Switch to:
Dillards, Inc. (NYSE:DDS)
Beneish M-Score
-2.73 (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.

Dillards, Inc. has a M-score of -2.73 suggests that the company is not a manipulator.

DDS' s 10-Year Beneish M-Score Range
Min: -3.8   Max: 10.36
Current: -2.73

-3.8
10.36

During the past 13 years, the highest Beneish M-Score of Dillards, Inc. was 10.36. The lowest was -3.80. And the median was -2.75.


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 Dillards, 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 * 0.9872+0.528 * 1.0058+0.404 * 0.95+0.892 * 0.9911+0.115 * 0.9542
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9809+4.679 * -0.0443-0.327 * 1.0061
=-2.73

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $31 Mil.
Revenue was 2078.675 + 1506.925 + 1516.796 + 1589.381 = $6,692 Mil.
Gross Profit was 706.974 + 569.518 + 539.974 + 651.596 = $2,468 Mil.
Total Current Assets was $1,660 Mil.
Total Assets was $4,051 Mil.
Property, Plant and Equipment(Net PPE) was $2,134 Mil.
Depreciation, Depletion and Amortization(DDA) was $257 Mil.
Selling, General & Admin. Expense(SGA) was $1,659 Mil.
Total Current Liabilities was $778 Mil.
Long-Term Debt was $822 Mil.
Net Income was 119.102 + 50.868 + 36.491 + 117.21 = $324 Mil.
Non Operating Income was 1.182 + 0.002 + 0.024 + 0 = $1 Mil.
Cash Flow from Operations was 328.755 + 41.282 + -5.158 + 136.878 = $502 Mil.
Accounts Receivable was $32 Mil.
Revenue was 2154.056 + 1486.345 + 1525.182 + 1586.012 = $6,752 Mil.
Gross Profit was 771.286 + 566.722 + 537.38 + 629.099 = $2,504 Mil.
Total Current Assets was $1,492 Mil.
Total Assets was $4,049 Mil.
Property, Plant and Equipment(Net PPE) was $2,287 Mil.
Depreciation, Depletion and Amortization(DDA) was $262 Mil.
Selling, General & Admin. Expense(SGA) was $1,706 Mil.
Total Current Liabilities was $767 Mil.
Long-Term Debt was $822 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)
=(30.84 / 6691.777) / (31.519 / 6751.595)
=0.00460864 / 0.00466838
=0.9872

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)
=(569.518 / 6751.595) / (706.974 / 6691.777)
=0.37094746 / 0.36882012
=1.0058

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 - (1660.156 + 2134.2) / 4050.739) / (1 - (1491.98 + 2287.015) / 4048.744)
=0.0632929 / 0.06662535
=0.95

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
=6691.777 / 6751.595
=0.9911

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))
=(261.572 / (261.572 + 2287.015)) / (257.237 / (257.237 + 2134.2))
=0.10263413 / 0.10756587
=0.9542

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)
=(1658.869 / 6691.777) / (1706.364 / 6751.595)
=0.24789663 / 0.25273495
=0.9809

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)
=((821.544 + 778.311) / 4050.739) / ((822.309 + 767.116) / 4048.744)
=0.39495386 / 0.39257236
=1.0061

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
=(323.671 - 1.208 - 501.757) / 4050.739
=-0.0443

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.

Dillards, Inc. has a M-score of -2.73 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.

Dillards, Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.00791.31610.82671.097115.74440.43690.40841.08091.04160.9872
GMI 0.89511.0250.97951.01441.1340.90650.93720.98850.99251.0058
AQI 1.28890.98520.99631.01210.47740.91071.06373.62941.04650.95
SGI 1.02710.98591.0150.94380.94810.8911.00511.02351.0540.9911
DEPI 0.97040.99720.99981.02010.98141.010.94360.95860.93640.9542
SGAI 0.96980.98391.01471.04670.98970.95810.980.97830.96420.9809
LVGI 0.83840.96680.89621.01511.08220.94531.05360.98920.99771.0061
TATA -0.0753-0.0361-0.0266-0.0373-0.1245-0.1054-0.077-0.0196-0.0488-0.0457
M-score -3.60-2.35-2.73-2.6110.29-3.65-3.41-1.42-2.61-2.73

Dillards, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 0.38031.08111.38511.65231.46391.04140.86750.76131.0070.9872
GMI 0.97810.98831.00060.99860.99860.99270.98310.98360.98751.0058
AQI 3.88863.62943.65434.30661.03171.04650.98360.9940.98030.95
SGI 1.03621.02331.03461.03331.03691.05421.04061.03151.02390.9911
DEPI 0.92960.95860.96540.96690.96050.93640.92110.91860.9270.9542
SGAI 0.97270.97850.97170.97010.96130.9640.97290.97980.98820.9809
LVGI 1.04970.98920.93430.96290.9460.99771.04080.98931.10581.0061
TATA -0.0122-0.0196-0.0233-0.0189-0.0697-0.0486-0.0499-0.036-0.0266-0.0443
M-score -1.94-1.42-1.11-0.59-2.31-2.61-2.83-2.85-2.63-2.73
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)
Free 7-day Trial
FEEDBACK
Hide