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Dillards 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.

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

DDS' s 10-Year Beneish M-Score Range
Min: -4.11   Max: 11.59
Current: -2.93

-4.11
11.59

During the past 13 years, the highest Beneish M-Score of Dillards Inc was 11.59. The lowest was -4.11. 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 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 * 0.7433+0.528 * 1.0182+0.404 * 0.9904+0.892 * 0.9912+0.115 * 0.9895
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.99+4.679 * -0.0465-0.327 * 0.9762
=-2.93

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $19 Mil.
Revenue was 1512.888 + 1588.541 + 2078.675 + 1506.925 = $6,687 Mil.
Gross Profit was 536.619 + 649.317 + 706.974 + 569.518 = $2,462 Mil.
Total Current Assets was $1,734 Mil.
Total Assets was $4,070 Mil.
Property, Plant and Equipment(Net PPE) was $2,082 Mil.
Depreciation, Depletion and Amortization(DDA) was $252 Mil.
Selling, General & Admin. Expense(SGA) was $1,665 Mil.
Total Current Liabilities was $745 Mil.
Long-Term Debt was $821 Mil.
Net Income was 34.449 + 111.683 + 119.102 + 50.868 = $316 Mil.
Non Operating Income was 0.05 + 0.389 + 1.182 + 0.002 = $2 Mil.
Cash Flow from Operations was -28.023 + 161.859 + 328.755 + 41.282 = $504 Mil.
Accounts Receivable was $26 Mil.
Revenue was 1516.796 + 1589.381 + 2154.056 + 1486.3 = $6,747 Mil.
Gross Profit was 539.974 + 651.596 + 771.286 + 566.7 = $2,530 Mil.
Total Current Assets was $1,649 Mil.
Total Assets was $4,107 Mil.
Property, Plant and Equipment(Net PPE) was $2,199 Mil.
Depreciation, Depletion and Amortization(DDA) was $263 Mil.
Selling, General & Admin. Expense(SGA) was $1,697 Mil.
Total Current Liabilities was $798 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)
=(19.331 / 6687.029) / (26.239 / 6746.533)
=0.00289082 / 0.00388926
=0.7433

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)
=(649.317 / 6746.533) / (536.619 / 6687.029)
=0.37494162 / 0.36823947
=1.0182

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 - (1733.935 + 2081.577) / 4070.127) / (1 - (1649.325 + 2198.693) / 4107.463)
=0.06255702 / 0.06316429
=0.9904

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
=6687.029 / 6746.533
=0.9912

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))
=(262.726 / (262.726 + 2198.693)) / (251.685 / (251.685 + 2081.577))
=0.10673762 / 0.1078683
=0.9895

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)
=(1665.137 / 6687.029) / (1696.888 / 6746.533)
=0.24900999 / 0.25152
=0.99

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)
=((821.133 + 745.361) / 4070.127) / ((821.935 + 797.533) / 4107.463)
=0.38487595 / 0.39427452
=0.9762

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
=(316.102 - 1.623 - 503.873) / 4070.127
=-0.0465

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 -2.93 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.

Dillards Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.00791.31610.82671.097115.74440.43810.40831.07861.0410.9872
GMI 0.89511.0250.97951.01441.1340.90650.93650.98830.99331.0058
AQI 1.28890.98520.99631.01210.47740.91111.06413.62551.04670.95
SGI 1.02710.98591.0150.94380.94810.8911.00431.02341.0550.9911
DEPI 0.97040.99720.99981.02010.98141.00990.94370.95820.93680.9542
SGAI 0.96980.98391.01471.04670.98970.95810.98070.97840.96330.9809
LVGI 0.83840.96680.89621.01511.08220.94521.05360.98920.99771.0061
TATA -0.0753-0.0361-0.0266-0.0373-0.1245-0.1054-0.0754-0.0312-0.0488-0.0457
M-score -3.60-2.35-2.73-2.6110.29-3.65-3.40-1.48-2.61-2.73

Dillards Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 1.38571.64981.46341.04150.86690.76121.00510.98680.69630.7433
GMI 0.99980.99820.99850.99260.98380.98420.98791.00621.01511.0182
AQI 3.65324.30923.7021.04650.98370.9940.98020.950.98140.9904
SGI 1.03381.03291.03681.05411.04141.03211.02430.99160.99050.9912
DEPI 1.17310.96610.96030.93680.92160.91920.92740.95420.97590.9895
SGAI 0.97250.97050.96130.96410.97210.97920.98780.98050.9870.99
LVGI 1.04451.08890.90470.99771.04080.98931.10581.00610.99270.9762
TATA -0.0684-0.0667-0.0699-0.0488-0.0511-0.0371-0.0279-0.0457-0.049-0.0465
M-score -1.33-0.86-1.22-2.61-2.84-2.86-2.64-2.73-2.99-2.93
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