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Daktronics Inc (NAS:DAKT)
Beneish M-Score
-2.40 (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 -2.40 suggests that the company is not a manipulator.

DAKT' s 10-Year Beneish M-Score Range
Min: -3.79   Max: -1.37
Current: -2.4

-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 -2.52.


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 * 1.2901+0.528 * 1.0052+0.404 * 0.8758+0.892 * 1.1035+0.115 * 1.1398
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9543+4.679 * -0.0511-0.327 * 1.0425
=-2.40

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $95.3 Mil.
Revenue was 173.115 + 166.618 + 136.24 + 115.369 = $591.3 Mil.
Gross Profit was 40.877 + 43.403 + 33.754 + 29.089 = $147.1 Mil.
Total Current Assets was $296.3 Mil.
Total Assets was $385.6 Mil.
Property, Plant and Equipment(Net PPE) was $71.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.6 Mil.
Selling, General & Admin. Expense(SGA) was $86.2 Mil.
Total Current Liabilities was $148.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 7.737 + 8.745 + 1.826 + 2.871 = $21.2 Mil.
Non Operating Income was -0.225 + -0.172 + -0.004 + -0.237 = $-0.6 Mil.
Cash Flow from Operations was 11.873 + 24.461 + -3.044 + 8.225 = $41.5 Mil.
Accounts Receivable was $66.9 Mil.
Revenue was 161.639 + 138.722 + 124.482 + 111.05 = $535.9 Mil.
Gross Profit was 43.365 + 35.501 + 28.103 + 27.049 = $134.0 Mil.
Total Current Assets was $266.2 Mil.
Total Assets was $347.6 Mil.
Property, Plant and Equipment(Net PPE) was $63.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.1 Mil.
Selling, General & Admin. Expense(SGA) was $81.9 Mil.
Total Current Liabilities was $125.2 Mil.
Long-Term Debt was $3.2 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)
=(95.26 / 591.342) / (66.913 / 535.893)
=0.16109121 / 0.12486261
=1.2901

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)
=(43.403 / 535.893) / (40.877 / 591.342)
=0.25008351 / 0.24879511
=1.0052

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 - (296.287 + 71.425) / 385.556) / (1 - (266.246 + 63.016) / 347.633)
=0.04628121 / 0.05284596
=0.8758

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
=591.342 / 535.893
=1.1035

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))
=(15.147 / (15.147 + 63.016)) / (14.631 / (14.631 + 71.425))
=0.19378734 / 0.1700172
=1.1398

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)
=(86.221 / 591.342) / (81.88 / 535.893)
=0.14580564 / 0.1527917
=0.9543

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 + 148.4) / 385.556) / ((3.17 + 125.18) / 347.633)
=0.38489869 / 0.36921121
=1.0425

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
=(21.179 - -0.638 - 41.515) / 385.556
=-0.0511

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 -2.40 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

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 1.26641.10271.07470.89231.08960.9081.04211.22530.89961.2901
GMI 1.04150.95150.92480.89710.94121.01341.02351.00620.98361.0052
AQI 0.86230.8730.92270.94021.02221.02290.90580.90860.76070.8758
SGI 1.09541.10421.02831.05881.04051.03511.0681.06491.10641.1035
DEPI 1.08341.07911.02451.0091.04621.04421.06121.11171.1321.1398
SGAI 0.99810.96521.00880.95050.97030.98390.94730.95790.93080.9543
LVGI 1.08891.01391.12791.03920.93871.06150.91891.04181.01411.0425
TATA -0.0389-0.0388-0.0794-0.0849-0.0212-0.0712-0.0981-0.0382-0.1053-0.0511
M-score -2.38-2.54-2.87-3.01-2.45-2.86-2.82-2.42-3.05-2.40
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