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DineEquity Inc (NYSE:DIN)
Beneish M-Score
-2.66 (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.

DineEquity Inc has a M-score of -2.66 suggests that the company is not a manipulator.

DIN' s 10-Year Beneish M-Score Range
Min: -4.77   Max: -0.35
Current: -2.66

-4.77
-0.35

During the past 13 years, the highest Beneish M-Score of DineEquity Inc was -0.35. The lowest was -4.77. And the median was -2.56.


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 DineEquity 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 * 1.0418+0.528 * 0.9162+0.404 * 0.9928+0.892 * 0.9291+0.115 * 0.9479
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9859+4.679 * -0.0212-0.327 * 1.009
=-2.66

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $91.2 Mil.
Revenue was 160.521 + 167.201 + 157.901 + 161.283 = $646.9 Mil.
Gross Profit was 94.473 + 97.072 + 91.199 + 93.043 = $375.8 Mil.
Total Current Assets was $273.2 Mil.
Total Assets was $2,319.1 Mil.
Property, Plant and Equipment(Net PPE) was $261.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.2 Mil.
Selling, General & Admin. Expense(SGA) was $142.9 Mil.
Total Current Liabilities was $224.8 Mil.
Long-Term Debt was $1,355.0 Mil.
Net Income was 19.167 + 20.824 + 18.131 + 18.73 = $76.9 Mil.
Non Operating Income was -0.513 + -1.133 + -1.167 + 0.464 = $-2.3 Mil.
Cash Flow from Operations was 3.152 + 52.84 + 25.001 + 47.385 = $128.4 Mil.
Accounts Receivable was $94.2 Mil.
Revenue was 158.114 + 163.169 + 158.637 + 216.318 = $696.2 Mil.
Gross Profit was 91.026 + 94.424 + 88.738 + 96.377 = $370.6 Mil.
Total Current Assets was $240.2 Mil.
Total Assets was $2,337.4 Mil.
Property, Plant and Equipment(Net PPE) was $285.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $36.2 Mil.
Selling, General & Admin. Expense(SGA) was $156.0 Mil.
Total Current Liabilities was $203.6 Mil.
Long-Term Debt was $1,374.6 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)
=(91.187 / 646.906) / (94.2 / 696.238)
=0.14095866 / 0.13529856
=1.0418

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)
=(97.072 / 696.238) / (94.473 / 646.906)
=0.53223898 / 0.58089893
=0.9162

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 - (273.193 + 261.201) / 2319.089) / (1 - (240.196 + 285.379) / 2337.442)
=0.76956727 / 0.7751495
=0.9928

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
=646.906 / 696.238
=0.9291

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))
=(36.218 / (36.218 + 285.379)) / (35.217 / (35.217 + 261.201))
=0.11261921 / 0.11880857
=0.9479

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)
=(142.914 / 646.906) / (156.017 / 696.238)
=0.22091927 / 0.22408573
=0.9859

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)
=((1355.022 + 224.776) / 2319.089) / ((1374.558 + 203.595) / 2337.442)
=0.68121491 / 0.67516242
=1.009

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
=(76.852 - -2.349 - 128.378) / 2319.089
=-0.0212

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.

DineEquity Inc has a M-score of -2.66 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.

DineEquity Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.06271.0151.03851.82580.3071.01311.00031.45251.40661.4873
GMI 2.7440.93650.96411.091.37740.84930.98220.85010.82210.7989
AQI 0.99151.05020.9981.19011.07921.01021.03161.07531.06110.9892
SGI 0.88690.96941.00441.38623.33010.87630.94320.80620.79050.7536
DEPI 1.03210.90960.98042.23760.33431.04010.85680.95220.80881.0371
SGAI 0.20181.01281.07590.92640.67070.99241.07271.20551.32511.1674
LVGI 1.01291.03780.94621.71630.93071.11221.04910.9430.90621.0058
TATA -0.0204-0.0073-0.0203-0.0279-0.0789-0.0573-0.031-0.0285-0.0075-0.022
M-score -1.56-2.57-2.55-1.46-1.17-2.95-2.72-2.44-2.44-2.49

DineEquity Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.36531.3291.25461.40661.34361.70551.68221.48731.33551.0418
GMI 0.83940.84550.84880.82210.80710.77210.74680.79890.8520.9162
AQI 1.03541.04051.07671.06111.04451.05491.01540.98920.9940.9928
SGI 0.80.81530.82390.79050.7520.70930.68690.75360.83970.9291
DEPI 1.0041.01420.83140.80880.80340.82870.98011.03710.98380.9479
SGAI 1.24651.20281.27331.32511.33081.40761.24861.16741.0860.9859
LVGI 1.05311.05180.99750.90620.92330.93470.98391.00581.00961.009
TATA -0.0371-0.0272-0.0326-0.0078-0.0179-0.0152-0.0096-0.022-0.0138-0.0212
M-score -2.63-2.58-2.67-2.45-2.61-2.33-2.34-2.49-2.48-2.66
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