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Dillards Inc (NYSE:DDS)
Beneish M-Score
-2.08 (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 -2.08 signals that the company is a manipulator.

DDS' s 10-Year Beneish M-Score Range
Min: -3.61   Max: 3.73
Current: -2.08

-3.61
3.73

During the past 13 years, the highest Beneish M-Score of Dillards Inc was 3.73. The lowest was -3.61. 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 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 * 1.8085+0.528 * 0.9973+0.404 * 0.9565+0.892 * 1.0132+0.115 * 0.9726
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.006+4.679 * -0.0675-0.327 * 1.0358
=-2.08

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
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 $885 Mil.
Long-Term Debt was $821 Mil.
Net Income was 130.49 + 55.231 + 34.449 + 111.683 = $332 Mil.
Non Operating Income was -4.45 + 5.923 + 0.05 + 0.389 = $2 Mil.
Cash Flow from Operations was 401.687 + 76.066 + -28.023 + 161.859 = $612 Mil.
Accounts Receivable was $31 Mil.
Revenue was 2078.675 + 1506.925 + 1516.796 + 1589.381 = $6,692 Mil.
Gross Profit was 706.974 + 569.518 + 539.974 + 651.596 = $2,468 Mil.
Total Current Assets was $1,660 Mil.
Total Assets was $4,051 Mil.
Property, Plant and Equipment(Net PPE) was $2,134 Mil.
Depreciation, Depletion and Amortization(DDA) was $257 Mil.
Selling, General & Admin. Expense(SGA) was $1,659 Mil.
Total Current Liabilities was $778 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)
=(56.51 / 6780.129) / (30.84 / 6691.777)
=0.00833465 / 0.00460864
=1.8085

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)
=(574.701 / 6691.777) / (746.887 / 6780.129)
=0.36882012 / 0.36983426
=0.9973

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 - (1888.442 + 2029.171) / 4170.071) / (1 - (1660.156 + 2134.2) / 4050.739)
=0.06054046 / 0.0632929
=0.9565

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
=6780.129 / 6691.777
=1.0132

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))
=(257.237 / (257.237 + 2134.2)) / (252.334 / (252.334 + 2029.171))
=0.10756587 / 0.1105998
=0.9726

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)
=(1690.836 / 6780.129) / (1658.869 / 6691.777)
=0.2493811 / 0.24789663
=1.006

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)
=((820.704 + 885.323) / 4170.071) / ((821.544 + 778.311) / 4050.739)
=0.40911222 / 0.39495386
=1.0358

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
=(331.853 - 1.912 - 611.589) / 4170.071
=-0.0675

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 -2.08 signals that the company is likely to 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1.31610.82671.09718.53060.80630.40841.08091.04160.98721.8085
GMI 1.0250.97951.01441.1340.90650.93720.98850.99251.00580.9973
AQI 0.98520.99631.01210.47740.91071.06373.62941.04650.950.9565
SGI 0.98591.0150.94380.94810.8911.00511.02351.0540.99111.0132
DEPI 0.99720.99981.02010.98141.010.94360.95860.93640.95420.9726
SGAI 0.98391.01471.04670.98970.95810.980.97830.96420.98091.006
LVGI 0.96680.89621.01511.08220.94531.05360.98920.99771.00611.0358
TATA -0.0361-0.0266-0.0373-0.1245-0.1054-0.077-0.0196-0.0488-0.0444-0.0675
M-score -2.35-2.73-2.613.65-3.31-3.41-1.42-2.61-2.73-2.08

Dillards Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 1.46391.04140.86750.76131.0070.98720.69630.74331.33111.8085
GMI 0.99860.99270.98310.98360.98751.00581.01511.01821.01290.9973
AQI 1.03171.04650.98360.9940.98030.950.98140.99041.00070.9565
SGI 1.03691.05421.04061.03151.02390.99110.99050.99120.9871.0132
DEPI 0.96050.93640.92110.91860.9270.95420.97590.98951.00050.9726
SGAI 0.96130.9640.97290.97980.98820.98090.9870.990.99991.006
LVGI 0.9460.99771.04080.98931.10581.00610.99270.97620.98251.0358
TATA -0.0697-0.0486-0.0513-0.0374-0.0279-0.0444-0.0477-0.0452-0.0506-0.0675
M-score -2.31-2.61-2.84-2.86-2.64-2.73-2.99-2.92-2.41-2.08
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