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Daktronics Inc (NAS:DAKT)
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.

Daktronics Inc has a M-score of -2.42 suggests that the company is not a manipulator.

DAKT' s 10-Year Beneish M-Score Range
Min: -3.79   Max: -1.37
Current: -2.42

-3.79
-1.37

During the past 13 years, the highest Beneish M-Score of Daktronics Inc was -1.37. The lowest was -3.79. And the median was -2.51.


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 Daktronics 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 * 1.0762+0.528 * 1.0457+0.404 * 0.8488+0.892 * 1.0997+0.115 * 1.0941
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.974+4.679 * -0.0145-0.327 * 1.018
=-2.42

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $78.5 Mil.
Revenue was 118.123 + 173.115 + 166.618 + 136.24 = $594.1 Mil.
Gross Profit was 25.062 + 40.877 + 43.403 + 33.754 = $143.1 Mil.
Total Current Assets was $271.7 Mil.
Total Assets was $357.6 Mil.
Property, Plant and Equipment(Net PPE) was $70.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.8 Mil.
Selling, General & Admin. Expense(SGA) was $87.2 Mil.
Total Current Liabilities was $124.6 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 0.561 + 7.737 + 8.745 + 1.826 = $18.9 Mil.
Non Operating Income was 0.179 + -0.225 + -0.172 + -0.004 = $-0.2 Mil.
Cash Flow from Operations was -9.017 + 11.873 + 24.461 + -3.044 = $24.3 Mil.
Accounts Receivable was $66.3 Mil.
Revenue was 115.369 + 161.639 + 138.722 + 124.482 = $540.2 Mil.
Gross Profit was 29.089 + 43.365 + 35.501 + 28.103 = $136.1 Mil.
Total Current Assets was $261.3 Mil.
Total Assets was $342.0 Mil.
Property, Plant and Equipment(Net PPE) was $62.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.8 Mil.
Selling, General & Admin. Expense(SGA) was $81.4 Mil.
Total Current Liabilities was $117.1 Mil.
Long-Term Debt was $0.0 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)
=(78.496 / 594.096) / (66.32 / 540.212)
=0.13212679 / 0.12276662
=1.0762

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)
=(40.877 / 540.212) / (25.062 / 594.096)
=0.25186038 / 0.24086343
=1.0457

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 - (271.706 + 69.963) / 357.605) / (1 - (261.339 + 62.676) / 341.969)
=0.04456314 / 0.05250183
=0.8488

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
=594.096 / 540.212
=1.0997

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))
=(14.774 / (14.774 + 62.676)) / (14.774 / (14.774 + 69.963))
=0.19075533 / 0.17435123
=1.0941

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)
=(87.175 / 594.096) / (81.384 / 540.212)
=0.14673554 / 0.15065197
=0.974

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)
=((0 + 124.644) / 357.605) / ((0 + 117.092) / 341.969)
=0.34855217 / 0.34240531
=1.018

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
=(18.869 - -0.222 - 24.273) / 357.605
=-0.0145

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.

Daktronics 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.

Daktronics Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
DSRI 1.24091.20830.890.63181.08261.22160.97740.89231.2253
GMI 1.08631.04521.04051.1041.11250.95281.08930.89711.0062
AQI 0.9490.75311.48890.82570.81690.85870.95560.94020.9086
SGI 1.09741.34311.40031.16210.67711.12331.10831.05881.0649
DEPI 1.05141.06571.311300.99480.98351.07621.0091.1117
SGAI 1.07110.8791.03520.88581.28770.8180.98440.95050.958
LVGI 1.00891.1861.12890.87470.9071.31840.95131.02971.0418
TATA -0.0494-0.05560.0415-0.0598-0.157-0.0853-0.0362-0.0849-0.0382
M-score -2.39-2.35-1.82-3.02-3.46-2.72-2.52-3.00-2.42

Daktronics Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 1.10271.07470.89231.08960.9081.04211.22530.89961.29011.0762
GMI 0.95150.92480.89710.94121.01341.02351.00620.98361.00521.0457
AQI 0.8730.92270.94021.02221.02290.90580.90860.76070.87580.8488
SGI 1.10421.02831.05881.04051.03511.0681.06491.10641.10351.0997
DEPI 1.07911.02451.0091.04621.04421.06121.11171.1321.13981.0941
SGAI 0.96521.00880.95050.97030.98390.94730.95790.93080.95430.974
LVGI 1.01391.12791.03920.93871.06150.91891.04181.01411.04251.018
TATA -0.0388-0.0794-0.0849-0.0212-0.0712-0.0981-0.0382-0.1053-0.0511-0.0145
M-score -2.54-2.87-3.01-2.45-2.86-2.82-2.42-3.05-2.40-2.42
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