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DineEquity Inc (NYSE:DIN)
Beneish M-Score
-2.42 (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 -2.42 suggests that the company is not a manipulator.

DIN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.77   Max: -0.35
Current: -2.42

-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 -2.54.


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 * 0.9596+0.528 * 1.0091+0.404 * 1.0028+0.892 * 1.0397+0.115 * 0.9667
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0437+4.679 * 0.0162-0.327 * 1.0366
=-2.42

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $91.1 Mil.
Revenue was 162.437 + 171.549 + 175.814 + 164.413 = $674.2 Mil.
Gross Profit was 96.685 + 96.807 + 100.286 + 91.941 = $385.7 Mil.
Total Current Assets was $324.2 Mil.
Total Assets was $2,318.3 Mil.
Property, Plant and Equipment(Net PPE) was $226.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.6 Mil.
Selling, General & Admin. Expense(SGA) was $153.5 Mil.
Total Current Liabilities was $209.9 Mil.
Long-Term Debt was $1,430.8 Mil.
Net Income was 24.257 + 26.897 + 28.412 + -22.425 = $57.1 Mil.
Non Operating Income was 2.423 + -0.541 + -1.818 + -67.275 = $-67.2 Mil.
Cash Flow from Operations was 22.466 + 6.993 + 41.13 + 16.097 = $86.7 Mil.
Accounts Receivable was $91.3 Mil.
Revenue was 162.853 + 160.521 + 167.201 + 157.901 = $648.5 Mil.
Gross Profit was 91.629 + 94.473 + 97.072 + 91.199 = $374.4 Mil.
Total Current Assets was $308.6 Mil.
Total Assets was $2,342.8 Mil.
Property, Plant and Equipment(Net PPE) was $252.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.1 Mil.
Selling, General & Admin. Expense(SGA) was $141.4 Mil.
Total Current Liabilities was $252.3 Mil.
Long-Term Debt was $1,347.2 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)
=(91.085 / 674.213) / (91.292 / 648.476)
=0.13509826 / 0.1407793
=0.9596

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)
=(96.807 / 648.476) / (96.685 / 674.213)
=0.57731204 / 0.57210258
=1.0091

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 - (324.178 + 226.234) / 2318.286) / (1 - (308.581 + 252.673) / 2342.758)
=0.76257804 / 0.76043023
=1.0028

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
=674.213 / 648.476
=1.0397

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))
=(35.076 / (35.076 + 252.673)) / (32.642 / (32.642 + 226.234))
=0.1218979 / 0.12609126
=0.9667

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)
=(153.458 / 674.213) / (141.418 / 648.476)
=0.22761056 / 0.21807746
=1.0437

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)
=((1430.812 + 209.86) / 2318.286) / ((1347.156 + 252.265) / 2342.758)
=0.70770906 / 0.68270859
=1.0366

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
=(57.141 - -67.211 - 86.686) / 2318.286
=0.0162

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 -2.42 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.70551.68221.48731.33551.04181.03431.04130.99291.13370.9596
GMI 0.77210.74680.79890.8520.91620.9921.00791.01331.02951.0091
AQI 1.05491.01540.98920.9940.99280.98930.97960.98730.98021.0028
SGI 0.70930.68690.75360.83970.92911.01131.02271.02961.04291.0397
DEPI 0.82870.98011.03710.98380.94790.91420.90690.93710.94840.9667
SGAI 1.40761.24861.16741.0860.98590.98050.99370.98620.97771.0437
LVGI 0.93470.98391.00581.00961.0091.00831.0451.03721.04031.0366
TATA -0.0152-0.0096-0.022-0.0138-0.0212-0.0203-0.00540.00290.00460.0162
M-score -2.33-2.34-2.49-2.48-2.66-2.55-2.48-2.46-2.30-2.42
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