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Daktronics Inc (NAS:DAKT)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

DAKT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77   Max: -1.37
Current: -2.74

-3.77
-1.37

During the past 13 years, the highest Beneish M-Score of Daktronics Inc was -1.37. The lowest was -3.77. 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 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 * 0.9423+0.528 * 1.1074+0.404 * 0.9641+0.892 * 0.9928+0.115 * 0.9627
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0332+4.679 * -0.0525-0.327 * 0.9519
=-2.74

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $73.4 Mil.
Revenue was 123.816 + 157.668 + 150.221 + 158.086 = $589.8 Mil.
Gross Profit was 22.029 + 35.513 + 35.501 + 35.237 = $128.3 Mil.
Total Current Assets was $259.8 Mil.
Total Assets was $348.1 Mil.
Property, Plant and Equipment(Net PPE) was $73.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.2 Mil.
Selling, General & Admin. Expense(SGA) was $89.4 Mil.
Total Current Liabilities was $115.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -1.953 + 3.168 + 3.776 + 3.839 = $8.8 Mil.
Non Operating Income was 0.007 + -0.231 + -0.443 + -0.28 = $-0.9 Mil.
Cash Flow from Operations was 11.417 + 0.858 + -10.082 + 25.851 = $28.0 Mil.
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.



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)
=(73.43 / 589.791) / (78.496 / 594.096)
=0.12450173 / 0.13212679
=0.9423

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)
=(35.513 / 594.096) / (22.029 / 589.791)
=0.24086343 / 0.21750078
=1.1074

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 - (259.803 + 73.378) / 348.138) / (1 - (271.706 + 69.963) / 357.605)
=0.04296285 / 0.04456314
=0.9641

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
=589.791 / 594.096
=0.9928

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 + 69.963)) / (16.228 / (16.228 + 73.378))
=0.17435123 / 0.18110394
=0.9627

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)
=(89.414 / 589.791) / (87.175 / 594.096)
=0.15160286 / 0.14673554
=1.0332

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 + 115.504) / 348.138) / ((0 + 124.644) / 357.605)
=0.33177648 / 0.34855217
=0.9519

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
=(8.83 - -0.947 - 28.044) / 348.138
=-0.0525

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 -2.74 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

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
DSRI 1.20830.890.91780.63041.08491.22160.97740.89231.22530.8783
GMI 1.04521.04050.98941.10641.11010.95281.08930.89711.00621.0938
AQI 0.75311.48890.88920.82570.81690.85870.95560.94020.90860.8159
SGI 1.34311.40031.15351.16460.67571.12331.10831.05881.06491.1159
DEPI 1.06571.31130.77580.82920.99480.98351.07621.0091.11171.0665
SGAI 0.8791.03521.03630.88391.29050.8180.98440.95050.9580.9714
LVGI 1.1861.12890.89870.87470.90061.21161.0331.03921.04181.0005
TATA -0.05560.0415-0.1177-0.0598-0.157-0.0853-0.0362-0.0849-0.0382-0.0838
M-score -2.35-1.82-3.02-2.93-3.46-2.69-2.54-3.01-2.42-2.89

Daktronics Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 0.9081.04211.22530.89961.29011.07620.87830.92520.96650.9423
GMI 1.01341.02351.00620.98361.00521.04571.09371.13181.10671.1074
AQI 1.02290.90580.90860.76070.87580.84880.81590.99660.93010.9641
SGI 1.03511.0681.06491.10641.10351.09971.11591.03390.98770.9928
DEPI 1.04421.06121.11171.1321.13981.09411.06651.02280.97820.9627
SGAI 0.98390.94730.95790.93080.95430.9740.97141.01621.03971.0332
LVGI 1.04811.01491.04181.01411.06891.0181.00050.95120.88140.9519
TATA -0.0712-0.0981-0.0382-0.1053-0.0511-0.0145-0.0838-0.00520.0126-0.0525
M-score -2.86-2.85-2.42-3.05-2.41-2.42-2.89-2.46-2.41-2.74
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