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DDI (DoubleDown Interactive Co) Beneish M-Score : -2.54 (As of Dec. 15, 2024)


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What is DoubleDown Interactive Co Beneish M-Score?

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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DDI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.59   Med: -2.5   Max: 0.26
Current: -2.54

During the past 6 years, the highest Beneish M-Score of DoubleDown Interactive Co was 0.26. The lowest was -3.59. And the median was -2.50.


DoubleDown Interactive Co Beneish M-Score Historical Data

The historical data trend for DoubleDown Interactive Co'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.

DoubleDown Interactive Co Beneish M-Score Chart

DoubleDown Interactive Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - -2.37 -2.63 -2.96 -0.75

DoubleDown Interactive Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial 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 -0.06 -0.75 -1.59 -2.45 -2.54

Competitive Comparison of DoubleDown Interactive Co's Beneish M-Score

For the Electronic Gaming & Multimedia subindustry, DoubleDown Interactive Co'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.


DoubleDown Interactive Co's Beneish M-Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, DoubleDown Interactive Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where DoubleDown Interactive Co's Beneish M-Score falls into.



DoubleDown Interactive Co 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 DoubleDown Interactive Co 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 * 1.0572+0.528 * 0.9589+0.404 * 0.8755+0.892 * 1.1342+0.115 * 0.2322
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9815+4.679 * -0.016573-0.327 * 0.9993
=-2.54

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $33.4 Mil.
Revenue was 82.981 + 88.236 + 88.143 + 83.098 = $342.5 Mil.
Gross Profit was 58.221 + 61.416 + 60.77 + 58.311 = $238.7 Mil.
Total Current Assets was $415.9 Mil.
Total Assets was $879.8 Mil.
Property, Plant and Equipment(Net PPE) was $5.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.1 Mil.
Selling, General, & Admin. Expense(SGA) was $83.9 Mil.
Total Current Liabilities was $19.6 Mil.
Long-Term Debt & Capital Lease Obligation was $41.6 Mil.
Net Income was 25.042 + 33.177 + 30.308 + 25.926 = $114.5 Mil.
Non Operating Income was -4.89 + 3.044 + 4.275 + -4.236 = $-1.8 Mil.
Cash Flow from Operations was 31.836 + 34.377 + 34.915 + 29.714 = $130.8 Mil.
Total Receivables was $27.8 Mil.
Revenue was 72.983 + 75.187 + 77.596 + 76.17 = $301.9 Mil.
Gross Profit was 49.325 + 50.282 + 51.877 + 50.329 = $201.8 Mil.
Total Current Assets was $305.3 Mil.
Total Assets was $760.6 Mil.
Property, Plant and Equipment(Net PPE) was $2.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.2 Mil.
Selling, General, & Admin. Expense(SGA) was $75.4 Mil.
Total Current Liabilities was $52.8 Mil.
Long-Term Debt & Capital Lease Obligation was $0.2 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)
=(33.376 / 342.458) / (27.834 / 301.936)
=0.09746 / 0.092185
=1.0572

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)
=(201.813 / 301.936) / (238.718 / 342.458)
=0.668397 / 0.697072
=0.9589

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 - (415.922 + 5.033) / 879.849) / (1 - (305.308 + 2.166) / 760.583)
=0.52156 / 0.595739
=0.8755

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
=342.458 / 301.936
=1.1342

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))
=(0.208 / (0.208 + 2.166)) / (3.05 / (3.05 + 5.033))
=0.087616 / 0.377335
=0.2322

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)
=(83.941 / 342.458) / (75.402 / 301.936)
=0.245113 / 0.249728
=0.9815

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)
=((41.643 + 19.57) / 879.849) / ((0.176 + 52.775) / 760.583)
=0.069572 / 0.069619
=0.9993

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
=(114.453 - -1.807 - 130.842) / 879.849
=-0.016573

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.

DoubleDown Interactive Co has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.


DoubleDown Interactive Co Beneish M-Score Related Terms

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DoubleDown Interactive Co Business Description

Traded in Other Exchanges
Address
152, Teheran-ro Gangnam-gu, Gangnam Finance Center, 13th Floor, Seoul, KOR, 06236
DoubleDown Interactive Co Ltd is a developer and publisher of digital games on mobile and web-based platforms. The company is the creator of multi-format interactive entertainment experiences for casual players. Its market opportunity includes casual gaming globally, which includes slots, puzzles, cards, match three, and other similar games. Within the social casino segment of casual gaming, which includes free-to-play online slots, poker, table games, and bingo. Other games developed by the company are DoubleDown Fort, DoubleDown Classic, and Ellen's Road to Riches. The company has a presence in the international market, and it derives a majority of its revenue from the United States of America.