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DineEquity Inc (NYSE:DIN)
Beneish M-Score
-2.31 (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 -2.30 suggests that the company is not a manipulator.

DIN' s 10-Year Beneish M-Score Range
Min: -4.77   Max: -0.35
Current: -2.31

-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 -2.53.


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 * 1.1337+0.528 * 1.0295+0.404 * 0.9802+0.892 * 1.0429+0.115 * 0.9484
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9777+4.679 * 0.0046-0.327 * 1.0403
=-2.30

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 26.897 + 28.412 + -22.425 + 18.887 = $51.8 Mil.
Non Operating Income was -0.541 + -1.818 + -67.275 + 0.012 = $-69.6 Mil.
Cash Flow from Operations was 6.993 + 41.13 + 16.097 + 46.435 = $110.7 Mil.
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.



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)
=(107.807 / 674.629) / (91.187 / 646.906)
=0.15980191 / 0.14095866
=1.1337

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)
=(100.286 / 646.906) / (96.807 / 674.629)
=0.58089893 / 0.56425532
=1.0295

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 - (347.582 + 231.124) / 2355.858) / (1 - (273.193 + 261.201) / 2319.089)
=0.75435446 / 0.76956727
=0.9802

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
=674.629 / 646.906
=1.0429

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))
=(35.217 / (35.217 + 261.201)) / (33.102 / (33.102 + 231.124))
=0.11880857 / 0.12527912
=0.9484

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)
=(145.716 / 674.629) / (142.914 / 646.906)
=0.21599427 / 0.22091927
=0.9777

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)
=((1433.966 + 235.622) / 2355.858) / ((1355.022 + 224.776) / 2319.089)
=0.70869636 / 0.68121491
=1.0403

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
=(51.771 - -69.622 - 110.655) / 2355.858
=0.0046

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 -2.30 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.34361.70551.68221.48731.33551.04181.03431.04130.99291.1337
GMI 0.80710.77210.74680.79890.8520.91620.9921.00791.01331.0295
AQI 1.04451.05491.01540.98920.9940.99280.98930.97960.98730.9802
SGI 0.7520.70930.68690.75360.83970.92911.01131.02271.02961.0429
DEPI 0.80340.82870.98011.03710.98380.94790.91420.90690.93710.9484
SGAI 1.36651.44571.28021.16741.0860.98590.98050.99370.98620.9777
LVGI 0.92330.93470.98391.00581.00961.0091.00831.0451.03721.0403
TATA -0.0315-0.0285-0.0835-0.0225-0.014-0.0212-0.0203-0.00540.00290.0046
M-score -2.68-2.40-2.70-2.49-2.48-2.66-2.55-2.48-2.46-2.30
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