DraftKings Beneish M-Score Historical Data
The historical data trend for DraftKings'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.
DraftKings Beneish M-Score Chart
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DraftKings Annual Data
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Trend |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
-1.01 |
-3.81 |
-2.24 |
-2.82 |
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DraftKings Quarterly Data
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Dec18 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.24 |
-2.68 |
-3.00 |
-2.69 |
-2.82 |
Competitive Comparison of DraftKings's Beneish M-Score
For the Gambling subindustry, DraftKings'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.
DraftKings's Beneish M-Score Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, DraftKings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where DraftKings's Beneish M-Score falls into.
DraftKings 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 DraftKings 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 * 1.0111 | + | 0.528 * 0.9009 | + | 0.404 * 0.9623 | + | 0.892 * 1.636 | + | 0.115 * 1.0122 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.5666 | + | 4.679 * -0.188251 | - | 0.327 * 1.1508 |
| = | -2.82 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $349 Mil.
Revenue was 1230.857 + 789.957 + 874.927 + 769.652 = $3,665 Mil.
Gross Profit was 514.199 + 246.503 + 364.604 + 247.912 = $1,373 Mil.
Total Current Assets was $2,071 Mil.
Total Assets was $3,945 Mil.
Property, Plant and Equipment(Net PPE) was $155 Mil.
Depreciation, Depletion and Amortization(DDA) was $202 Mil.
Selling, General, & Admin. Expense(SGA) was $1,807 Mil.
Total Current Liabilities was $1,550 Mil.
Long-Term Debt & Capital Lease Obligation was $1,335 Mil.
Net Income was -44.621 + -283.103 + -77.27 + -397.148 = $-802 Mil.
Non Operating Income was -11.787 + -8.968 + -19.996 + -17.016 = $-58 Mil.
Cash Flow from Operations was 72.067 + 145.395 + -17.721 + -201.492 = $-2 Mil.
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Total Receivables was $211 Mil.
Revenue was 855.133 + 501.938 + 466.185 + 417.205 = $2,240 Mil.
Gross Profit was 369.698 + 129.246 + 153.418 + 103.826 = $756 Mil.
Total Current Assets was $2,085 Mil.
Total Assets was $4,040 Mil.
Property, Plant and Equipment(Net PPE) was $126 Mil.
Depreciation, Depletion and Amortization(DDA) was $169 Mil.
Selling, General, & Admin. Expense(SGA) was $1,950 Mil.
Total Current Liabilities was $1,246 Mil.
Long-Term Debt & Capital Lease Obligation was $1,320 Mil.
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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) |
| = | (349.309 / 3665.393) | / | (211.18 / 2240.461) |
| = | 0.095299 | / | 0.094257 |
| | = | 1.0111 |
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) |
| = | (756.188 / 2240.461) | / | (1373.218 / 3665.393) |
| = | 0.337514 | / | 0.374644 |
| | = | 0.9009 |
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 - (2071.367 + 154.68) / 3944.866) | / | (1 - (2084.841 + 126.059) / 4040.152) |
| = | 0.43571 | / | 0.452768 |
| | = | 0.9623 |
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 |
| = | 3665.393 | / | 2240.461 |
| | = | 1.636 |
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)) |
| = | (169.252 / (169.252 + 126.059)) | / | (201.92 / (201.92 + 154.68)) |
| = | 0.573131 | / | 0.566237 |
| | = | 1.0122 |
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) |
| = | (1807.287 / 3665.393) | / | (1949.697 / 2240.461) |
| = | 0.493068 | / | 0.870221 |
| | = | 0.5666 |
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) |
| = | ((1334.587 + 1549.62) / 3944.866) | / | ((1320.435 + 1246.457) / 4040.152) |
| = | 0.731129 | / | 0.635345 |
| | = | 1.1508 |
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 |
| = | (-802.142 - -57.767 | - | -1.751) | / | 3944.866 |
| | = | -0.188251 |
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.
DraftKings has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.
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