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DineEquity Inc (NYSE:DIN)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

DIN' s 10-Year Beneish M-Score Range
Min: -3.92   Max: -1.16
Current: -2.48

-3.92
-1.16

During the past 13 years, the highest Beneish M-Score of DineEquity Inc was -1.16. The lowest was -3.92. And the median was -2.51.


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 * 1.0413+0.528 * 1.0079+0.404 * 0.9796+0.892 * 1.0227+0.115 * 0.9069
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9937+4.679 * -0.0054-0.327 * 1.045
=-2.48

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $153.5 Mil.
Revenue was 164.413 + 162.853 + 160.521 + 167.201 = $655.0 Mil.
Gross Profit was 91.941 + 91.629 + 94.473 + 97.072 = $375.1 Mil.
Total Current Assets was $412.9 Mil.
Total Assets was $2,448.1 Mil.
Property, Plant and Equipment(Net PPE) was $241.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.7 Mil.
Selling, General & Admin. Expense(SGA) was $145.9 Mil.
Total Current Liabilities was $313.0 Mil.
Long-Term Debt was $1,440.6 Mil.
Net Income was -22.425 + 18.887 + 19.167 + 20.824 = $36.5 Mil.
Non Operating Income was -67.275 + 0.012 + -0.513 + -1.133 = $-68.9 Mil.
Cash Flow from Operations was 16.097 + 46.435 + 3.152 + 52.84 = $118.5 Mil.
Accounts Receivable was $144.1 Mil.
Revenue was 157.901 + 161.283 + 158.114 + 163.169 = $640.5 Mil.
Gross Profit was 91.199 + 93.043 + 91.026 + 94.424 = $369.7 Mil.
Total Current Assets was $331.6 Mil.
Total Assets was $2,404.6 Mil.
Property, Plant and Equipment(Net PPE) was $274.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.4 Mil.
Selling, General & Admin. Expense(SGA) was $143.6 Mil.
Total Current Liabilities was $284.3 Mil.
Long-Term Debt was $1,364.1 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)
=(153.498 / 654.988) / (144.137 / 640.467)
=0.23435239 / 0.22504985
=1.0413

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)
=(91.629 / 640.467) / (91.941 / 654.988)
=0.57722256 / 0.57270515
=1.0079

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 - (412.884 + 241.229) / 2448.108) / (1 - (331.582 + 274.295) / 2404.642)
=0.73280876 / 0.74803859
=0.9796

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
=654.988 / 640.467
=1.0227

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))
=(35.355 / (35.355 + 274.295)) / (34.745 / (34.745 + 241.229))
=0.1141773 / 0.12589954
=0.9069

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)
=(145.91 / 654.988) / (143.586 / 640.467)
=0.22276744 / 0.22418954
=0.9937

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)
=((1440.643 + 313.049) / 2448.108) / ((1364.067 + 284.273) / 2404.642)
=0.71634585 / 0.6854825
=1.045

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
=(36.453 - -68.909 - 118.524) / 2448.108
=-0.0054

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 -2.48 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.0151.03851.82580.3071.01311.00081.45191.40661.48731.0413
GMI 0.93650.96411.091.37740.84930.97710.85450.82210.79891.0079
AQI 1.05020.9981.19011.07921.01021.03161.07531.06110.98920.9796
SGI 0.96941.00441.38623.33010.87630.94280.80650.79050.75361.0227
DEPI 0.90960.98042.23760.33431.04010.85680.95220.80881.03710.9069
SGAI 1.01281.07590.92640.67070.99241.06851.21021.32511.16740.9937
LVGI 1.03780.94621.71630.93070.96631.20770.86490.9881.00581.045
TATA -0.0073-0.0203-0.0279-0.0789-0.0573-0.0298-0.0071-0.0092-0.022-0.0054
M-score -2.57-2.55-1.46-1.17-2.90-2.77-2.31-2.48-2.49-2.48

DineEquity Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.25441.40661.34361.70551.68221.48731.33551.04181.03431.0413
GMI 0.84990.82210.80710.77210.74680.79890.8520.91620.9921.0079
AQI 1.07671.06111.04451.05491.01540.98920.9940.99280.98930.9796
SGI 0.8240.79050.7520.70930.68690.75360.83970.92911.01131.0227
DEPI 0.83140.80880.80340.82870.98011.03710.98380.94790.91420.9069
SGAI 1.21211.32511.36651.44571.28021.16741.0860.98590.98050.9937
LVGI 0.99750.9880.92330.93470.98391.00581.00961.0091.00831.045
TATA 0.0629-0.0161-0.0315-0.0285-0.0835-0.0225-0.014-0.0212-0.0203-0.0054
M-score -2.21-2.51-2.68-2.40-2.70-2.49-2.48-2.66-2.55-2.48
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