Douglas Dynamics (Douglas Dynamics) Beneish M-Score

: -2.37 (As of Today)

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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Douglas Dynamics's Beneish M-Score or its related term are showing as below:

PLOW' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78 Med: -2.52 Max: -2.29
Current: -2.37

During the past 13 years, the highest Beneish M-Score of Douglas Dynamics was -2.29. The lowest was -2.78. And the median was -2.52.

Douglas Dynamics Beneish M-Score Historical Data

The historical data trend for Douglas Dynamics's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Douglas Dynamics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.51

-2.68

-2.78

-2.29

-2.37

Douglas Dynamics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-2.29	-2.18	-2.40	-2.66	-2.37

Competitive Comparison

For the Auto Parts subindustry, Douglas Dynamics's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Douglas Dynamics Beneish M-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Douglas Dynamics's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Douglas Dynamics's Beneish M-Score falls into.

Douglas Dynamics Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Douglas Dynamics for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1069

0.528 * 1.0403

0.404 * 0.9589

0.892 * 0.9223

0.115 * 0.9664

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0402

4.679 * 0.018965

0.327 * 1.0193

-2.37

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $88.6 Mil.
Revenue was 134.245 + 144.121 + 207.267 + 82.545 = $568.2 Mil.
Gross Profit was 29.503 + 32.129 + 61.363 + 11.275 = $134.3 Mil.
Total Current Assets was $262.2 Mil.
Total Assets was $593.4 Mil.
Property, Plant and Equipment(Net PPE) was $85.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.7 Mil.
Selling, General, & Admin. Expense(SGA) was $78.8 Mil.
Total Current Liabilities was $118.5 Mil.
Long-Term Debt & Capital Lease Obligation was $195.4 Mil.
Net Income was 7.077 + 5.792 + 23.964 + -13.11 = $23.7 Mil.
Non Operating Income was 0.019 + 0.035 + -0.089 + 0.035 = $0.0 Mil.
Cash Flow from Operations was 76.617 + 2.079 + -9.311 + -56.916 = $12.5 Mil.

Total Receivables was $86.8 Mil.
Revenue was 159.806 + 166.1 + 187.561 + 102.601 = $616.1 Mil.
Gross Profit was 37.89 + 41.269 + 51.233 + 21.064 = $151.5 Mil.
Total Current Assets was $252.9 Mil.
Total Assets was $596.9 Mil.
Property, Plant and Equipment(Net PPE) was $86.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.9 Mil.
Selling, General, & Admin. Expense(SGA) was $82.2 Mil.
Total Current Liabilities was $100.4 Mil.
Long-Term Debt & Capital Lease Obligation was $209.3 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(88.577 / 568.178)	/	(86.765 / 616.068)
	=	0.155897	/	0.140837
	=	1.1069

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)
	=	(151.456 / 616.068)	/	(134.27 / 568.178)
	=	0.245843	/	0.236317
	=	1.0403

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (262.238 + 85.348) / 593.418)	/	(1 - (252.921 + 86.092) / 596.891)
	=	0.414264	/	0.432035
	=	0.9589

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	568.178	/	616.068
	=	0.9223

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(20.938 / (20.938 + 86.092))	/	(21.662 / (21.662 + 85.348))
	=	0.195627	/	0.20243
	=	0.9664

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(78.841 / 568.178)	/	(82.183 / 616.068)
	=	0.138761	/	0.133399
	=	1.0402

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((195.378 + 118.517) / 593.418)	/	((209.324 + 100.431) / 596.891)
	=	0.528961	/	0.518947
	=	1.0193

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
	=	(23.723 - 0	-	12.469)	/	593.418
	=	0.018965

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Douglas Dynamics has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.

Douglas Dynamics Beneish M-Score Related Terms

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Douglas Dynamics (Douglas Dynamics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Douglas Dynamics Inc (NYSE:PLOW) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

5D4:Germany

Address

11270 W Park Place, Suite 300, Milwaukee, WI, USA, 53224

Website

https://www.douglasdynamics.com

Douglas Dynamics Inc is a manufacturer and upfitter of commercial vehicle attachments and equipment. The Company's portfolio includes snow and ice management attachments sold under the BLIZZARD, FISHER, HENDERSON, SNOWEX and WESTERN brands, turf care equipment under the TURFEX brand and industrial maintenance equipment under the SWEEPEX brand. The Company's portfolio also includes the upfit of attachments and storage solutions under the HENDERSON brand, and the DEJANA brand and its related sub-brands. The Company also leases fifteen manufacturing and upfit and service facilities located in Iowa, Maryland, Missouri, New Jersey, New York, Ohio, Pennsylvania, and Rhode Island. The Company conducts business in two segments: Work Truck Attachments and Work Truck Solutions.

Executives

Robert L Mccormick	officer: President and CEO	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
James L Janik	director	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Genderen Mark Van	officer: President - Work Truck Attm.	C/O DOUGLAS DYNAMICS, INC., 11270 W. PARK PLACE, SUITE 300, MILWAUKEE WI 53224
Linda R Evans	officer: VP of Human Resources	7777 N 73RD STREET, MILWAUKEE WI 53223
Jon J Sisulak	officer: Controller	7777 N 73RD STREET, MILWAUKEE WI 53223
Sarah C Lauber	officer: CFO and Secretary	833 EAST MICHIGAN STREET, SUITE 900, MILWAUKEE WI 53202
Joher Akolawala	director	11270 W. PARK PLACE, SUITE 300, MILWAUKEE WI 53224
Keith Hagelin	officer: VP, Operations	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Jonathon P. Sievert	officer: President - Henderson Products	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53223
Lisa R Bacus	director	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Andrew Dejana	officer: * See Remarks below	C/O DOUGLAS DYNAMICS, INC., 777 NORTH 73RD STREET, MILWAUKEE WI 53223
Robert J Young	officer: Controller	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Mark Adamson	officer: VP, Sales and Marketing	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Michael W Wickham	director	C/O ROADWAY CORP, 1077 GORGE BLVD, AKRON OH 44310
Margaret S Dano	director	FLEETWOOD ENTERPRISES INC, 3125 MYERS STREET PO BOX 7638, RIVERSIDE CA 92513-7638