Roper Technologies (FRA:ROP) Beneish M-Score : -2.48 (As of Apr. 27, 2024)

View and export this data going back to 1996. Start your Free Trial

What is Roper Technologies Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Roper Technologies's Beneish M-Score or its related term are showing as below:

FRA:ROP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83 Med: -2.53 Max: -1.61
Current: -2.48

During the past 13 years, the highest Beneish M-Score of Roper Technologies was -1.61. The lowest was -2.83. And the median was -2.53.

Roper Technologies Beneish M-Score Historical Data

The historical data trend for Roper Technologies's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Roper Technologies Beneish M-Score Chart

Roper Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.53

-2.83

-2.68

-1.61

-2.48

Roper Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.61	-2.11	-1.95	-1.99	-2.48

Competitive Comparison of Roper Technologies's Beneish M-Score

For the Software - Application subindustry, Roper Technologies's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Roper Technologies's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Roper Technologies's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Roper Technologies's Beneish M-Score falls into.

Roper Technologies Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9732

0.528 * 1.0019

0.404 * 1.0194

0.892 * 1.12

0.115 * 1.0234

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0003

4.679 * -0.029251

0.327 * 0.9513

-2.51

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €902 Mil.
Revenue was 1479.579 + 1464.906 + 1413.298 + 1372.7 = €5,730 Mil.
Gross Profit was 1031.808 + 1027.233 + 984.933 + 951.372 = €3,995 Mil.
Total Current Assets was €1,358 Mil.
Total Assets was €25,830 Mil.
Property, Plant and Equipment(Net PPE) was €110 Mil.
Depreciation, Depletion and Amortization(DDA) was €701 Mil.
Selling, General, & Admin. Expense(SGA) was €2,377 Mil.
Total Current Liabilities was €2,717 Mil.
Long-Term Debt & Capital Lease Obligation was €5,347 Mil.
Net Income was 356.713 + 325.326 + 336.803 + 264.415 = €1,283 Mil.
Non Operating Income was 58.688 + 36.449 + 58.334 + -3.269 = €150 Mil.
Cash Flow from Operations was 570.191 + 590.31 + 294.991 + 433.096 = €1,889 Mil.

Total Receivables was €828 Mil.
Revenue was 1350.77 + 1363.803 + 1240.017 + 1162.058 = €5,117 Mil.
Gross Profit was 946.171 + 951.218 + 862.279 + 814.658 = €3,574 Mil.
Total Current Assets was €1,824 Mil.
Total Assets was €25,470 Mil.
Property, Plant and Equipment(Net PPE) was €81 Mil.
Depreciation, Depletion and Amortization(DDA) was €619 Mil.
Selling, General, & Admin. Expense(SGA) was €2,121 Mil.
Total Current Liabilities was €2,731 Mil.
Long-Term Debt & Capital Lease Obligation was €5,629 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(902.328 / 5730.483)	/	(827.888 / 5116.648)
	=	0.157461	/	0.161803
	=	0.9732

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)
	=	(3574.326 / 5116.648)	/	(3995.346 / 5730.483)
	=	0.698568	/	0.697209
	=	1.0019

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1358.444 + 109.673) / 25829.597)	/	(1 - (1824.186 + 80.523) / 25469.875)
	=	0.943161	/	0.925217
	=	1.0194

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	5730.483	/	5116.648
	=	1.12

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(618.735 / (618.735 + 80.523))	/	(700.571 / (700.571 + 109.673))
	=	0.884845	/	0.864642
	=	1.0234

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(2376.647 / 5730.483)	/	(2121.333 / 5116.648)
	=	0.414738	/	0.414594
	=	1.0003

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((5346.66 + 2717.254) / 25829.597)	/	((5628.6 + 2730.52) / 25469.875)
	=	0.312197	/	0.328196
	=	0.9513

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
	=	(1283.257 - 150.202	-	1888.588)	/	25829.597
	=	-0.029251

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Roper Technologies has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.

Roper Technologies Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Roper Technologies's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Roper Technologies (FRA:ROP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Roper Technologies Inc (FRA:ROP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ROP:USA EG:Mexico R1OP34:Brazil

Address

6901 Professional Parkway East, Suite 200, Sarasota, FL, USA, 34240

Website

https://www.ropertech.com

Roper is a diversified technology company that operates through three segments: application software; network software and systems; and technology enabled products. The firm's culture emphasizes acquiring asset-light, cash-generative businesses. Roper then reinvests this excess cash in businesses that yield incrementally higher rates of return. While the businesses are managed in a decentralized manner, Roper does not passively manage its portfolio. Instead, Roper manages its businesses through the Socratic method and empowers decision-makers through group executive coaching. Roper has now rotated a clear majority of its business from legacy industrial products into technology software in mature, niche markets with large quantities of deferred revenue.