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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: -4.77   Max: -0.35
Current: -2.48

-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 * 1.3355+0.528 * 0.852+0.404 * 0.994+0.892 * 0.8397+0.115 * 0.9838
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.086+4.679 * -0.014-0.327 * 1.0096
=-2.48

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
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.
Net Income was 20.824 + 18.131 + 18.73 + 16.937 = $74.6 Mil.
Non Operating Income was -1.133 + -1.167 + 0.464 + -0.08 = $-1.9 Mil.
Cash Flow from Operations was 52.84 + 25.001 + 47.385 + -15.797 = $109.4 Mil.
Accounts Receivable was $81.6 Mil.
Revenue was 163.169 + 158.637 + 216.318 + 229.391 = $767.5 Mil.
Gross Profit was 94.424 + 88.738 + 96.377 + 98.254 = $377.8 Mil.
Total Current Assets was $268.5 Mil.
Total Assets was $2,377.7 Mil.
Property, Plant and Equipment(Net PPE) was $289.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $37.9 Mil.
Selling, General & Admin. Expense(SGA) was $157.6 Mil.
Total Current Liabilities was $226.3 Mil.
Long-Term Debt was $1,377.9 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)
=(91.493 / 644.499) / (81.587 / 767.515)
=0.14195988 / 0.1063002
=1.3355

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)
=(91.199 / 767.515) / (97.072 / 644.499)
=0.49222882 / 0.57772006
=0.852

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 - (298.863 + 264.855) / 2355.247) / (1 - (268.477 + 289.723) / 2377.66)
=0.7606544 / 0.76523136
=0.994

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
=644.499 / 767.515
=0.8397

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))
=(37.911 / (37.911 + 289.723)) / (35.302 / (35.302 + 264.855))
=0.11571143 / 0.11761178
=0.9838

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)
=(143.739 / 644.499) / (157.615 / 767.515)
=0.2230244 / 0.20535755
=1.086

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)
=((1358.628 + 245.774) / 2355.247) / ((1377.914 + 226.349) / 2377.66)
=0.68120329 / 0.67472347
=1.0096

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
=(74.622 - -1.916 - 109.429) / 2355.247
=-0.014

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.06271.0151.03851.82580.3071.01311.00031.45251.40661.4873
GMI 2.7440.93650.96411.091.37740.84930.98220.85010.82210.7989
AQI 0.99151.05020.9981.19011.07921.01021.03161.07531.06110.9892
SGI 0.88690.96941.00441.38623.33010.87630.94320.80620.79050.7536
DEPI 1.03210.90960.98042.23760.33431.04010.85680.95220.80881.0371
SGAI 0.20181.01281.07590.92640.67070.99241.07271.20551.32511.1674
LVGI 1.01291.03780.94621.71630.93071.11221.04910.9430.90621.0058
TATA -0.0204-0.0073-0.0203-0.0279-0.0789-0.0573-0.031-0.0285-0.0075-0.022
M-score -1.56-2.57-2.55-1.46-1.17-2.95-2.72-2.44-2.44-2.49

DineEquity Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.45251.36531.3291.25461.40661.34361.70551.68221.48731.3355
GMI 0.85010.83940.84550.84880.82210.80710.77210.74680.79890.852
AQI 1.07531.03541.04051.07671.06111.04451.05491.01540.98920.994
SGI 0.80620.80.81530.82390.79050.7520.70930.68690.75360.8397
DEPI 0.95221.0041.01420.83140.80880.80340.82870.98011.03710.9838
SGAI 1.20551.24651.20281.27331.32511.33081.40761.24861.16741.086
LVGI 0.9431.05311.05180.99750.90620.92330.93470.98391.00581.0096
TATA -0.0376-0.0371-0.0272-0.0326-0.0078-0.0179-0.0153-0.0097-0.0221-0.014
M-score -2.48-2.63-2.58-2.67-2.45-2.61-2.33-2.34-2.49-2.48
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