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Daktronics Inc (NAS:DAKT)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

DAKT' s 10-Year Beneish M-Score Range
Min: -3.29   Max: -1.7
Current: -2.86

-3.29
-1.7

During the past 13 years, the highest Beneish M-Score of Daktronics Inc was -1.70. The lowest was -3.29. 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 * 0.7883+0.528 * 1.0062+0.404 * 0.8147+0.892 * 1.0649+0.115 * 1.1117
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9579+4.679 * -0.0382-0.327 * 1.0418
=-2.86

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $90.2 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 $276.1 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.
Net Income was 1.826 + 2.871 + 11.79 + 5.72 = $22.2 Mil.
Non Operating Income was -0.004 + -0.237 + 0.278 + -0.392 = $-0.4 Mil.
Cash Flow from Operations was -3.044 + 8.617 + 35.244 + -4.618 = $36.2 Mil.
Accounts Receivable was $107.4 Mil.
Revenue was 124.482 + 111.05 + 149.871 + 132.919 = $518.3 Mil.
Gross Profit was 28.103 + 27.049 + 42.352 + 36.39 = $133.9 Mil.
Total Current Assets was $240.1 Mil.
Total Assets was $319.4 Mil.
Property, Plant and Equipment(Net PPE) was $61.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.6 Mil.
Selling, General & Admin. Expense(SGA) was $80.2 Mil.
Total Current Liabilities was $114.7 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)
=(90.194 / 551.97) / (107.435 / 518.322)
=0.16340381 / 0.20727463
=0.7883

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)
=(29.089 / 518.322) / (33.754 / 551.97)
=0.25832205 / 0.25673316
=1.0062

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 - (276.094 + 65.27) / 357.451) / (1 - (240.148 + 61.625) / 319.418)
=0.04500477 / 0.05524109
=0.8147

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
=551.97 / 518.322
=1.0649

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))
=(15.607 / (15.607 + 61.625)) / (14.501 / (14.501 + 65.27))
=0.20207945 / 0.18178285
=1.1117

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)
=(81.777 / 551.97) / (80.163 / 518.322)
=0.14815479 / 0.15465869
=0.9579

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 + 133.708) / 357.451) / ((0 + 114.692) / 319.418)
=0.37405966 / 0.35906555
=1.0418

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
=(22.207 - -0.355 - 36.199) / 357.451
=-0.0382

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 -2.86 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 0.911.09840.90960.91210.6541.25221.45880.95460.99710.7883
GMI 1.08631.04521.04050.98941.10641.11010.95281.08930.89711.0062
AQI 0.95910.75541.48430.88920.82570.81690.85870.95560.94020.8147
SGI 1.09741.34311.40031.15351.16460.67571.12331.10831.05881.0649
DEPI 0.96821.06571.31130.77580.82920.99480.98351.07621.0091.1117
SGAI 1.07110.8791.03521.03630.88391.29050.8180.98440.95050.958
LVGI 0.95511.30331.07480.89870.94870.86041.28140.95131.02971.0418
TATA -0.0494-0.05580.0415-0.1177-0.0598-0.157-0.0853-0.0362-0.0849-0.0382
M-score -2.68-2.49-1.79-3.02-2.93-3.29-2.49-2.54-2.91-2.86

Daktronics Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.95461.14161.03611.03040.99710.79730.94721.00740.78830.8994
GMI 1.08921.04150.95150.92480.89710.94121.01341.02351.00620.9836
AQI 0.95560.86230.8730.92270.94021.02221.02290.90580.81470.7607
SGI 1.10831.09541.10421.02831.05881.04051.03511.0681.06491.1064
DEPI 1.07621.08341.07911.02451.0091.04621.04421.06121.11171.132
SGAI 0.98440.99810.96521.00880.95050.97030.98390.94730.95790.9308
LVGI 0.94261.08891.01391.12791.03920.93871.06150.91891.04181.0141
TATA -0.0362-0.0389-0.0388-0.0794-0.0849-0.02-0.07-0.0981-0.0382-0.1064
M-score -2.54-2.50-2.60-2.91-2.91-2.72-2.82-2.85-2.86-3.06
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