Switch to:
GuruFocus has detected 6 Warning Signs with Dana Inc $DAN.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Dana Inc (NYSE:DAN)
Beneish M-Score
-1.81 (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.

Dana Inc has a M-score of -1.81 signals that the company is a manipulator.

DAN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.06   Max: 3.69
Current: -1.81

-4.06
3.69

During the past 13 years, the highest Beneish M-Score of Dana Inc was 3.69. The lowest was -4.06. And the median was -2.65.


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 Dana 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 * 1.2184+0.528 * 0.9302+0.404 * 1.3489+0.892 * 1.03+0.115 * 1.2166
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0707+4.679 * 0.0701-0.327 * 1.0036
=-1.81

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $1,009 Mil.
Revenue was 1701 + 1447 + 1384 + 1546 = $6,078 Mil.
Gross Profit was 263 + 204 + 208 + 233 = $908 Mil.
Total Current Assets was $2,504 Mil.
Total Assets was $5,290 Mil.
Property, Plant and Equipment(Net PPE) was $1,676 Mil.
Depreciation, Depletion and Amortization(DDA) was $191 Mil.
Selling, General & Admin. Expense(SGA) was $429 Mil.
Total Current Liabilities was $1,616 Mil.
Long-Term Debt was $1,623 Mil.
Net Income was 75 + 485 + 57 + 53 = $670 Mil.
Non Operating Income was -11 + -84 + -11 + -17 = $-123 Mil.
Cash Flow from Operations was 11 + 202 + 24 + 185 = $422 Mil.
Accounts Receivable was $804 Mil.
Revenue was 1449 + 1375 + 1468 + 1609 = $5,901 Mil.
Gross Profit was 199 + 172 + 213 + 236 = $820 Mil.
Total Current Assets was $2,563 Mil.
Total Assets was $4,468 Mil.
Property, Plant and Equipment(Net PPE) was $1,210 Mil.
Depreciation, Depletion and Amortization(DDA) was $172 Mil.
Selling, General & Admin. Expense(SGA) was $389 Mil.
Total Current Liabilities was $1,152 Mil.
Long-Term Debt was $1,574 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)
=(1009 / 6078) / (804 / 5901)
=0.16600856 / 0.13624809
=1.2184

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)
=(820 / 5901) / (908 / 6078)
=0.1389595 / 0.14939125
=0.9302

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 - (2504 + 1676) / 5290) / (1 - (2563 + 1210) / 4468)
=0.20982987 / 0.15555058
=1.3489

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
=6078 / 5901
=1.03

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))
=(172 / (172 + 1210)) / (191 / (191 + 1676))
=0.12445731 / 0.10230316
=1.2166

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)
=(429 / 6078) / (389 / 5901)
=0.07058243 / 0.06592103
=1.0707

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)
=((1623 + 1616) / 5290) / ((1574 + 1152) / 4468)
=0.61228733 / 0.61011638
=1.0036

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
=(670 - -123 - 422) / 5290
=0.0701

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.

Dana Inc has a M-score of -1.81 signals that the company is likely to 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 local exchange's currency.

Dana Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.28640.67011.50170.98110.76590.87531.03460.9740.97331.1144
GMI 0.70741.67220.72290.42280.92760.87910.9920.95171.01940.9671
AQI 0.5581.61210.91280.80211.15121.00580.77851.09661.03451.4641
SGI 1.02550.92820.64581.13261.27820.95450.9370.97750.91580.9614
DEPI 0.76070.77530.8351.11910.9781.05541.0371.1491.18181.1371
SGAI 0.84940.99471.43811.12560.79811.09141.0321.02551.03881.0801
LVGI 1.47721.01320.90531.01121.00910.94911.34561.05081.05760.954
TATA -0.0101-0.0059-0.1199-0.049-0.0337-0.0043-0.0686-0.0133-0.04530.0763
M-score -2.73-2.30-3.14-3.00-2.55-2.71-3.03-2.58-2.77-1.87

Dana Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.9740.94990.99020.91290.97331.01211.01111.12711.11441.2184
GMI 0.95170.9650.9640.97671.01941.03371.02921.01760.96710.9302
AQI 1.09661.1311.13871.26011.03450.98660.97260.88311.46411.3489
SGI 0.97750.9640.96190.94110.91580.90270.90710.91810.96141.03
DEPI 1.1491.12871.16031.17511.18181.22271.15321.13421.13711.2166
SGAI 1.02551.02220.99951.02411.03881.06141.08861.07551.08011.0707
LVGI 1.05081.05771.06731.04431.05761.01791.04961.03510.9541.0036
TATA -0.0133-0.00130.00770.0183-0.0453-0.0441-0.0512-0.04550.07630.0701
M-score -2.58-2.54-2.45-2.43-2.77-2.74-2.80-2.70-1.87-1.81
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK