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Daktronics Inc (NAS:DAKT)
Beneish M-Score
-2.18 (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 -2.18 signals that the company is a manipulator.

DAKT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46   Max: -1.7
Current: -2.18

-3.46
-1.7

During the past 13 years, the highest Beneish M-Score of Daktronics Inc was -1.70. The lowest was -3.46. 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 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 * 1.0362+0.528 * 1.1059+0.404 * 2.0656+0.892 * 0.9257+0.115 * 0.9103
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1165+4.679 * -0.0317-0.327 * 0.9278
=-2.18

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $77.6 Mil.
Revenue was 138.463 + 123.816 + 157.668 + 150.221 = $570.2 Mil.
Gross Profit was 27.976 + 22.029 + 35.513 + 35.501 = $121.0 Mil.
Total Current Assets was $245.2 Mil.
Total Assets was $349.9 Mil.
Property, Plant and Equipment(Net PPE) was $73.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.9 Mil.
Selling, General & Admin. Expense(SGA) was $91.6 Mil.
Total Current Liabilities was $121.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -2.93 + -1.953 + 3.168 + 3.776 = $2.1 Mil.
Non Operating Income was 0.539 + 0.007 + -0.231 + -0.443 = $-0.1 Mil.
Cash Flow from Operations was 11.082 + 11.417 + 0.858 + -10.082 = $13.3 Mil.
Accounts Receivable was $80.9 Mil.
Revenue was 158.086 + 118.123 + 173.115 + 166.618 = $615.9 Mil.
Gross Profit was 35.237 + 25.062 + 40.877 + 43.403 = $144.6 Mil.
Total Current Assets was $290.1 Mil.
Total Assets was $379.5 Mil.
Property, Plant and Equipment(Net PPE) was $72.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.0 Mil.
Selling, General & Admin. Expense(SGA) was $88.6 Mil.
Total Current Liabilities was $142.0 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)
=(77.554 / 570.168) / (80.857 / 615.942)
=0.13601956 / 0.13127372
=1.0362

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)
=(144.579 / 615.942) / (121.019 / 570.168)
=0.23472827 / 0.21225148
=1.1059

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 - (245.231 + 73.163) / 349.948) / (1 - (290.07 + 72.844) / 379.479)
=0.09016768 / 0.04365195
=2.0656

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
=570.168 / 615.942
=0.9257

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))
=(14.968 / (14.968 + 72.844)) / (16.856 / (16.856 + 73.163))
=0.17045506 / 0.18724936
=0.9103

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)
=(91.613 / 570.168) / (88.642 / 615.942)
=0.1606772 / 0.1439129
=1.1165

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 + 121.517) / 349.948) / ((0 + 142.02) / 379.479)
=0.34724302 / 0.37424996
=0.9278

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
=(2.061 - -0.128 - 13.275) / 349.948
=-0.0317

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 -2.18 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 own currency.

Daktronics Inc Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
DSRI 0.890.91780.63181.08261.22160.97740.89231.22530.87831.0362
GMI 1.04050.98941.1041.11250.95281.08930.89711.00621.09381.1059
AQI 1.48890.88920.82570.81690.85870.95560.94020.90860.86972.0656
SGI 1.40031.15351.16210.67711.12331.10831.05881.06491.11590.9257
DEPI 1.31130.77580.82920.99480.98351.07621.0091.11171.06650.9103
SGAI 1.03521.03630.88581.28770.8180.98440.95050.9580.97141.1165
LVGI 1.12890.89870.87470.90061.21161.0331.03921.16370.89570.9278
TATA 0.0415-0.1177-0.0598-0.157-0.0853-0.0362-0.0849-0.0382-0.0838-0.0317
M-score -1.82-3.02-2.93-3.46-2.69-2.54-3.01-2.46-2.84-2.18

Daktronics Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 1.04211.22530.89961.29011.07620.87830.92520.96650.94231.0362
GMI 1.02351.00620.98361.00521.04571.09371.13181.10671.10741.1059
AQI 0.90580.90860.76070.87580.84880.86970.99660.93010.96412.0656
SGI 1.0681.06491.10641.10351.09971.11591.03390.98770.99280.9257
DEPI 1.06121.11171.1321.13981.09411.06651.02280.97820.96270.9103
SGAI 0.94730.95790.93080.95430.9740.97141.01621.03971.03321.1165
LVGI 1.01491.16371.01411.06891.0180.89570.95120.88140.95190.9278
TATA -0.0981-0.0382-0.1053-0.0511-0.0145-0.0838-0.00520.0126-0.0525-0.0317
M-score -2.85-2.46-3.05-2.41-2.42-2.84-2.46-2.41-2.74-2.18
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