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DineEquity Inc (NYSE:DIN)
Beneish M-Score
-2.52 (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 -2.52 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: -2.52

-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 -2.56.


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 * 1.0382+0.528 * 0.9577+0.404 * 1.0188+0.892 * 1.0078+0.115 * 0.9377
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0919+4.679 * -0.0081-0.327 * 1.0322
=-2.52

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $97.9 Mil.
Revenue was 163.524 + 171.3 + 162.437 + 171.549 = $668.8 Mil.
Gross Profit was 99.424 + 105.228 + 96.685 + 96.807 = $398.1 Mil.
Total Current Assets was $317.1 Mil.
Total Assets was $2,262.2 Mil.
Property, Plant and Equipment(Net PPE) was $214.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.1 Mil.
Selling, General & Admin. Expense(SGA) was $160.6 Mil.
Total Current Liabilities was $246.0 Mil.
Long-Term Debt was $1,403.8 Mil.
Net Income was 25.543 + 25.357 + 24.257 + 26.897 = $102.1 Mil.
Non Operating Income was -3.378 + -4.312 + -0.605 + -3.19 = $-11.5 Mil.
Cash Flow from Operations was 37.494 + 64.92 + 22.466 + 6.993 = $131.9 Mil.
Accounts Receivable was $93.5 Mil.
Revenue was 175.814 + 164.413 + 162.853 + 160.521 = $663.6 Mil.
Gross Profit was 100.286 + 91.941 + 91.629 + 94.473 = $378.3 Mil.
Total Current Assets was $356.6 Mil.
Total Assets was $2,377.3 Mil.
Property, Plant and Equipment(Net PPE) was $235.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.8 Mil.
Selling, General & Admin. Expense(SGA) was $146.0 Mil.
Total Current Liabilities was $242.5 Mil.
Long-Term Debt was $1,437.1 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)
=(97.871 / 668.81) / (93.532 / 663.601)
=0.14633603 / 0.14094614
=1.0382

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)
=(105.228 / 663.601) / (99.424 / 668.81)
=0.57011517 / 0.5953021
=0.9577

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 - (317.067 + 214.206) / 2262.192) / (1 - (356.559 + 235.355) / 2377.314)
=0.76515123 / 0.75101564
=1.0188

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
=668.81 / 663.601
=1.0078

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))
=(33.777 / (33.777 + 235.355)) / (33.099 / (33.099 + 214.206))
=0.12550347 / 0.13383878
=0.9377

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)
=(160.622 / 668.81) / (145.955 / 663.601)
=0.24016088 / 0.21994391
=1.0919

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)
=((1403.767 + 246.03) / 2262.192) / ((1437.077 + 242.544) / 2377.314)
=0.72929132 / 0.70652047
=1.0322

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
=(102.054 - -11.485 - 131.873) / 2262.192
=-0.0081

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 -2.52 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 1.03851.82580.3071.01311.00081.45191.40661.48731.04130.8721
GMI 0.96411.08991.37750.84930.97710.85450.82210.79891.00790.9776
AQI 0.9981.19011.07921.01021.03161.07531.06110.98920.97961.018
SGI 1.00441.38623.33010.87630.94280.80650.79050.75361.02271.0399
DEPI 0.98042.23760.22721.53090.85680.95220.80881.03710.90690.9677
SGAI 1.07590.92640.67070.99241.06851.21021.32511.16740.99371.0244
LVGI 0.94621.71630.93070.96631.20770.86490.9881.00581.0451.0208
TATA -0.0203-0.0094-0.1394-0.1009-0.0898-0.0793-0.0032-0.01650.0001-0.0077
M-score -2.55-1.37-1.47-3.05-3.05-2.65-2.45-2.47-2.45-2.62

DineEquity Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.48731.33551.04181.03431.04130.99291.13370.95960.87211.0382
GMI 0.79890.8520.91620.9921.00791.01331.02951.00910.97760.9577
AQI 0.98920.9940.99280.98930.97960.98730.98021.00281.0181.0188
SGI 0.75360.83970.92911.01131.02271.02961.04291.03971.03991.0078
DEPI 1.03710.98380.94790.91420.90690.93710.94840.96670.96770.9377
SGAI 1.16741.0860.98590.98050.99370.98620.97771.04371.02441.0919
LVGI 1.00581.00961.0091.00831.0451.03721.04031.03661.02081.0322
TATA -0.017-0.0081-0.0151-0.01450.00010.00770.00910.021-0.0077-0.0081
M-score -2.47-2.45-2.63-2.52-2.45-2.44-2.28-2.40-2.62-2.52
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