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DineEquity Inc (NYSE:DIN)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

DIN' s 10-Year Beneish M-Score Range
Min: -4.77   Max: -0.35
Current: -2.46

-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 -2.55.


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 * 0.9929+0.528 * 1.0133+0.404 * 0.9873+0.892 * 1.0296+0.115 * 0.9371
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9862+4.679 * 0.0029-0.327 * 1.0372
=-2.46

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 28.412 + -22.425 + 18.887 + 19.167 = $44.0 Mil.
Non Operating Income was -1.818 + -67.275 + 0.012 + -0.513 = $-69.6 Mil.
Cash Flow from Operations was 41.13 + 16.097 + 46.435 + 3.152 = $106.8 Mil.
Accounts Receivable was $91.5 Mil.
Revenue was 167.201 + 157.901 + 161.283 + 158.114 = $644.5 Mil.
Gross Profit was 97.072 + 91.199 + 93.043 + 91.026 = $372.3 Mil.
Total Current Assets was $298.9 Mil.
Total Assets was $2,355.2 Mil.
Property, Plant and Equipment(Net PPE) was $264.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.3 Mil.
Selling, General & Admin. Expense(SGA) was $143.7 Mil.
Total Current Liabilities was $245.8 Mil.
Long-Term Debt was $1,358.6 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)
=(93.532 / 663.601) / (91.493 / 644.499)
=0.14094614 / 0.14195988
=0.9929

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)
=(91.941 / 644.499) / (100.286 / 663.601)
=0.57772006 / 0.57011517
=1.0133

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 - (356.559 + 235.355) / 2377.314) / (1 - (298.863 + 264.855) / 2355.247)
=0.75101564 / 0.7606544
=0.9873

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
=663.601 / 644.499
=1.0296

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))
=(35.302 / (35.302 + 264.855)) / (33.777 / (33.777 + 235.355))
=0.11761178 / 0.12550347
=0.9371

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)
=(145.955 / 663.601) / (143.739 / 644.499)
=0.21994391 / 0.2230244
=0.9862

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)
=((1437.077 + 242.544) / 2377.314) / ((1358.628 + 245.774) / 2355.247)
=0.70652047 / 0.68120329
=1.0372

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
=(44.041 - -69.594 - 106.814) / 2377.314
=0.0029

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 -2.46 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 1.0151.03851.82580.3071.01311.00031.45251.40661.48731.0413
GMI 0.93650.96411.091.37740.84930.98220.85010.82210.79891.0079
AQI 1.05020.9981.19011.07921.01021.03161.07531.06110.98920.9796
SGI 0.96941.00441.38623.33010.87630.94320.80620.79050.75361.0227
DEPI 0.90960.98042.23760.33431.04010.85680.95220.80881.03710.9069
SGAI 1.01281.07590.92640.67070.99241.07271.20551.32511.16740.9937
LVGI 1.03780.94621.71630.93071.11221.04910.9430.90621.00581.045
TATA -0.0073-0.0203-0.0279-0.0789-0.0573-0.031-0.0285-0.0075-0.022-0.0054
M-score -2.57-2.55-1.46-1.17-2.95-2.72-2.44-2.44-2.49-2.48

DineEquity Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.40661.34361.70551.68221.48731.33551.04181.03431.04130.9929
GMI 0.82210.80710.77210.74680.79890.8520.91620.9921.00791.0133
AQI 1.06111.04451.05491.01540.98920.9940.99280.98930.97960.9873
SGI 0.79050.7520.70930.68690.75360.83970.92911.01131.02271.0296
DEPI 0.80880.80340.82870.98011.03710.98380.94790.91420.90690.9371
SGAI 1.32511.33081.40761.24861.16741.0860.98590.98050.99370.9862
LVGI 0.90620.92330.93470.98391.00581.00961.0091.00831.0451.0372
TATA -0.0078-0.0179-0.0152-0.0096-0.022-0.0138-0.0212-0.0203-0.00540.0029
M-score -2.45-2.61-2.33-2.34-2.49-2.48-2.66-2.55-2.48-2.46
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