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Daktronics Inc (NAS:DAKT)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

DAKT' s 10-Year Beneish M-Score Range
Min: -3.46   Max: -1.7
Current: -2.89

-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 -2.51.


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 * 0.8783+0.528 * 1.0937+0.404 * 0.8159+0.892 * 1.1159+0.115 * 1.0665
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9714+4.679 * -0.0838-0.327 * 1.0005
=-2.89

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
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 $291.1 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.
Net Income was 3.839 + 0.561 + 7.737 + 8.745 = $20.9 Mil.
Non Operating Income was -0.28 + 0.179 + -0.225 + -0.172 = $-0.5 Mil.
Cash Flow from Operations was 25.851 + -9.017 + 11.873 + 24.461 = $53.2 Mil.
Accounts Receivable was $82.5 Mil.
Revenue was 136.24 + 115.369 + 161.639 + 138.722 = $552.0 Mil.
Gross Profit was 33.754 + 29.089 + 43.365 + 35.501 = $141.7 Mil.
Total Current Assets was $274.2 Mil.
Total Assets was $357.5 Mil.
Property, Plant and Equipment(Net PPE) was $65.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.5 Mil.
Selling, General & Admin. Expense(SGA) was $81.8 Mil.
Total Current Liabilities was $133.7 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)
=(80.857 / 615.942) / (82.5 / 551.97)
=0.13127372 / 0.14946464
=0.8783

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)
=(25.062 / 551.97) / (35.237 / 615.942)
=0.25673316 / 0.23472827
=1.0937

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 - (291.095 + 72.844) / 379.479) / (1 - (274.24 + 65.27) / 357.451)
=0.04095088 / 0.05019149
=0.8159

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
=615.942 / 551.97
=1.1159

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))
=(14.501 / (14.501 + 65.27)) / (14.968 / (14.968 + 72.844))
=0.18178285 / 0.17045506
=1.0665

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)
=(88.642 / 615.942) / (81.777 / 551.97)
=0.1439129 / 0.14815479
=0.9714

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 + 142.02) / 379.479) / ((0 + 133.708) / 357.451)
=0.37424996 / 0.37405966
=1.0005

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
=(20.882 - -0.498 - 53.168) / 379.479
=-0.0838

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 -2.89 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 1.20830.890.63181.08261.22160.97740.89231.22530.8783
GMI 1.04521.04051.1041.11250.95281.08930.89711.00621.0938
AQI 0.75311.48890.82570.81690.85870.95560.94020.90860.8159
SGI 1.34311.40031.16210.67711.12331.10831.05881.06491.1159
DEPI 1.06571.311300.99480.98351.07621.0091.11171.0665
SGAI 0.8791.03520.88581.28770.8180.98440.95050.9580.9714
LVGI 1.1861.12890.87470.9071.31840.95131.02971.04181.0005
TATA -0.05560.0415-0.0598-0.157-0.0853-0.0362-0.0849-0.0382-0.0838
M-score -2.35-1.82-3.02-3.46-2.72-2.52-3.00-2.42-2.89

Daktronics Inc Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
DSRI 0.89231.08960.9081.04211.22530.89961.29011.07620.87830.9252
GMI 0.89710.94121.01341.02351.00620.98361.00521.04571.09371.1318
AQI 0.94021.02221.02290.90580.90860.76070.87580.84880.81590.9966
SGI 1.05881.04051.03511.0681.06491.10641.10351.09971.11591.0339
DEPI 1.0091.04621.04421.06121.11171.1321.13981.09411.06651.0228
SGAI 0.95050.97030.98390.94730.95790.93080.95430.9740.97141.0162
LVGI 1.03920.93871.06150.91891.04181.01411.04251.0181.00050.9512
TATA -0.0849-0.0212-0.0712-0.0981-0.0382-0.1053-0.0511-0.0145-0.0838-0.0052
M-score -3.01-2.45-2.86-2.82-2.42-3.05-2.40-2.42-2.89-2.46
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