
LVGI 1.24121.24671.48191.03551.03331.02960.84580.90670.88941.0185
TATA -0.027-0.0287-0.0279-0.0319-0.0323-0.035-0.0288-0.0223-0.0232-0.0259
M-score -2.51-2.55-2.54-2.65-2.68-2.62-2.63-2.53-2.57-2.63
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