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Roper Technologies Inc (NYSE:ROP)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

ROP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88   Max: -2.07
Current: -2.64

-3.88
-2.07

During the past 13 years, the highest Beneish M-Score of Roper Technologies Inc was -2.07. The lowest was -3.88. And the median was -2.54.


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 * 0.9803+0.528 * 0.9779+0.404 * 1.0081+0.892 * 1.0385+0.115 * 0.9435
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0682+4.679 * -0.0321-0.327 * 1.007
=-2.64

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $498 Mil.
Revenue was 945.144 + 931.558 + 902.423 + 943.64 = $3,723 Mil.
Gross Profit was 578.493 + 567.52 + 559.519 + 579.091 = $2,285 Mil.
Total Current Assets was $1,775 Mil.
Total Assets was $10,480 Mil.
Property, Plant and Equipment(Net PPE) was $104 Mil.
Depreciation, Depletion and Amortization(DDA) was $233 Mil.
Selling, General & Admin. Expense(SGA) was $1,240 Mil.
Total Current Liabilities was $772 Mil.
Long-Term Debt was $3,087 Mil.
Net Income was 167.079 + 158.069 + 151.416 + 208.597 = $685 Mil.
Non Operating Income was -0.534 + -1.334 + -0.129 + 60.6 = $59 Mil.
Cash Flow from Operations was 316.541 + 169.76 + 207.072 + 269.258 = $963 Mil.
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.



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)
=(498.006 / 3722.765) / (489.183 / 3584.9)
=0.13377315 / 0.13645653
=0.9803

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)
=(2151.296 / 3584.9) / (2284.623 / 3722.765)
=0.60009931 / 0.61368982
=0.9779

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 - (1774.811 + 103.847) / 10480.128) / (1 - (1647.879 + 105.28) / 9432.999)
=0.82074093 / 0.81414617
=1.0081

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
=3722.765 / 3584.9
=1.0385

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))
=(197.883 / (197.883 + 105.28)) / (233.144 / (233.144 + 103.847))
=0.65272807 / 0.69184043
=0.9435

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)
=(1240.487 / 3722.765) / (1118.306 / 3584.9)
=0.33321657 / 0.31194901
=1.0682

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)
=((3087.151 + 771.74) / 10480.128) / ((2792.067 + 657.032) / 9432.999)
=0.36821029 / 0.36564183
=1.007

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
=(685.161 - 58.603 - 962.631) / 10480.128
=-0.0321

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 -2.64 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 local exchange's 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 0.98810.91871.08961.02371.01190.98361.04991.01190.98641.0294
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 0.98260.92051.030.84351.00450.83681.24121.03330.88671.168
TATA -0.0231-0.0264-0.0393-0.0303-0.035-0.0343-0.027-0.0323-0.0232-0.0287
M-score -2.28-2.43-2.74-2.53-2.62-2.51-2.51-2.68-2.57-2.72

Roper Technologies Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.84820.94640.8990.90410.89050.90140.94571.02011.03570.9803
GMI 0.96310.97030.9820.98260.98780.98740.980.97650.97670.9779
AQI 0.97230.98670.98641.00881.01311.00971.02941.03851.03381.0081
SGI 1.11611.10561.09621.07371.04331.02651.00931.01081.02131.0385
DEPI 0.9570.96460.96420.97750.98420.96720.97090.95520.93360.9435
SGAI 0.99130.98440.96650.96490.98790.99451.02161.05341.06611.0682
LVGI 0.84580.90670.88671.01851.01131.03021.1681.0281.05621.007
TATA -0.024-0.0176-0.0185-0.0259-0.0276-0.026-0.0287-0.0238-0.0246-0.0321
M-score -2.61-2.51-2.55-2.63-2.68-2.68-2.72-2.58-2.58-2.64
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