Switch to:
Dana Holding Corp (NYSE:DAN)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

DAN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.06   Max: 3.69
Current: -2.74

-4.06
3.69

During the past 13 years, the highest Beneish M-Score of Dana Holding Corp was 3.69. The lowest was -4.06. And the median was -2.65.


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 * 1.0121+0.528 * 1.0337+0.404 * 0.9866+0.892 * 0.9027+0.115 * 1.2227
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0614+4.679 * -0.0441-0.327 * 1.0179
=-2.74

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $804 Mil.
Revenue was 1449 + 1375 + 1468 + 1609 = $5,901 Mil.
Gross Profit was 199 + 172 + 213 + 236 = $820 Mil.
Total Current Assets was $2,563 Mil.
Total Assets was $4,468 Mil.
Property, Plant and Equipment(Net PPE) was $1,210 Mil.
Depreciation, Depletion and Amortization(DDA) was $172 Mil.
Selling, General & Admin. Expense(SGA) was $389 Mil.
Total Current Liabilities was $1,152 Mil.
Long-Term Debt was $1,574 Mil.
Net Income was 45 + -82 + 119 + 59 = $141 Mil.
Non Operating Income was -3 + -8 + -39 + -11 = $-61 Mil.
Cash Flow from Operations was -27 + 140 + 138 + 148 = $399 Mil.
Accounts Receivable was $880 Mil.
Revenue was 1608 + 1582 + 1637 + 1710 = $6,537 Mil.
Gross Profit was 228 + 223 + 240 + 248 = $939 Mil.
Total Current Assets was $2,860 Mil.
Total Assets was $4,738 Mil.
Property, Plant and Equipment(Net PPE) was $1,131 Mil.
Depreciation, Depletion and Amortization(DDA) was $203 Mil.
Selling, General & Admin. Expense(SGA) was $406 Mil.
Total Current Liabilities was $1,268 Mil.
Long-Term Debt was $1,572 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)
=(804 / 5901) / (880 / 6537)
=0.13624809 / 0.13461833
=1.0121

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)
=(172 / 6537) / (199 / 5901)
=0.14364387 / 0.1389595
=1.0337

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 - (2563 + 1210) / 4468) / (1 - (2860 + 1131) / 4738)
=0.15555058 / 0.15766146
=0.9866

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
=5901 / 6537
=0.9027

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))
=(203 / (203 + 1131)) / (172 / (172 + 1210))
=0.15217391 / 0.12445731
=1.2227

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)
=(389 / 5901) / (406 / 6537)
=0.06592103 / 0.062108
=1.0614

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)
=((1574 + 1152) / 4468) / ((1572 + 1268) / 4738)
=0.61011638 / 0.59940903
=1.0179

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
=(141 - -61 - 399) / 4468
=-0.0441

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 -2.74 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.28640.67011.450.98480.94310.73351.03460.9740.9733
GMI 0.70741.70990.7070.43090.91510.87440.9920.95171.0194
AQI 0.5581.61210.90280.8111.14511.01110.77851.12620.9758
SGI 1.02550.92820.64581.16851.24280.95150.9370.97750.9158
DEPI 00.71270.90831.11910.9781.05541.0371.1491.1818
SGAI 0.84940.99471.43811.09910.81871.11521.00821.02551.0388
LVGI 1.47721.01320.89561.02211.02140.93771.34561.05471.0484
TATA -0.01430.0253-0.1459-0.0543-0.0285-0.0076-0.0708-0.0168-0.0451
M-score -2.84-2.14-3.31-2.99-2.41-2.86-3.04-2.58-2.79

Dana Holding Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.03830.81320.96420.99880.9740.94990.99020.91290.97331.0121
GMI 0.99250.95920.96170.95530.95170.9650.9640.97671.01941.0337
AQI 0.77850.84050.84410.8351.12621.1311.13871.26010.97580.9866
SGI 0.93370.97580.9840.98590.97750.9640.96190.94110.91580.9027
DEPI 1.0371.06291.1051.0811.1491.12871.16031.17511.18181.2227
SGAI 1.01891.00291.01631.02911.02551.02220.99951.02411.03881.0614
LVGI 1.34561.32121.29821.03471.05471.05771.06731.04431.04841.0179
TATA -0.0688-0.0739-0.0769-0.0762-0.0205-0.0129-0.00290.0054-0.0458-0.0441
M-score -3.03-3.20-3.06-2.95-2.60-2.59-2.50-2.49-2.80-2.74
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)
FEEDBACK