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Dillards Inc (NYSE:DDS)
Beneish M-Score
-2.99 (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 -2.99 suggests that the company is not a manipulator.

DDS' s 10-Year Beneish M-Score Range
Min: -3.83   Max: 11.59
Current: -2.99

-3.83
11.59

During the past 13 years, the highest Beneish M-Score of Dillards Inc was 11.59. 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 * 0.6963+0.528 * 1.0151+0.404 * 0.9814+0.892 * 0.9905+0.115 * 0.9759
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.987+4.679 * -0.049-0.327 * 0.9927
=-2.99

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $19 Mil.
Revenue was 1588.541 + 2078.675 + 1506.925 + 1516.796 = $6,691 Mil.
Gross Profit was 649.317 + 706.974 + 569.518 + 539.974 = $2,466 Mil.
Total Current Assets was $1,943 Mil.
Total Assets was $4,294 Mil.
Property, Plant and Equipment(Net PPE) was $2,096 Mil.
Depreciation, Depletion and Amortization(DDA) was $254 Mil.
Selling, General & Admin. Expense(SGA) was $1,663 Mil.
Total Current Liabilities was $991 Mil.
Long-Term Debt was $821 Mil.
Net Income was 111.683 + 119.102 + 50.868 + 36.491 = $318 Mil.
Non Operating Income was 0.389 + 1.182 + 0.002 + 0.024 = $2 Mil.
Cash Flow from Operations was 161.859 + 328.755 + 41.282 + -5.158 = $527 Mil.
Accounts Receivable was $28 Mil.
Revenue was 1589.381 + 2154.056 + 1486.345 + 1525.182 = $6,755 Mil.
Gross Profit was 651.596 + 771.286 + 566.722 + 537.38 = $2,527 Mil.
Total Current Assets was $1,775 Mil.
Total Assets was $4,261 Mil.
Property, Plant and Equipment(Net PPE) was $2,228 Mil.
Depreciation, Depletion and Amortization(DDA) was $263 Mil.
Selling, General & Admin. Expense(SGA) was $1,701 Mil.
Total Current Liabilities was $990 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)
=(19.178 / 6690.937) / (27.806 / 6754.964)
=0.00286627 / 0.00411638
=0.6963

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)
=(706.974 / 6754.964) / (649.317 / 6690.937)
=0.37409289 / 0.36852581
=1.0151

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 - (1942.727 + 2096.01) / 4293.622) / (1 - (1775.313 + 2228.095) / 4261.16)
=0.05936363 / 0.06048869
=0.9814

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
=6690.937 / 6754.964
=0.9905

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))
=(262.692 / (262.692 + 2228.095)) / (253.973 / (253.973 + 2096.01))
=0.10546546 / 0.1080744
=0.9759

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)
=(1662.568 / 6690.937) / (1700.628 / 6754.964)
=0.24848059 / 0.25175974
=0.987

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)
=((821.341 + 990.998) / 4293.622) / ((822.125 + 989.713) / 4261.16)
=0.42210027 / 0.4251983
=0.9927

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
=(318.144 - 1.597 - 526.738) / 4293.622
=-0.049

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 -2.99 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

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
DSRI 1.08111.38511.65231.46391.04140.86750.76131.0070.98720.6963
GMI 0.98831.00060.99860.99860.99270.98310.98360.98751.00581.0151
AQI 3.62943.65434.30661.03171.04650.98360.9940.98030.950.9814
SGI 1.02331.03461.03331.03691.05421.04061.03151.02390.99110.9905
DEPI 0.95860.96540.96690.96050.93640.92110.91860.9270.95420.9759
SGAI 0.97850.97170.97010.96130.9640.97290.97980.98820.98090.987
LVGI 0.98920.93430.96290.9460.99771.04080.98931.10581.00610.9927
TATA -0.0196-0.0233-0.0189-0.0697-0.0486-0.0513-0.0374-0.0279-0.0457-0.049
M-score -1.42-1.11-0.59-2.31-2.61-2.84-2.86-2.64-2.73-2.99
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