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Dana Holding Corp (NYSE:DAN)
Beneish M-Score
-3.07 (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.

Dana Holding Corp has a M-score of -3.07 suggests that the company is not a manipulator.

DAN' s 10-Year Beneish M-Score Range
Min: -3.94   Max: 3.9
Current: -3.07

-3.94
3.9

During the past 13 years, the highest Beneish M-Score of Dana Holding Corp was 3.90. The lowest was -3.94. And the median was -2.71.


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 Dana Holding Corp 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 * 0.9466+0.528 * 0.9617+0.404 * 0.8441+0.892 * 0.984+0.115 * 1.105
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0163+4.679 * -0.0764-0.327 * 1.2982
=-3.07

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $1,060 Mil.
Revenue was 1710 + 1688 + 1624 + 1669 = $6,691 Mil.
Gross Profit was 248 + 234 + 212 + 235 = $929 Mil.
Total Current Assets was $3,258 Mil.
Total Assets was $5,212 Mil.
Property, Plant and Equipment(Net PPE) was $1,244 Mil.
Depreciation, Depletion and Amortization(DDA) was $245 Mil.
Selling, General & Admin. Expense(SGA) was $415 Mil.
Total Current Liabilities was $1,360 Mil.
Long-Term Debt was $1,568 Mil.
Net Income was 86 + 34 + 42 + 68 = $230 Mil.
Non Operating Income was 15 + 0 + 30 + 0 = $45 Mil.
Cash Flow from Operations was 193 + 0 + 284 + 106 = $583 Mil.
Accounts Receivable was $1,138 Mil.
Revenue was 1800 + 1676 + 1609 + 1715 = $6,800 Mil.
Gross Profit was 259 + 214 + 197 + 238 = $908 Mil.
Total Current Assets was $3,160 Mil.
Total Assets was $5,174 Mil.
Property, Plant and Equipment(Net PPE) was $1,179 Mil.
Depreciation, Depletion and Amortization(DDA) was $262 Mil.
Selling, General & Admin. Expense(SGA) was $415 Mil.
Total Current Liabilities was $1,415 Mil.
Long-Term Debt was $824 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)
=(1060 / 6691) / (1138 / 6800)
=0.15842176 / 0.16735294
=0.9466

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)
=(234 / 6800) / (248 / 6691)
=0.13352941 / 0.13884322
=0.9617

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 - (3258 + 1244) / 5212) / (1 - (3160 + 1179) / 5174)
=0.1362241 / 0.16138384
=0.8441

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
=6691 / 6800
=0.984

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))
=(262 / (262 + 1179)) / (245 / (245 + 1244))
=0.18181818 / 0.16453996
=1.105

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)
=(415 / 6691) / (415 / 6800)
=0.06202361 / 0.06102941
=1.0163

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)
=((1568 + 1360) / 5212) / ((824 + 1415) / 5174)
=0.56178051 / 0.43274063
=1.2982

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
=(230 - 45 - 583) / 5212
=-0.0764

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.

Dana Holding Corp has a M-score of -3.07 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.

Dana Holding Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.08810.80441.06510.71991.34960.98480.94310.88591.0975
GMI 1.06461.69330.70741.70990.7070.43090.91510.87440.992
AQI 1.26720.83450.5581.34551.08170.8111.14511.01110.7785
SGI 1.14370.95091.02550.92820.64581.16851.24280.95150.937
DEPI 1.05370.897700.78490.82471.11910.9781.05541.037
SGAI 0.84741.04330.84940.99471.43811.09910.81871.11521.0082
LVGI 0.90521.28071.47721.01570.89341.02211.02140.93771.3456
TATA 0.0127-0.1979-0.0184-0.017-0.1451-0.0543-0.0285-0.0076-0.0708
M-score -2.01-3.44-3.06-2.40-3.34-2.99-2.41-2.72-2.98

Dana Holding Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.89150.86711.00830.88281.00661.01071.04451.10140.9410.9466
GMI 0.93970.92170.89330.87390.91770.95240.98380.99250.95920.9617
AQI 0.970.82160.93271.01110.93960.95640.94150.77850.84050.8441
SGI 1.21371.14351.0420.9550.89450.87350.89480.93370.97580.984
DEPI 0.96920.9541.03221.05541.03591.05381.05931.0371.06291.105
SGAI 0.87350.89980.94171.10351.11271.11271.09091.01891.00291.0163
LVGI 1.02491.04170.98120.93770.94310.94171.26041.34561.32121.2982
TATA 0.01590.0104-0.0041-0.0076-0.0382-0.0512-0.0437-0.0723-0.0774-0.0764
M-score -2.35-2.54-2.52-2.72-2.81-2.86-2.86-2.99-3.10-3.07
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