Switch to:
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 10-Year Beneish M-Score Range
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 * 0.8905+0.528 * 0.9878+0.404 * 1.0131+0.892 * 1.0433+0.115 * 0.9842
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9879+4.679 * -0.0276-0.327 * 1.0113
=-2.68

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 171.28 + 155.773 + 185.936 + 155.51 = $668 Mil.
Non Operating Income was -1.52 + -0.679 + -0.422 + 0.552 = $-2 Mil.
Cash Flow from Operations was 172.549 + 260.399 + 261.209 + 226.102 = $920 Mil.
Accounts Receivable was $518 Mil.
Revenue was 885.175 + 834.052 + 889.173 + 827.81 = $3,436 Mil.
Gross Profit was 523.182 + 488.936 + 533.22 + 482.625 = $2,028 Mil.
Total Current Assets was $1,525 Mil.
Total Assets was $8,262 Mil.
Property, Plant and Equipment(Net PPE) was $116 Mil.
Depreciation, Depletion and Amortization(DDA) was $196 Mil.
Selling, General & Admin. Expense(SGA) was $1,080 Mil.
Total Current Liabilities was $635 Mil.
Long-Term Debt was $2,234 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)
=(481.599 / 3585.089) / (518.378 / 3436.21)
=0.1343339 / 0.15085749
=0.8905

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)
=(518.161 / 3436.21) / (533.911 / 3585.089)
=0.59017435 / 0.5974337
=0.9878

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 - (1587.282 + 112.374) / 9034.096) / (1 - (1524.525 + 116.394) / 8262.146)
=0.81186208 / 0.80139312
=1.0131

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
=3585.089 / 3436.21
=1.0433

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))
=(196.238 / (196.238 + 116.394)) / (197.875 / (197.875 + 112.374))
=0.62769646 / 0.63779416
=0.9842

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)
=(1113.576 / 3585.089) / (1080.459 / 3436.21)
=0.31061321 / 0.31443334
=0.9879

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)
=((2517.499 + 654.941) / 9034.096) / ((2233.809 + 635.272) / 8262.146)
=0.35116297 / 0.34725615
=1.0113

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
=(668.499 - -2.069 - 920.259) / 9034.096
=-0.0276

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

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 -0.0504-0.0231-0.0264-0.0409-0.0303-0.035-0.0343-0.027-0.0323-0.0232
M-score -2.53-2.28-2.43-2.75-2.53-2.62-2.51-2.51-2.68-2.57

Roper Technologies Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.11211.16950.95360.91160.9620.84820.94640.8990.90410.8905
GMI 0.96460.96080.95890.96040.96390.96310.97030.9820.98260.9878
AQI 1.06111.11461.00691.01191.01090.97230.98670.98681.00881.0131
SGI 1.05471.06611.08081.08171.10451.11611.10561.09621.07371.0433
DEPI 0.94620.94590.93590.94550.95220.9570.96460.96420.97750.9842
SGAI 1.01561.04861.04471.05231.04180.99130.98440.96650.96490.9879
LVGI 1.24671.48191.03551.03331.02960.84580.90670.88941.01851.0113
TATA -0.0287-0.0279-0.0319-0.0323-0.035-0.0288-0.0223-0.0232-0.0259-0.0276
M-score -2.55-2.54-2.65-2.68-2.62-2.63-2.53-2.57-2.63-2.68
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK