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Dana Holding Corp (NYSE:DAN)
Beneish M-Score
-2.44 (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 -2.44 suggests that the company is not a manipulator.

DAN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.13   Max: 4.07
Current: -2.44

-4.13
4.07

During the past 13 years, the highest Beneish M-Score of Dana Holding Corp was 4.07. The lowest was -4.13. 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 * 0.9129+0.528 * 0.9767+0.404 * 1.2601+0.892 * 0.9411+0.115 * 1.1751
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0241+4.679 * 0.0165-0.327 * 1.0443
=-2.44

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $775 Mil.
Revenue was 1468 + 1609 + 1608 + 1582 = $6,267 Mil.
Gross Profit was 213 + 236 + 228 + 223 = $900 Mil.
Total Current Assets was $2,681 Mil.
Total Assets was $4,600 Mil.
Property, Plant and Equipment(Net PPE) was $1,141 Mil.
Depreciation, Depletion and Amortization(DDA) was $184 Mil.
Selling, General & Admin. Expense(SGA) was $400 Mil.
Total Current Liabilities was $1,196 Mil.
Long-Term Debt was $1,566 Mil.
Net Income was 119 + 59 + 63 + 109 = $350 Mil.
Non Operating Income was -39 + -11 + 9 + -134 = $-175 Mil.
Cash Flow from Operations was 138 + 148 + -20 + 183 = $449 Mil.
Accounts Receivable was $902 Mil.
Revenue was 1637 + 1710 + 1688 + 1624 = $6,659 Mil.
Gross Profit was 240 + 248 + 234 + 212 = $934 Mil.
Total Current Assets was $3,141 Mil.
Total Assets was $5,014 Mil.
Property, Plant and Equipment(Net PPE) was $1,200 Mil.
Depreciation, Depletion and Amortization(DDA) was $234 Mil.
Selling, General & Admin. Expense(SGA) was $415 Mil.
Total Current Liabilities was $1,303 Mil.
Long-Term Debt was $1,580 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)
=(775 / 6267) / (902 / 6659)
=0.12366363 / 0.13545577
=0.9129

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)
=(236 / 6659) / (213 / 6267)
=0.1402613 / 0.14360938
=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 - (2681 + 1141) / 4600) / (1 - (3141 + 1200) / 5014)
=0.16913043 / 0.13422417
=1.2601

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
=6267 / 6659
=0.9411

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))
=(234 / (234 + 1200)) / (184 / (184 + 1141))
=0.16317992 / 0.13886792
=1.1751

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)
=(400 / 6267) / (415 / 6659)
=0.06382639 / 0.06232167
=1.0241

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)
=((1566 + 1196) / 4600) / ((1580 + 1303) / 5014)
=0.60043478 / 0.57499003
=1.0443

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
=(350 - -175 - 449) / 4600
=0.0165

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 -2.44 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.69841.28640.73861.36240.98110.76840.87261.03460.974
GMI 1.59850.70741.78630.67670.42280.92470.88190.9920.9517
AQI 0.83130.5581.61210.91280.80211.15121.00580.77851.1262
SGI 1.10751.02550.84210.71191.13261.27410.95760.9370.9775
DEPI 0.88500.77530.8351.11910.9781.05541.0371.149
SGAI 1.08520.84940.98581.45111.12560.82031.06181.0321.0255
LVGI 1.27861.47721.01320.90531.01121.00910.94911.34561.0547
TATA -0.1899-0.01840.0253-0.1244-0.0541-0.0286-0.0066-0.0626-0.0136
M-score -3.42-2.86-2.11-3.26-3.03-2.54-2.71-3.01-2.57

Dana Holding Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.00281.05111.03460.81170.96420.99880.9740.94990.99020.9129
GMI 0.95660.98580.9920.95890.96170.95530.95170.9650.9640.9767
AQI 0.95640.94150.77850.84050.84410.8351.12621.1311.13871.2601
SGI 0.87910.89930.9370.97770.9840.98590.97750.9640.96190.9411
DEPI 1.05381.05931.0371.06291.1051.0811.1491.12871.16031.1751
SGAI 1.07451.07751.0321.01791.03121.03421.02551.02220.99951.0241
LVGI 0.94171.26041.34561.32121.29821.03471.05471.05771.06731.0443
TATA -0.0512-0.0437-0.0651-0.0723-0.0712-0.0718-0.0142-0.0030.00610.0165
M-score -2.85-2.85-3.02-3.20-3.03-2.93-2.57-2.55-2.46-2.44
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