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Dillard's Inc (NYSE:DDS)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

DDS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.6   Max: 3.56
Current: -2.83

-3.6
3.56

During the past 13 years, the highest Beneish M-Score of Dillard's Inc was 3.56. The lowest was -3.60. And the median was -2.73.


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 * 0.8366+0.528 * 1.0392+0.404 * 1.0977+0.892 * 0.9962+0.115 * 0.9615
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0072+4.679 * -0.0501-0.327 * 1.0468
=-2.83

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $47 Mil.
Revenue was 2117.4 + 1472.854 + 1550.844 + 1613.418 = $6,755 Mil.
Gross Profit was 660.3 + 559.934 + 530.513 + 652.999 = $2,404 Mil.
Total Current Assets was $1,669 Mil.
Total Assets was $3,866 Mil.
Property, Plant and Equipment(Net PPE) was $1,940 Mil.
Depreciation, Depletion and Amortization(DDA) was $252 Mil.
Selling, General & Admin. Expense(SGA) was $1,697 Mil.
Total Current Liabilities was $751 Mil.
Long-Term Debt was $822 Mil.
Net Income was 84 + 45.744 + 29.95 + 109.571 = $269 Mil.
Non Operating Income was 3.1 + 9.4 + 0.052 + 0.043 = $13 Mil.
Cash Flow from Operations was 366.9 + 21.317 + -29.299 + 91.273 = $450 Mil.
Accounts Receivable was $57 Mil.
Revenue was 2179.556 + 1499.144 + 1512.888 + 1588.541 = $6,780 Mil.
Gross Profit was 746.887 + 574.701 + 536.619 + 649.317 = $2,508 Mil.
Total Current Assets was $1,888 Mil.
Total Assets was $4,170 Mil.
Property, Plant and Equipment(Net PPE) was $2,029 Mil.
Depreciation, Depletion and Amortization(DDA) was $252 Mil.
Selling, General & Admin. Expense(SGA) was $1,691 Mil.
Total Current Liabilities was $801 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)
=(47.1 / 6754.516) / (56.51 / 6780.129)
=0.00697311 / 0.00833465
=0.8366

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)
=(559.934 / 6780.129) / (660.3 / 6754.516)
=0.36983426 / 0.35587243
=1.0392

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 - (1668.9 + 1939.8) / 3865.6) / (1 - (1888.442 + 2029.171) / 4170.071)
=0.06645799 / 0.06054046
=1.0977

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
=6754.516 / 6780.129
=0.9962

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))
=(252.334 / (252.334 + 2029.171)) / (252.147 / (252.147 + 1939.8))
=0.1105998 / 0.11503335
=0.9615

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)
=(1696.633 / 6754.516) / (1690.836 / 6780.129)
=0.25118498 / 0.2493811
=1.0072

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)
=((822.1 + 751.2) / 3865.6) / ((820.704 + 800.644) / 4170.071)
=0.40700021 / 0.38880585
=1.0468

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
=(269.265 - 12.595 - 450.191) / 3865.6
=-0.0501

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 -2.83 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 0.82811.09718.53060.80630.40871.0811.04070.98721.80850.8366
GMI 0.98271.01441.1340.90650.93650.98830.99341.00580.99731.0393
AQI 0.99631.01210.47740.91071.06373.62941.04650.950.95651.0977
SGI 1.01320.94380.94810.8911.00431.02341.0550.99111.01320.9962
DEPI 0.99981.02010.98141.010.94360.95860.93640.95420.97260.9616
SGAI 1.01641.04670.98970.95810.98070.97840.96330.98091.0061.0072
LVGI 0.89621.01511.08220.94531.05360.98920.99771.00610.98441.0468
TATA -0.0243-0.0361-0.088-0.1215-0.0931-0.0254-0.0488-0.0457-0.0675-0.05
M-score -2.72-2.613.82-3.38-3.48-1.44-2.61-2.73-2.06-2.83

Dillard's Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 0.98720.69630.74331.33111.80852.94912.46611.10810.83660.7527
GMI 1.00581.01511.01821.01290.99730.99871.00591.01131.03921.0485
AQI 0.950.98140.99041.00070.95650.96311.01640.99731.09771.1018
SGI 0.99110.99050.99120.9871.01321.0171.02331.02060.99620.9816
DEPI 0.95420.97590.98951.00050.97260.97140.96950.94930.96150.9464
SGAI 0.98090.9870.990.99991.0061.00581.00020.99861.00721.0134
LVGI 1.00610.99270.97620.98250.98441.01471.06311.05241.04680.9975
TATA -0.0444-0.0477-0.0452-0.0506-0.0675-0.0476-0.054-0.0398-0.0501-0.0384
M-score -2.73-2.99-2.92-2.41-2.06-0.92-1.38-2.57-2.83-2.84
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