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Roper Technologies Inc (NYSE:ROP)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

ROP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88   Max: -2.03
Current: -2.68

-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 * 0.9014+0.528 * 0.9874+0.404 * 1.0097+0.892 * 1.0265+0.115 * 0.9672
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9945+4.679 * -0.026-0.327 * 1.0302
=-2.68

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $489 Mil.
Revenue was 883.933 + 889.541 + 865.281 + 946.145 = $3,585 Mil.
Gross Profit was 533.483 + 533.911 + 518.161 + 565.741 = $2,151 Mil.
Total Current Assets was $1,648 Mil.
Total Assets was $9,433 Mil.
Property, Plant and Equipment(Net PPE) was $105 Mil.
Depreciation, Depletion and Amortization(DDA) was $198 Mil.
Selling, General & Admin. Expense(SGA) was $1,118 Mil.
Total Current Liabilities was $657 Mil.
Long-Term Debt was $2,792 Mil.
Net Income was 160.417 + 171.28 + 155.773 + 185.936 = $673 Mil.
Non Operating Income was 0.251 + -1.52 + -0.679 + -0.422 = $-2 Mil.
Cash Flow from Operations was 226.619 + 172.549 + 260.399 + 261.209 = $921 Mil.
Accounts Receivable was $529 Mil.
Revenue was 884.122 + 885.175 + 834.052 + 889.173 = $3,493 Mil.
Gross Profit was 524.04 + 523.182 + 488.936 + 533.22 = $2,069 Mil.
Total Current Assets was $1,533 Mil.
Total Assets was $8,510 Mil.
Property, Plant and Equipment(Net PPE) was $115 Mil.
Depreciation, Depletion and Amortization(DDA) was $197 Mil.
Selling, General & Admin. Expense(SGA) was $1,096 Mil.
Total Current Liabilities was $662 Mil.
Long-Term Debt was $2,358 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)
=(489.183 / 3584.9) / (528.734 / 3492.522)
=0.13645653 / 0.15139031
=0.9014

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)
=(533.911 / 3492.522) / (533.483 / 3584.9)
=0.59251681 / 0.60009931
=0.9874

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 - (1647.879 + 105.28) / 9432.999) / (1 - (1532.691 + 115.243) / 8510.266)
=0.81414617 / 0.80635928
=1.0097

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
=3584.9 / 3492.522
=1.0265

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))
=(197.332 / (197.332 + 115.243)) / (197.883 / (197.883 + 105.28))
=0.63131089 / 0.65272807
=0.9672

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)
=(1118.306 / 3584.9) / (1095.565 / 3492.522)
=0.31194901 / 0.31368879
=0.9945

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)
=((2792.067 + 657.032) / 9432.999) / ((2358.474 + 662.005) / 8510.266)
=0.36564183 / 0.35492181
=1.0302

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
=(673.406 - -2.37 - 920.776) / 9432.999
=-0.026

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 -2.68 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.17560.96060.81771.13960.90780.92881.12010.91160.8990.9457
GMI 0.98671.00490.97821.01240.95230.98630.97020.96040.9820.98
AQI 0.98810.91871.08961.02371.01190.98361.04991.01190.98681.029
SGI 1.16991.2361.09720.88871.16411.17221.07021.08171.09621.0093
DEPI 0.97370.93470.98210.97310.89450.96470.96470.94550.96420.9709
SGAI 0.96990.9581.03211.03811.0090.95870.9991.05230.96651.0216
LVGI 0.98260.92051.030.84351.00450.83681.24121.03330.88941.1645
TATA -0.0231-0.0264-0.0409-0.0303-0.035-0.0343-0.027-0.0323-0.0232-0.0287
M-score -2.28-2.43-2.75-2.53-2.62-2.51-2.51-2.68-2.57-2.72

Roper Technologies Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.95360.91160.9620.84820.94640.8990.90410.89050.90140.9457
GMI 0.95890.96040.96390.96310.97030.9820.98260.98780.98740.98
AQI 1.00691.01191.01090.97230.98670.98681.00881.01311.00971.029
SGI 1.08081.08171.10451.11611.10561.09621.07371.04331.02651.0093
DEPI 0.93590.94550.95220.9570.96460.96420.97750.98420.96720.9709
SGAI 1.04471.05231.04180.99130.98440.96650.96490.98790.99451.0216
LVGI 1.03551.03331.02960.84580.90670.88941.01851.01131.03021.1645
TATA -0.0319-0.0323-0.035-0.0288-0.0223-0.0232-0.0259-0.0276-0.026-0.0287
M-score -2.65-2.68-2.62-2.63-2.53-2.57-2.63-2.68-2.68-2.72
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