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Dillards Inc (NYSE:DDS)
Beneish M-Score
-2.42 (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 -2.42 suggests that the company is not a manipulator.

DDS' s 10-Year Beneish M-Score Range
Min: -3.83   Max: 4.27
Current: -2.42

-3.83
4.27

During the past 13 years, the highest Beneish M-Score of Dillards Inc was 4.27. The lowest was -3.83. 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 * 1.3311+0.528 * 1.0129+0.404 * 1.0007+0.892 * 0.987+0.115 * 1.0005
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9999+4.679 * -0.0518-0.327 * 0.9825
=-2.42

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
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.
Net Income was 55.231 + 34.449 + 111.683 + 119.102 = $320 Mil.
Non Operating Income was 5.923 + 0.05 + 0.389 + 1.182 = $8 Mil.
Cash Flow from Operations was 76.066 + -28.023 + 161.859 + 328.755 = $539 Mil.
Accounts Receivable was $32 Mil.
Revenue was 1506.925 + 1516.796 + 1589.381 + 2154.056 = $6,767 Mil.
Gross Profit was 569.518 + 539.974 + 651.596 + 771.286 = $2,532 Mil.
Total Current Assets was $2,038 Mil.
Total Assets was $4,460 Mil.
Property, Plant and Equipment(Net PPE) was $2,165 Mil.
Depreciation, Depletion and Amortization(DDA) was $262 Mil.
Selling, General & Admin. Expense(SGA) was $1,695 Mil.
Total Current Liabilities was $1,298 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)
=(41.661 / 6679.248) / (31.71 / 6767.158)
=0.00623738 / 0.00468587
=1.3311

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)
=(536.619 / 6767.158) / (574.701 / 6679.248)
=0.37421529 / 0.36944443
=1.0129

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 - (2040.709 + 2064.303) / 4357.068) / (1 - (2037.544 + 2164.545) / 4459.915)
=0.05784991 / 0.05780962
=1.0007

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
=6679.248 / 6767.158
=0.987

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))
=(261.747 / (261.747 + 2164.545)) / (249.48 / (249.48 + 2064.303))
=0.10787943 / 0.10782342
=1.0005

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)
=(1672.824 / 6679.248) / (1695.04 / 6767.158)
=0.25045095 / 0.25048033
=0.9999

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)
=((820.921 + 1214.128) / 4357.068) / ((821.742 + 1298.445) / 4459.915)
=0.46706845 / 0.47538731
=0.9825

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
=(320.465 - 7.544 - 538.657) / 4357.068
=-0.0518

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 -2.42 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 0.00791.31610.82671.09718.53060.80630.40841.08091.04160.9872
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 -3.60-2.35-2.73-2.613.65-3.31-3.41-1.42-2.61-2.73

Dillards Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 1.65231.46391.04140.86750.76131.0070.98720.69630.74331.3311
GMI 0.99860.99860.99270.98310.98360.98751.00581.01511.01821.0129
AQI 4.30661.03171.04650.98360.9940.98030.950.98140.99041.0007
SGI 1.03331.03691.05421.04061.03151.02390.99110.99050.99120.987
DEPI 0.96690.96050.93640.92110.91860.9270.95420.97590.98951.0005
SGAI 0.97010.96130.9640.97290.97980.98820.98090.9870.990.9999
LVGI 0.96290.9460.99771.04080.98931.10581.00610.99270.97620.9825
TATA -0.0189-0.0697-0.0486-0.0513-0.0374-0.0279-0.0457-0.049-0.0465-0.0518
M-score -0.59-2.31-2.61-2.84-2.86-2.64-2.73-2.99-2.93-2.42
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