ROP has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 Industries Inc has a M-score of -2.66 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Roper Industries Inc was -2.04. The lowest was -2.88. And the median was -2.53.
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 Industries 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 * 0.9359||+||0.528 * 0.9604||+||0.404 * 1.0119||+||0.892 * 1.0817||+||0.115 * 0.9455|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0523||+||4.679 * -0.0323||-||0.327 * 1.0333|
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|Accounts Receivable was $606 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.
Net Income was 165.703 + 136.323 + 111.353 + 124.914 = $538 Mil.
Non Operating Income was -0.645 + 0.409 + 2.536 + -2.492 = $-0 Mil.
Cash Flow from Operations was 235.78 + 255.766 + 139.739 + 171.268 = $803 Mil.
|Accounts Receivable was $599 Mil.
Revenue was 809.91 + 747.641 + 724.872 + 711.066 = $2,993 Mil.
Gross Profit was 466.361 + 416.555 + 397.608 + 391.193 = $1,672 Mil.
Total Current Assets was $1,246 Mil.
Total Assets was $7,071 Mil.
Property, Plant and Equipment(Net PPE) was $110 Mil.
Depreciation, Depletion and Amortization(DDA) was $155 Mil.
Selling, General & Admin. Expense(SGA) was $914 Mil.
Total Current Liabilities was $1,086 Mil.
Long-Term Debt was $1,503 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(606.02 / 3238.128)||/||(598.601 / 2993.489)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(482.625 / 2993.489)||/||(533.22 / 3238.128)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1373.337 + 117.31) / 8184.981)||/||(1 - (1245.542 + 110.397) / 7071.104)|
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.
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))|
|=||(154.748 / (154.748 + 110.397))||/||(189.19 / (189.19 + 117.31))|
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)|
|=||(1040.567 / 3238.128)||/||(914.13 / 2993.489)|
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)|
|=||((2453.836 + 643.091) / 8184.981)||/||((1503.107 + 1086.21) / 7071.104)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(538.293 - -0.192||-||802.553)||/||8184.981|
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 Industries Inc has a M-score of -2.66 suggests that the company will not be a manipulator.
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
Roper Industries Inc Annual Data
Roper Industries Inc Quarterly Data