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Dana Inc (NYSE:DAN)
Beneish M-Score
-2.80 (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 Inc has a M-score of -2.80 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: -2.8

-4.06
3.69

During the past 13 years, the highest Beneish M-Score of Dana Inc 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 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 * 1.0111+0.528 * 1.0292+0.404 * 0.9726+0.892 * 0.9071+0.115 * 1.1532
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0886+4.679 * -0.0512-0.327 * 1.0496
=-2.80

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $808 Mil.
Revenue was 1546 + 1449 + 1375 + 1468 = $5,838 Mil.
Gross Profit was 233 + 199 + 172 + 213 = $817 Mil.
Total Current Assets was $2,637 Mil.
Total Assets was $4,567 Mil.
Property, Plant and Equipment(Net PPE) was $1,241 Mil.
Depreciation, Depletion and Amortization(DDA) was $174 Mil.
Selling, General & Admin. Expense(SGA) was $394 Mil.
Total Current Liabilities was $1,237 Mil.
Long-Term Debt was $1,637 Mil.
Net Income was 53 + 45 + -82 + 119 = $135 Mil.
Non Operating Income was -17 + -3 + -8 + -39 = $-67 Mil.
Cash Flow from Operations was 185 + -27 + 140 + 138 = $436 Mil.
Accounts Receivable was $881 Mil.
Revenue was 1609 + 1608 + 1582 + 1637 = $6,436 Mil.
Gross Profit was 236 + 228 + 223 + 240 = $927 Mil.
Total Current Assets was $2,879 Mil.
Total Assets was $4,790 Mil.
Property, Plant and Equipment(Net PPE) was $1,168 Mil.
Depreciation, Depletion and Amortization(DDA) was $193 Mil.
Selling, General & Admin. Expense(SGA) was $399 Mil.
Total Current Liabilities was $1,302 Mil.
Long-Term Debt was $1,570 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)
=(808 / 5838) / (881 / 6436)
=0.13840356 / 0.13688626
=1.0111

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)
=(927 / 6436) / (817 / 5838)
=0.14403356 / 0.13994519
=1.0292

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 - (2637 + 1241) / 4567) / (1 - (2879 + 1168) / 4790)
=0.1508649 / 0.15511482
=0.9726

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
=5838 / 6436
=0.9071

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))
=(193 / (193 + 1168)) / (174 / (174 + 1241))
=0.14180749 / 0.1229682
=1.1532

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)
=(394 / 5838) / (399 / 6436)
=0.06748887 / 0.06199503
=1.0886

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)
=((1637 + 1237) / 4567) / ((1570 + 1302) / 4790)
=0.62929713 / 0.59958246
=1.0496

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
=(135 - -67 - 436) / 4567
=-0.0512

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 Inc has a M-score of -2.80 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 Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.28640.73861.36240.98110.76840.87261.03460.9740.9733
GMI 0.70741.78630.67670.42280.92470.88190.9920.95171.0194
AQI 0.5581.61210.91280.80211.15121.00580.77851.09661.0022
SGI 1.02550.84210.71191.13261.27410.95760.9370.97750.9158
DEPI 00.77530.8351.11910.9781.05541.0371.1491.1818
SGAI 0.84940.98581.45111.12560.80061.08791.0321.02551.0388
LVGI 1.47721.01320.90531.01121.00910.94911.34561.05081.0523
TATA -0.01430.0342-0.1244-0.0541-0.0337-0.0066-0.0661-0.0126-0.0451
M-score -2.84-2.07-3.26-3.03-2.56-2.72-3.02-2.57-2.78

Dana Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.81170.96420.99880.9740.94990.99020.91290.97331.01211.0111
GMI 0.95890.96170.95530.95170.9650.9640.97671.01941.03371.0292
AQI 0.84050.84410.8351.09661.1311.13871.26011.00220.98660.9726
SGI 0.97770.9840.98590.97750.9640.96190.94110.91580.90270.9071
DEPI 1.06291.1051.0811.1491.12871.16031.17511.18181.22271.1532
SGAI 1.01791.03121.03421.02551.02220.99951.02411.03881.06141.0886
LVGI 1.32121.29821.03471.05081.05771.06731.04431.05231.01791.0496
TATA -0.0758-0.0746-0.0754-0.0133-0.00130.00770.0183-0.0451-0.0441-0.0512
M-score -3.21-3.05-2.94-2.58-2.54-2.45-2.43-2.78-2.74-2.80
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