Switch to:
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 Beneish M-Score Range Over the Past 10 Years
Min: -4.77   Max: -0.55
Current: -2.66

-4.77
-0.55

During the past 13 years, the highest Beneish M-Score of DineEquity Inc was -0.55. The lowest was -4.77. And the median was -2.53.


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 * 0.962+0.528 * 0.9305+0.404 * 1.0213+0.892 * 0.9746+0.115 * 0.9312
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1446+4.679 * -0.0113-0.327 * 1.0319
=-2.66

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $101.1 Mil.
Revenue was 160.258 + 163.524 + 171.3 + 162.437 = $657.5 Mil.
Gross Profit was 97.375 + 99.424 + 105.228 + 96.685 = $398.7 Mil.
Total Current Assets was $304.3 Mil.
Total Assets was $2,237.3 Mil.
Property, Plant and Equipment(Net PPE) was $209.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.5 Mil.
Selling, General & Admin. Expense(SGA) was $162.6 Mil.
Total Current Liabilities was $235.7 Mil.
Long-Term Debt was $1,400.5 Mil.
Net Income was 26.829 + 25.543 + 25.357 + 24.257 = $102.0 Mil.
Non Operating Income was -5.682 + -3.378 + -4.312 + -0.605 = $-14.0 Mil.
Cash Flow from Operations was 16.417 + 37.494 + 64.92 + 22.466 = $141.3 Mil.
Accounts Receivable was $107.8 Mil.
Revenue was 171.549 + 175.814 + 164.413 + 162.853 = $674.6 Mil.
Gross Profit was 96.807 + 100.286 + 91.941 + 91.629 = $380.7 Mil.
Total Current Assets was $347.6 Mil.
Total Assets was $2,355.9 Mil.
Property, Plant and Equipment(Net PPE) was $231.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.1 Mil.
Selling, General & Admin. Expense(SGA) was $145.7 Mil.
Total Current Liabilities was $235.6 Mil.
Long-Term Debt was $1,434.0 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)
=(101.081 / 657.519) / (107.807 / 674.629)
=0.15373092 / 0.15980191
=0.962

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)
=(380.663 / 674.629) / (398.712 / 657.519)
=0.56425532 / 0.60638856
=0.9305

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 - (304.297 + 209.323) / 2237.268) / (1 - (347.582 + 231.124) / 2355.858)
=0.77042536 / 0.75435446
=1.0213

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
=657.519 / 674.629
=0.9746

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))
=(33.102 / (33.102 + 231.124)) / (32.539 / (32.539 + 209.323))
=0.12527912 / 0.1345354
=0.9312

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)
=(162.556 / 657.519) / (145.716 / 674.629)
=0.24722632 / 0.21599427
=1.1446

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)
=((1400.505 + 235.675) / 2237.268) / ((1433.966 + 235.622) / 2355.858)
=0.73132946 / 0.70869636
=1.0319

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
=(101.986 - -13.977 - 141.297) / 2237.268
=-0.0113

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.03851.82580.3071.01311.00031.45251.40661.48731.04130.8721
GMI 0.96411.091.37740.84930.98220.85010.82210.79891.00790.9776
AQI 0.9981.19011.07921.01021.03161.07531.06110.98920.98881.0086
SGI 1.00441.38623.33010.87630.94320.80620.79050.75361.02271.0399
DEPI 0.98042.23760.33431.04010.85680.95220.80881.03710.90690.9677
SGAI 1.07590.92640.67070.99241.07271.20551.32511.16740.99371.0244
LVGI 0.94621.71630.93071.11221.04910.9430.90621.00581.05441.0116
TATA -0.0203-0.0354-0.1394-0.1175-0.0253-0.0096-0.0015-0.01650.0001-0.0077
M-score -2.55-1.50-1.46-3.23-2.69-2.35-2.42-2.47-2.45-2.62

DineEquity Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.33551.04181.03431.04130.99291.13370.95960.87211.03820.962
GMI 0.8520.91620.9921.00791.01331.02951.00910.97760.95770.9305
AQI 0.9940.99280.98930.98880.98730.98021.00281.00861.01881.0213
SGI 0.83970.92911.01131.02271.02961.04291.03971.03991.00780.9746
DEPI 0.98380.94790.91420.90690.93710.94840.96670.96770.93770.9312
SGAI 1.0860.98590.98050.99370.98620.97771.04371.02441.09191.1446
LVGI 1.00961.0091.00831.05441.03721.04031.03661.01161.03221.0319
TATA -0.0079-0.0151-0.01450.00010.00770.00910.021-0.0077-0.0081-0.0113
M-score -2.45-2.63-2.52-2.45-2.44-2.28-2.40-2.62-2.52-2.66
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK