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Dillard's Inc (NYSE:DDS)
Beneish M-Score
-2.93 (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.

Dillard's Inc has a M-score of -2.93 suggests that the company is not a manipulator.

DDS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.78   Max: 4.2
Current: -2.93

-3.78
4.2

During the past 13 years, the highest Beneish M-Score of Dillard's Inc was 4.20. The lowest was -3.78. And the median was -2.85.


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 Dillard's 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 * 0.8735+0.528 * 1.0461+0.404 * 1.0529+0.892 * 0.9671+0.115 * 0.9295
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0209+4.679 * -0.0689-0.327 * 1.0579
=-2.93

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

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $41 Mil.
Revenue was 1488.75 + 1538.797 + 2117.429 + 1472.854 = $6,618 Mil.
Gross Profit was 495.391 + 600.218 + 660.294 + 559.934 = $2,316 Mil.
Total Current Assets was $1,737 Mil.
Total Assets was $3,843 Mil.
Property, Plant and Equipment(Net PPE) was $1,852 Mil.
Depreciation, Depletion and Amortization(DDA) was $252 Mil.
Selling, General & Admin. Expense(SGA) was $1,683 Mil.
Total Current Liabilities was $764 Mil.
Long-Term Debt was $818 Mil.
Net Income was 12.083 + 77.431 + 84.105 + 45.744 = $219 Mil.
Non Operating Income was 0.781 + 0.095 + -1.163 + 9.4 = $9 Mil.
Cash Flow from Operations was 66.568 + 20.176 + 366.935 + 21.317 = $475 Mil.
Accounts Receivable was $49 Mil.
Revenue was 1550.844 + 1613.418 + 2179.556 + 1499.144 = $6,843 Mil.
Gross Profit was 530.513 + 652.999 + 746.887 + 574.701 = $2,505 Mil.
Total Current Assets was $1,764 Mil.
Total Assets was $4,016 Mil.
Property, Plant and Equipment(Net PPE) was $1,999 Mil.
Depreciation, Depletion and Amortization(DDA) was $250 Mil.
Selling, General & Admin. Expense(SGA) was $1,704 Mil.
Total Current Liabilities was $741 Mil.
Long-Term Debt was $821 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)
=(41.21 / 6617.83) / (48.783 / 6842.962)
=0.00622712 / 0.00712893
=0.8735

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)
=(2505.1 / 6842.962) / (2315.837 / 6617.83)
=0.36608416 / 0.34993903
=1.0461

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 - (1736.634 + 1851.831) / 3843.008) / (1 - (1764.096 + 1998.875) / 4015.593)
=0.06623536 / 0.06291026
=1.0529

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
=6617.83 / 6842.962
=0.9671

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))
=(250.24 / (250.24 + 1998.875)) / (251.804 / (251.804 + 1851.831))
=0.11126154 / 0.11969947
=0.9295

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)
=(1682.692 / 6617.83) / (1704.365 / 6842.962)
=0.25426643 / 0.24906831
=1.0209

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)
=((817.689 + 763.86) / 3843.008) / ((820.678 + 741.454) / 4015.593)
=0.41153935 / 0.38901652
=1.0579

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
=(219.363 - 9.113 - 474.996) / 3843.008
=-0.0689

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.

Dillard's Inc has a M-score of -2.93 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.

Dillard's Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.82671.09718.53060.80630.40841.08091.04160.98721.80850.8373
GMI 0.97951.01441.1340.90650.93720.98850.99251.00580.99731.0392
AQI 0.99631.01210.47740.91071.06373.62941.04650.950.95651.0978
SGI 1.0150.94380.94810.8911.00511.02351.0540.99111.01320.9962
DEPI 0.99981.02010.98141.010.94360.95860.93640.95420.97260.9615
SGAI 1.01471.04670.98970.95810.980.97830.96420.98091.0061.0072
LVGI 0.89621.01511.08220.94531.05360.98920.99771.00610.98441.0468
TATA -0.0243-0.0361-0.1433-0.1215-0.077-0.0196-0.0474-0.0444-0.0675-0.0489
M-score -2.72-2.613.56-3.38-3.41-1.42-2.60-2.73-2.06-2.82

Dillard's Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 0.69630.74331.33111.80852.94912.46611.10810.83730.75320.8735
GMI 1.01511.01821.01290.99730.99871.00591.01131.03921.04851.0461
AQI 0.98140.99041.00070.95650.95631.00560.99731.09781.10981.0529
SGI 0.99050.99120.9871.01321.0171.02331.02060.99620.98160.9671
DEPI 0.97590.98951.00050.97260.97140.96950.94930.96150.94640.9295
SGAI 0.9870.990.99991.0061.00581.00020.99861.00721.01331.0209
LVGI 0.99270.97620.98250.98440.96751.01081.05241.04681.04621.0579
TATA -0.0477-0.0452-0.0506-0.0675-0.0476-0.0538-0.0398-0.0489-0.0373-0.0689
M-score -2.99-2.92-2.41-2.06-0.91-1.36-2.57-2.82-2.85-2.93
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