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Roper Technologies Inc (NYSE:ROP)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

ROP' s 10-Year Beneish M-Score Range
Min: -2.87   Max: -2.03
Current: -2.57

-2.87
-2.03

During the past 13 years, the highest Beneish M-Score of Roper Technologies Inc was -2.03. The lowest was -2.87. And the median was -2.52.


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 * 0.899+0.528 * 0.982+0.404 * 0.9868+0.892 * 1.0962+0.115 * 0.9642
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9665+4.679 * -0.0232-0.327 * 0.8894
=-2.57

* 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 $512 Mil.
Revenue was 946.145 + 884.122 + 885.175 + 834.052 = $3,549 Mil.
Gross Profit was 565.741 + 524.04 + 523.182 + 488.936 = $2,102 Mil.
Total Current Assets was $1,512 Mil.
Total Assets was $8,413 Mil.
Property, Plant and Equipment(Net PPE) was $111 Mil.
Depreciation, Depletion and Amortization(DDA) was $197 Mil.
Selling, General & Admin. Expense(SGA) was $1,102 Mil.
Total Current Liabilities was $628 Mil.
Long-Term Debt was $2,203 Mil.
Net Income was 185.936 + 155.51 + 157.361 + 147.226 = $646 Mil.
Non Operating Income was -0.422 + 0.552 + -0.93 + 1.42 = $1 Mil.
Cash Flow from Operations was 261.209 + 226.102 + 140.502 + 212.628 = $840 Mil.
Accounts Receivable was $519 Mil.
Revenue was 889.173 + 827.81 + 784.01 + 737.135 = $3,238 Mil.
Gross Profit was 533.22 + 482.625 + 445.507 + 421.576 = $1,883 Mil.
Total Current Assets was $1,373 Mil.
Total Assets was $8,185 Mil.
Property, Plant and Equipment(Net PPE) was $117 Mil.
Depreciation, Depletion and Amortization(DDA) was $189 Mil.
Selling, General & Admin. Expense(SGA) was $1,041 Mil.
Total Current Liabilities was $643 Mil.
Long-Term Debt was $2,454 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)
=(511.538 / 3549.494) / (519.075 / 3238.128)
=0.14411575 / 0.16030095
=0.899

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)
=(524.04 / 3238.128) / (565.741 / 3549.494)
=0.58148659 / 0.59216863
=0.982

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 - (1512.105 + 110.876) / 8412.934) / (1 - (1373.337 + 117.31) / 8184.981)
=0.80708502 / 0.81788021
=0.9868

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
=3549.494 / 3238.128
=1.0962

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))
=(189.19 / (189.19 + 117.31)) / (197.284 / (197.284 + 110.876))
=0.61725938 / 0.6401999
=0.9642

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)
=(1102.426 / 3549.494) / (1040.567 / 3238.128)
=0.3105868 / 0.32134832
=0.9665

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)
=((2203.031 + 627.947) / 8412.934) / ((2453.836 + 643.091) / 8184.981)
=0.33650306 / 0.37836704
=0.8894

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
=(646.033 - 0.62 - 840.441) / 8412.934
=-0.0232

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 -2.57 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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