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Dillard's Inc (NYSE:DDS)
Beneish M-Score
-2.57 (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 -2.57 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: -2.57

-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 -2.83.


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 * 1.1081+0.528 * 1.0113+0.404 * 0.9973+0.892 * 1.0206+0.115 * 0.9493
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9986+4.679 * -0.0398-0.327 * 1.0524
=-2.57

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $47 Mil.
Revenue was 1472.854 + 1550.844 + 1613.418 + 2179.556 = $6,817 Mil.
Gross Profit was 559.934 + 530.513 + 652.999 + 746.887 = $2,490 Mil.
Total Current Assets was $2,151 Mil.
Total Assets was $4,380 Mil.
Property, Plant and Equipment(Net PPE) was $1,977 Mil.
Depreciation, Depletion and Amortization(DDA) was $253 Mil.
Selling, General & Admin. Expense(SGA) was $1,705 Mil.
Total Current Liabilities was $1,331 Mil.
Long-Term Debt was $822 Mil.
Net Income was 45.744 + 29.95 + 109.571 + 130.49 = $316 Mil.
Non Operating Income was 9.4 + 0.052 + 0.043 + -4.45 = $5 Mil.
Cash Flow from Operations was 21.317 + -29.299 + 91.273 + 401.687 = $485 Mil.
Accounts Receivable was $42 Mil.
Revenue was 1499.144 + 1512.888 + 1588.541 + 2078.675 = $6,679 Mil.
Gross Profit was 574.701 + 536.619 + 649.317 + 706.974 = $2,468 Mil.
Total Current Assets was $2,041 Mil.
Total Assets was $4,357 Mil.
Property, Plant and Equipment(Net PPE) was $2,064 Mil.
Depreciation, Depletion and Amortization(DDA) was $249 Mil.
Selling, General & Admin. Expense(SGA) was $1,673 Mil.
Total Current Liabilities was $1,214 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)
=(47.114 / 6816.672) / (41.661 / 6679.248)
=0.00691158 / 0.00623738
=1.1081

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)
=(530.513 / 6679.248) / (559.934 / 6816.672)
=0.36944443 / 0.36532974
=1.0113

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 - (2150.871 + 1976.614) / 4380.186) / (1 - (2040.709 + 2064.303) / 4357.068)
=0.05769184 / 0.05784991
=0.9973

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
=6816.672 / 6679.248
=1.0206

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))
=(249.48 / (249.48 + 2064.303)) / (253.274 / (253.274 + 1976.614))
=0.10782342 / 0.11358149
=0.9493

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)
=(1704.845 / 6816.672) / (1672.824 / 6679.248)
=0.25009932 / 0.25045095
=0.9986

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)
=((822.292 + 1330.804) / 4380.186) / ((820.921 + 1214.128) / 4357.068)
=0.49155356 / 0.46706845
=1.0524

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
=(315.755 - 5.045 - 484.978) / 4380.186
=-0.0398

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 -2.57 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 0.82671.09718.53060.80630.40871.0811.04070.98721.80850.8373
GMI 0.97951.01441.1340.90650.93650.98830.99341.00580.99731.0392
AQI 0.99631.01210.47740.91071.06373.62941.04650.950.95651.0978
SGI 1.0150.94380.94810.8911.00431.02341.0550.99111.01320.9962
DEPI 0.99981.02010.98141.010.94360.95860.93640.95420.97260.9615
SGAI 1.01471.04670.98970.95810.98070.97840.96330.98091.0061.0072
LVGI 0.89621.01511.08220.94531.05360.98920.99771.00611.03580.9948
TATA -0.0243-0.0361-0.1433-0.1215-0.0931-0.0254-0.0488-0.0457-0.0675-0.0489
M-score -2.72-2.613.56-3.38-3.48-1.44-2.61-2.73-2.08-2.81

Dillard's Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 1.00620.98680.69630.74331.33111.80852.94912.46611.10810.8373
GMI 0.98831.00621.01511.01821.01290.99730.99871.00591.01131.0392
AQI 0.98030.950.98140.99041.00070.95650.96311.01640.99731.0978
SGI 1.02470.99150.99050.99120.9871.01321.0171.02331.02060.9962
DEPI 0.9270.95420.97590.98951.00050.97260.97140.96950.94930.9615
SGAI 0.98740.98050.9870.990.99991.0061.00581.00020.99861.0072
LVGI 1.10581.00610.99270.97620.98251.03581.01471.06311.05240.9948
TATA -0.019-0.0483-0.049-0.0465-0.0518-0.0675-0.0476-0.054-0.0398-0.0489
M-score -2.60-2.75-2.99-2.93-2.42-2.08-0.92-1.38-2.57-2.81
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