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DineEquity Inc (NYSE:DIN)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

DIN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07   Max: -1.45
Current: -2.62

-4.07
-1.45

During the past 13 years, the highest Beneish M-Score of DineEquity Inc was -1.45. The lowest was -4.07. And the median was -2.50.


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 * 0.8721+0.528 * 0.9776+0.404 * 1.0086+0.892 * 1.0399+0.115 * 0.9677
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0244+4.679 * -0.0077-0.327 * 1.0116
=-2.62

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $139.2 Mil.
Revenue was 171.3 + 162.437 + 171.549 + 175.814 = $681.1 Mil.
Gross Profit was 105.228 + 96.685 + 96.807 + 100.286 = $399.0 Mil.
Total Current Assets was $372.7 Mil.
Total Assets was $2,331.9 Mil.
Property, Plant and Equipment(Net PPE) was $219.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.8 Mil.
Selling, General & Admin. Expense(SGA) was $155.4 Mil.
Total Current Liabilities was $298.4 Mil.
Long-Term Debt was $1,406.6 Mil.
Net Income was 25.357 + 24.257 + 26.897 + 28.412 = $104.9 Mil.
Non Operating Income was -4.312 + -0.605 + -3.19 + -4.412 = $-12.5 Mil.
Cash Flow from Operations was 64.92 + 22.466 + 6.993 + 41.13 = $135.5 Mil.
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 $382.0 Mil.
Total Assets was $2,393.7 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 $1,417.1 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)
=(139.206 / 681.1) / (153.498 / 654.988)
=0.20438408 / 0.23435239
=0.8721

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)
=(96.685 / 654.988) / (105.228 / 681.1)
=0.57270515 / 0.58582587
=0.9776

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 - (372.709 + 219.58) / 2331.85) / (1 - (382.024 + 241.229) / 2393.736)
=0.74600039 / 0.73963169
=1.0086

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
=681.1 / 654.988
=1.0399

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))
=(34.745 / (34.745 + 241.229)) / (32.84 / (32.84 + 219.58))
=0.12589954 / 0.13010063
=0.9677

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)
=(155.428 / 681.1) / (145.91 / 654.988)
=0.22820144 / 0.22276744
=1.0244

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)
=((1406.649 + 298.429) / 2331.85) / ((1417.131 + 313.049) / 2393.736)
=0.73121256 / 0.72279483
=1.0116

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
=(104.923 - -12.519 - 135.509) / 2331.85
=-0.0077

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 -2.62 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 1.03851.82580.3071.01311.00031.45251.40661.48731.04130.8721
GMI 0.96411.091.37740.84930.98220.85010.82210.79891.00790.9776
AQI 0.9981.19011.07921.01021.03161.07531.06110.98920.98881.0086
SGI 1.00441.38623.33010.87630.94320.80620.79050.75361.02271.0399
DEPI 0.98042.23760.33431.04010.85680.95220.80881.03710.90690.9677
SGAI 1.07590.92640.67070.99241.07271.20551.32511.16740.99371.0244
LVGI 0.94621.71630.93071.11221.04910.9430.90621.00581.05441.0116
TATA -0.0203-0.0354-0.1394-0.1175-0.0253-0.0096-0.0015-0.01650.0001-0.0077
M-score -2.55-1.50-1.46-3.23-2.69-2.35-2.42-2.47-2.45-2.62

DineEquity Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.68221.48731.33551.04181.03431.04130.99291.13370.95960.8721
GMI 0.74680.79890.8520.91620.9921.00791.01331.02951.00910.9776
AQI 1.01540.98920.9940.99280.98930.98880.98730.98021.00281.0086
SGI 0.68690.75360.83970.92911.01131.02271.02961.04291.03971.0399
DEPI 0.98011.03710.98380.94790.91420.90690.93710.94840.96670.9677
SGAI 1.24861.16741.0860.98590.98050.99370.98620.97771.04371.0244
LVGI 0.98391.00581.00961.0091.00831.05441.03721.04031.03661.0116
TATA -0.0039-0.0165-0.0079-0.0151-0.01450.00010.00770.00910.021-0.0077
M-score -2.32-2.47-2.45-2.63-2.52-2.45-2.44-2.28-2.40-2.62
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