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Daktronics Inc (NAS:DAKT)
Beneish M-Score
-2.59 (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 -2.59 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: -2.59

-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 -2.56.


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 * 0.9853+0.528 * 0.9935+0.404 * 1.8302+0.892 * 1.0091+0.115 * 0.8521
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0609+4.679 * -0.0788-0.327 * 1.134
=-2.59

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Oct16) TTM:Last Year (Oct15) TTM:
Accounts Receivable was $90.4 Mil.
Revenue was 169.992 + 157.146 + 138.463 + 123.816 = $589.4 Mil.
Gross Profit was 44.308 + 39.067 + 27.976 + 22.029 = $133.4 Mil.
Total Current Assets was $260.4 Mil.
Total Assets was $357.7 Mil.
Property, Plant and Equipment(Net PPE) was $69.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.8 Mil.
Selling, General & Admin. Expense(SGA) was $94.8 Mil.
Total Current Liabilities was $122.9 Mil.
Long-Term Debt was $14.7 Mil.
Net Income was 9.021 + 5.539 + -2.93 + -1.953 = $9.7 Mil.
Non Operating Income was 0.149 + -0.094 + 0.539 + 0.007 = $0.6 Mil.
Cash Flow from Operations was 8.408 + 6.598 + 11.082 + 11.187 = $37.3 Mil.
Accounts Receivable was $90.9 Mil.
Revenue was 157.668 + 150.221 + 158.086 + 118.123 = $584.1 Mil.
Gross Profit was 35.513 + 35.501 + 35.237 + 25.062 = $131.3 Mil.
Total Current Assets was $268.3 Mil.
Total Assets was $358.4 Mil.
Property, Plant and Equipment(Net PPE) was $74.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.8 Mil.
Selling, General & Admin. Expense(SGA) was $88.5 Mil.
Total Current Liabilities was $121.6 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)
=(90.421 / 589.417) / (90.938 / 584.098)
=0.15340752 / 0.15568963
=0.9853

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)
=(131.313 / 584.098) / (133.38 / 589.417)
=0.2248133 / 0.2262914
=0.9935

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 - (260.391 + 69.138) / 357.709) / (1 - (268.265 + 74.744) / 358.438)
=0.07877912 / 0.0430451
=1.8302

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
=589.417 / 584.098
=1.0091

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))
=(15.781 / (15.781 + 74.744)) / (17.784 / (17.784 + 69.138))
=0.17432753 / 0.20459723
=0.8521

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)
=(94.796 / 589.417) / (88.549 / 584.098)
=0.16083011 / 0.15159956
=1.0609

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)
=((14.74 + 122.875) / 357.709) / ((0 + 121.603) / 358.438)
=0.38471215 / 0.33925811
=1.134

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
=(9.677 - 0.601 - 37.275) / 357.709
=-0.0788

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 -2.59 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 local exchange's 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

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DSRI 0.89961.29011.07620.87830.92520.96650.94231.03621.08450.9853
GMI 0.98361.00521.04571.09371.13181.10671.10741.10591.0560.9935
AQI 0.76070.87580.84880.86970.99660.93010.96412.06561.8581.8302
SGI 1.10641.10351.09971.11591.03390.98770.99280.92570.96261.0091
DEPI 1.1321.13981.09411.06651.02280.97530.96270.91030.85290.8521
SGAI 0.93080.95430.9740.97141.01621.03971.03321.11651.09941.0609
LVGI 1.01411.06891.0180.89570.95120.88140.95190.92781.03611.134
TATA -0.1053-0.0511-0.0145-0.0838-0.00520.0119-0.0525-0.0317-0.0719-0.0788
M-score -3.05-2.41-2.42-2.84-2.46-2.41-2.74-2.18-2.44-2.59
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