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DFIN (Donnelley Financial Solutions) Beneish M-Score : -3.05 (As of Dec. 11, 2024)


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What is Donnelley Financial Solutions 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 -3.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DFIN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.8   Med: -2.79   Max: -2.51
Current: -3.05

During the past 11 years, the highest Beneish M-Score of Donnelley Financial Solutions was -2.51. The lowest was -3.80. And the median was -2.79.


Donnelley Financial Solutions Beneish M-Score Historical Data

The historical data trend for Donnelley Financial Solutions'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.

Donnelley Financial Solutions Beneish M-Score Chart

Donnelley Financial Solutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.51 -3.16 -2.51 -2.87 -2.76

Donnelley Financial Solutions 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 -2.73 -2.76 -2.78 -2.98 -3.05

Competitive Comparison of Donnelley Financial Solutions's Beneish M-Score

For the Software - Application subindustry, Donnelley Financial Solutions'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.


Donnelley Financial Solutions's Beneish M-Score Distribution in the Software Industry

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

* The bar in red indicates where Donnelley Financial Solutions's Beneish M-Score falls into.



Donnelley Financial Solutions 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 Donnelley Financial Solutions 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 * 0.9223+0.528 * 0.9356+0.404 * 1.016+0.892 * 1.0174+0.115 * 0.839
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0639+4.679 * -0.104789-0.327 * 0.8842
=-3.05

* 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 $178.0 Mil.
Revenue was 179.5 + 242.7 + 203.4 + 176.5 = $802.1 Mil.
Gross Profit was 110.8 + 156.2 + 123.3 + 102.6 = $492.9 Mil.
Total Current Assets was $237.3 Mil.
Total Assets was $843.6 Mil.
Property, Plant and Equipment(Net PPE) was $23.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $73.7 Mil.
Selling, General, & Admin. Expense(SGA) was $292.9 Mil.
Total Current Liabilities was $207.1 Mil.
Long-Term Debt & Capital Lease Obligation was $130.9 Mil.
Net Income was 8.7 + 44.1 + 33.3 + 10.6 = $96.7 Mil.
Non Operating Income was -1.2 + -0.9 + -1.4 + -0.9 = $-4.4 Mil.
Cash Flow from Operations was 86.4 + 56.2 + -27.9 + 74.8 = $189.5 Mil.
Total Receivables was $189.7 Mil.
Revenue was 180 + 242.1 + 198.6 + 167.7 = $788.4 Mil.
Gross Profit was 109.1 + 143.9 + 108.3 + 92 = $453.3 Mil.
Total Current Assets was $229.9 Mil.
Total Assets was $839.3 Mil.
Property, Plant and Equipment(Net PPE) was $38.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $67.7 Mil.
Selling, General, & Admin. Expense(SGA) was $270.6 Mil.
Total Current Liabilities was $196.8 Mil.
Long-Term Debt & Capital Lease Obligation was $183.5 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 / 802.1) / (189.7 / 788.4)
=0.221917 / 0.240614
=0.9223

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)
=(453.3 / 788.4) / (492.9 / 802.1)
=0.574962 / 0.614512
=0.9356

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 - (237.3 + 23.3) / 843.6) / (1 - (229.9 + 38.5) / 839.3)
=0.691086 / 0.68021
=1.016

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
=802.1 / 788.4
=1.0174

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))
=(67.7 / (67.7 + 38.5)) / (73.7 / (73.7 + 23.3))
=0.637476 / 0.759794
=0.839

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)
=(292.9 / 802.1) / (270.6 / 788.4)
=0.365166 / 0.343227
=1.0639

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)
=((130.9 + 207.1) / 843.6) / ((183.5 + 196.8) / 839.3)
=0.400664 / 0.453116
=0.8842

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
=(96.7 - -4.4 - 189.5) / 843.6
=-0.104789

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.

Donnelley Financial Solutions has a M-score of -3.05 suggests that the company is unlikely to be a manipulator.


Donnelley Financial Solutions Beneish M-Score Related Terms

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Donnelley Financial Solutions Business Description

Traded in Other Exchanges
N/A
Address
35 West Wacker Drive, Chicago, IL, USA, 60601
Donnelley Financial Solutions Inc is a global risk and compliance solutions company. The company provides regulatory filing and deal solutions via its software-as-a-service, technology-enabled services, and print and distribution solutions to public and private companies, mutual funds, and other regulated investment firms. The company operates in four segments: Capital Markets - Software Solutions, Capital Markets - Compliance and Communications Management, Investment Companies - Software Solutions and Investment Companies - Compliance and Communications Management. Its geographical segments are the United States( US), Europe, Asia, Canada, and others, of which the US accounts for the vast majority of its total revenue.
Executives
Daniel Leib director, officer: Chief Executive Officer C/O RR DONNELLEY & SONS COMPANY, 111 SOUTH WACKER DRIVE, CHICAGO IL 60606
Jeffrey Jacobowitz director, 10 percent owner C/O ROBOTTI & COMPANY, 52 VANDERBILT AVENUE, 4TH FLOOR, NEW YORK NY 10017
Luis A Aguilar director 35 EAST WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Eric J Johnson officer: President, GIC C/O DONNELLEY FINANCIAL SOLUTIONS, 35 WEST WACKER DRIVE, CHICAGO IL 60601
Craig Clay officer: President, GCM C/O DONNELLEY FINANCIAL SOLUTIONS, 35 WEST WACKER DRIVE, CHICAGO IL 60601
Robert Kirk Williams officer: Chief People & Admin Officer C/O DONNELLEY FINANCIAL SOLUTIONS, 35 W WACKER DRIVE, CHICAGO IL 60601
Kami Turner officer: See Remarks C/O DONNELLEY FINANCIAL SOLUTIONS, 35 W. WACKER DR, CHICAGO IL 60601
Simcoe Capital Management, Llc 10 percent owner 540 MADISON AVENUE, 27TH FLOOR, NEW YORK NY 10022
Leah Marie Trzcinski officer: General Counsel C/O DONNELLEY FINANCIAL SOLUTIONS, 35 W WACKER DRIVE, CHICAGO IL 60601
Jennifer B Reiners officer: General Counsel C/O DONNELLEY FINANCIAL SOLUTIONS, 35 W. WACKER DR, CHICAGO IL 60601
Juliet S Ellis director C/O DONNELLEY FINANCIAL SOLUTIONS, 35 WEST WACKER DRIVE, CHICAGO IL 60601
Chandar Pattabhiram director C/O DONNELLEY FINANCIAL SOLUTIONS, 35 W. WACKER DR., CHICAGO IL 60601
David A Gardella officer: Chief Financial Officer C/O DONNELLEY FINANCIAL SOLUTIONS, 35 W. WACKER DR, CHICAGO IL 60601
Gary G Greenfield director AVID, 75 NETWORK DRIVE, BURLINGTON MA 01803
Richard L Crandall director 800 DELAWARE AVE, COMPUTER TASK GROUP INC, BUFFALO NY 14209