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Roper Technologies Inc (NYSE:ROP)
Beneish M-Score
-2.58 (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 -2.58 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: -2.58

-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 * 1.0357+0.528 * 0.9767+0.404 * 1.0338+0.892 * 1.0213+0.115 * 0.9336
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0661+4.679 * -0.0246-0.327 * 1.0562
=-2.58

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $509 Mil.
Revenue was 931.558 + 902.423 + 943.64 + 883.933 = $3,662 Mil.
Gross Profit was 567.52 + 559.519 + 579.091 + 533.483 = $2,240 Mil.
Total Current Assets was $1,550 Mil.
Total Assets was $10,297 Mil.
Property, Plant and Equipment(Net PPE) was $104 Mil.
Depreciation, Depletion and Amortization(DDA) was $225 Mil.
Selling, General & Admin. Expense(SGA) was $1,212 Mil.
Total Current Liabilities was $733 Mil.
Long-Term Debt was $3,086 Mil.
Net Income was 158.069 + 151.416 + 208.597 + 160.417 = $678 Mil.
Non Operating Income was -1.334 + -0.129 + 60.6 + 0.251 = $59 Mil.
Cash Flow from Operations was 169.76 + 207.072 + 269.258 + 226.619 = $873 Mil.
Accounts Receivable was $482 Mil.
Revenue was 889.541 + 865.281 + 946.145 + 884.122 = $3,585 Mil.
Gross Profit was 533.911 + 518.161 + 565.741 + 524.04 = $2,142 Mil.
Total Current Assets was $1,587 Mil.
Total Assets was $9,034 Mil.
Property, Plant and Equipment(Net PPE) was $112 Mil.
Depreciation, Depletion and Amortization(DDA) was $198 Mil.
Selling, General & Admin. Expense(SGA) was $1,114 Mil.
Total Current Liabilities was $655 Mil.
Long-Term Debt was $2,517 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)
=(509.437 / 3661.554) / (481.599 / 3585.089)
=0.13913136 / 0.1343339
=1.0357

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)
=(2141.853 / 3585.089) / (2239.613 / 3661.554)
=0.5974337 / 0.61165642
=0.9767

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 - (1550.173 + 104.282) / 10297.118) / (1 - (1587.282 + 112.374) / 9034.096)
=0.83932834 / 0.81186208
=1.0338

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
=3661.554 / 3585.089
=1.0213

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))
=(197.875 / (197.875 + 112.374)) / (224.857 / (224.857 + 104.282))
=0.63779416 / 0.68316729
=0.9336

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)
=(1212.496 / 3661.554) / (1113.576 / 3585.089)
=0.33114246 / 0.31061321
=1.0661

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)
=((3086.263 + 733.041) / 10297.118) / ((2517.499 + 654.941) / 9034.096)
=0.37091 / 0.35116297
=1.0562

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
=(678.499 - 59.388 - 872.709) / 10297.118
=-0.0246

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 -2.58 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 0.98810.91871.08961.02371.01190.98361.04991.01190.98641.0294
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.9620.84820.94640.8990.90410.89050.90140.94571.02011.0357
GMI 0.96390.96310.97030.9820.98260.98780.98740.980.97650.9767
AQI 1.01090.97230.98670.98641.00881.01311.00971.02941.03851.0338
SGI 1.10451.11611.10561.09621.07371.04331.02651.00931.01081.0213
DEPI 0.95220.9570.96460.96420.97750.98420.96720.97090.95520.9336
SGAI 1.04180.99130.98440.96650.96490.98790.99451.02161.05341.0661
LVGI 1.02960.84580.90670.88671.01851.01131.03021.1681.0281.0562
TATA -0.0302-0.024-0.0176-0.0185-0.0259-0.0276-0.026-0.0287-0.0238-0.0246
M-score -2.60-2.61-2.51-2.55-2.63-2.68-2.68-2.72-2.58-2.58
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