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Digital Turbine (NAS:APPS) Beneish M-Score

: -3.12 (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 -3.12 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

APPS' s Beneish M-Score Range Over the Past 10 Years
Min: -10.51   Med: -2.13   Max: 1.43
Current: -3.12

During the past 13 years, the highest Beneish M-Score of Digital Turbine was 1.43. The lowest was -10.51. And the median was -2.13.


Digital Turbine Beneish M-Score Historical Data

The historical data trend for Digital Turbine'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.

Digital Turbine Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.12 -2.13 -1.39 -0.82 -3.12

Digital Turbine Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.82 -2.48 -2.62 -2.97 -3.12

Competitive Comparison

For the Software - Application subindustry, Digital Turbine'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.

   

Digital Turbine Beneish M-Score Distribution

For the Software industry and Technology sector, Digital Turbine's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Digital Turbine's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



Digital Turbine 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 Digital Turbine 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 * 0.7602+0.528 * 0.9655+0.404 * 1.094+0.892 * 0.8907+0.115 * 0.8892
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2083+4.679 * -0.075722-0.327 * 0.8025
=-3.12

* 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.

This Year (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was $178.2 Mil.
Revenue was 140.118 + 162.31 + 174.859 + 188.633 = $665.9 Mil.
Gross Profit was 59.482 + 79.616 + 88.779 + 92.351 = $320.2 Mil.
Total Current Assets was $266.1 Mil.
Total Assets was $1,266.6 Mil.
Property, Plant and Equipment(Net PPE) was $49.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $81.1 Mil.
Selling, General, & Admin. Expense(SGA) was $217.6 Mil.
Total Current Liabilities was $220.9 Mil.
Long-Term Debt & Capital Lease Obligation was $410.5 Mil.
Net Income was -13.932 + 4.019 + 11.664 + 14.922 = $16.7 Mil.
Non Operating Income was -0.594 + 0.025 + 0.031 + -0.259 = $-0.8 Mil.
Cash Flow from Operations was 15.862 + 33.205 + 27.68 + 36.629 = $113.4 Mil.
Total Receivables was $263.1 Mil.
Revenue was 184.135 + 216.818 + 188.568 + 158.075 = $747.6 Mil.
Gross Profit was 89.403 + 98.675 + 89.233 + 69.799 = $347.1 Mil.
Total Current Assets was $410.9 Mil.
Total Assets was $1,458.5 Mil.
Property, Plant and Equipment(Net PPE) was $46.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $57.5 Mil.
Selling, General, & Admin. Expense(SGA) was $202.1 Mil.
Total Current Liabilities was $385.3 Mil.
Long-Term Debt & Capital Lease Obligation was $520.8 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)
=(178.189 / 665.92) / (263.139 / 747.596)
=0.267583 / 0.35198
=0.7602

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)
=(347.11 / 747.596) / (320.228 / 665.92)
=0.464302 / 0.480881
=0.9655

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 - (266.066 + 49.4) / 1266.556) / (1 - (410.871 + 46.525) / 1458.509)
=0.750926 / 0.686395
=1.094

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
=665.92 / 747.596
=0.8907

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))
=(57.452 / (57.452 + 46.525)) / (81.073 / (81.073 + 49.4))
=0.552545 / 0.621378
=0.8892

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)
=(217.577 / 665.92) / (202.146 / 747.596)
=0.326731 / 0.270395
=1.2083

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)
=((410.522 + 220.92) / 1266.556) / ((520.785 + 385.263) / 1458.509)
=0.49855 / 0.621215
=0.8025

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
=(16.673 - -0.797 - 113.376) / 1266.556
=-0.075722

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.

Digital Turbine has a M-score of -3.12 suggests that the company is unlikely to be a manipulator.


Digital Turbine Beneish M-Score Related Terms

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Digital Turbine (NAS:APPS) Business Description

Digital Turbine logo
Traded in Other Exchanges
Address
110 San Antonio Street, Suite 160, Austin, TX, USA, 78701
Digital Turbine Inc is an independent mobile growth platform. It offers end-to-end products and solutions to all participants in the mobile application ecosystem, enabling brand discovery and advertising, user acquisition and engagement, and operational efficiency for advertisers. Its operating segments are On Device Media (ODM); In App Media-AdColony; and In App Media-Fyber. The company derives key revenue from the ODM segment by providing solutions to all participants in the mobile application ecosystem who want to connect with end users and consumers who hold the device, including mobile carriers and device original equipment manufacturers (OEMs) that participate in the app economy, app publishers and developers, and brands and advertising agencies. It has a global business presence.
Executives
Senthilkumaran Kanagaratnam officer: Chief Technology Officer 5717 LA SEYNE PLACE, SAN JOSE CA 95138
Matthew Gillis officer: President 2400 BOSTON STREET, SUITE 201, BALTIMORE MD 21224
Mary Spilman director C/O CRITEO LEGAL DEPT., 387 PARK AVENUE SOUTH, 12TH FLOOR, NEW YORK NY 10016
Michael Benjamin Miller officer: Chief Accounting Officer 360 WEST FOREST GROVE ROAD, LUCAS TX 75002
Holyce Hess Groos director 58 CHRISTIANA COURT, LAKE GEORGE NY 12845
Christine Collins officer: CTO 111 NUECES STREET, AUSTIN TX 78701
Michelle M Sterling director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Roy H Chestnutt director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10036
J. Barrett Garrison officer: EVP, CFO 1300 GUADALUPE STREET, SUITE 302, AUSTIN TX 78701
David Wesch officer: Acting CAO 1300 GUADALUPE STREET, SUITE 302, AUSTIN TX 78701
Mohan S Gyani director 7277 164TH AVE NE, BLDG1, REDMOND WA 98052
Judson Bowman director 1300 GUADALUPE STREET, SUITE 302, AUSTIN TX 78701
Craig I Forman director 1375 PEACHTREE STREET, ATLANTA GA 30309
James Alejandro officer: Chief Accounting Officer 2811 CAHUENGA BOULEVARD WEST, LOS ANGELES CA 90068
Kirstie Elizabeth Brown officer: Head, Global Fin. Obligations 2811 CAHUENGA BOULEVARD WEST, LOS ANGELES CA 90068

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