DoubleDown Interactive Co (DoubleDown Interactive Co) Beneish M-Score : -0.75 (As of Apr. 27, 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.

Warning Sign:

Beneish M-Score -0.75 higher than -1.78, which implies that the company might have manipulated its financial results.

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: -2.96 Med: -2.5 Max: -0.75
Current: -0.75

During the past 6 years, the highest Beneish M-Score of DoubleDown Interactive Co was -0.75. The lowest was -2.96. 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.

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DoubleDown Interactive Co Beneish M-Score Chart

DoubleDown Interactive Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.37

-2.63

-2.96

-0.75

DoubleDown Interactive Co 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	Get a 7-Day Free Trial															-2.96	-2.41	0.26	-0.06	-0.75

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:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.5944

0.528 * 0.971

0.404 * 0.9966

0.892 * 0.9621

0.115 * 5.3546

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4562

4.679 * 0.09831

0.327 * 0.4563

-0.75

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $32.5 Mil.
Revenue was 83.098 + 72.983 + 75.187 + 77.596 = $308.9 Mil.
Gross Profit was 58.311 + 49.325 + 50.282 + 51.877 = $209.8 Mil.
Total Current Assets was $315.8 Mil.
Total Assets was $803.3 Mil.
Property, Plant and Equipment(Net PPE) was $7.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.7 Mil.
Selling, General, & Admin. Expense(SGA) was $71.7 Mil.
Total Current Liabilities was $68.5 Mil.
Long-Term Debt & Capital Lease Obligation was $4.4 Mil.
Net Income was 25.926 + 26.93 + 24.357 + 23.672 = $100.9 Mil.
Non Operating Income was -4.236 + 2.357 + 0.583 + 2.371 = $1.1 Mil.
Cash Flow from Operations was 29.714 + 28.714 + -56.821 + 19.226 = $20.8 Mil.

Total Receivables was $21.2 Mil.
Revenue was 76.17 + 78.801 + 80.57 + 85.486 = $321.0 Mil.
Gross Profit was 50.329 + 51.682 + 53.073 + 56.638 = $211.7 Mil.
Total Current Assets was $312.9 Mil.
Total Assets was $792.1 Mil.
Property, Plant and Equipment(Net PPE) was $4.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.8 Mil.
Selling, General, & Admin. Expense(SGA) was $163.5 Mil.
Total Current Liabilities was $116.5 Mil.
Long-Term Debt & Capital Lease Obligation was $41.1 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)
	=	(32.517 / 308.864)	/	(21.198 / 321.027)
	=	0.105279	/	0.066032
	=	1.5944

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)
	=	(211.722 / 321.027)	/	(209.795 / 308.864)
	=	0.659515	/	0.679247
	=	0.971

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 - (315.754 + 7.574) / 803.344)	/	(1 - (312.882 + 4.294) / 792.052)
	=	0.597522	/	0.599552
	=	0.9966

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
	=	308.864	/	321.027
	=	0.9621

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))
	=	(3.801 / (3.801 + 4.294))	/	(0.728 / (0.728 + 7.574))
	=	0.469549	/	0.08769
	=	5.3546

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)
	=	(71.746 / 308.864)	/	(163.469 / 321.027)
	=	0.23229	/	0.509206
	=	0.4562

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)
	=	((4.42 + 68.505) / 803.344)	/	((41.079 + 116.482) / 792.052)
	=	0.090777	/	0.198928
	=	0.4563

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
	=	(100.885 - 1.075	-	20.833)	/	803.344
	=	0.09831

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 -0.75 signals that the company is likely to be a manipulator.

DoubleDown Interactive Co Beneish M-Score Related Terms

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DoubleDown Interactive Co (DoubleDown Interactive Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » DoubleDown Interactive Co Ltd (NAS:DDI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

DDI:Germany

Address

152, Teheran-ro Gangnam-gu, Gangnam Finance Center, 13th Floor, Seoul, KOR, 06236

Website

https://www.doubledowninteractive.com

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.