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Duck Creek Technologies Beneish M-Score

: -2.45 (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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DCT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.76   Med: -2.39   Max: -2.14
Current: -2.45

During the past 5 years, the highest Beneish M-Score of Duck Creek Technologies was -2.14. The lowest was -2.76. And the median was -2.39.


Duck Creek Technologies Beneish M-Score Historical Data

The historical data trend for Duck Creek Technologies'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.

Duck Creek Technologies Annual Data
Trend Aug17 Aug18 Aug19 Aug20 Aug21
Beneish M-Score
- - - -2.76 -2.33

Duck Creek Technologies Quarterly Data
Aug17 Aug18 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
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 -2.56 -2.33 -2.14 -2.23 -2.45

Competitive Comparison

For the Software - Application subindustry, Duck Creek Technologies'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.

   

Duck Creek Technologies Beneish M-Score Distribution

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

* The bar in red indicates where Duck Creek Technologies's Beneish M-Score falls into.



Duck Creek Technologies 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 Duck Creek Technologies 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 * 0.8714+0.528 * 0.9693+0.404 * 0.9836+0.892 * 1.1825+0.115 * 0.9649
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8551+4.679 * -0.0129-0.327 * 0.84
=-2.45

* 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 (May22) TTM:Last Year (May21) TTM:
Total Receivables was $61.5 Mil.
Revenue was 72.364 + 76.418 + 73.421 + 70.854 = $293.1 Mil.
Gross Profit was 40.295 + 44.329 + 42.47 + 41.09 = $168.2 Mil.
Total Current Assets was $439.9 Mil.
Total Assets was $816.7 Mil.
Property, Plant and Equipment(Net PPE) was $28.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.9 Mil.
Selling, General, & Admin. Expense(SGA) was $121.5 Mil.
Total Current Liabilities was $63.3 Mil.
Long-Term Debt & Capital Lease Obligation was $17.9 Mil.
Net Income was -5.764 + -0.879 + 0.692 + -5.559 = $-11.5 Mil.
Non Operating Income was -0.913 + -0.032 + -0.763 + -1.162 = $-2.9 Mil.
Cash Flow from Operations was 17.406 + 1.577 + -24.603 + 7.532 = $1.9 Mil.
Total Receivables was $59.7 Mil.
Revenue was 67.938 + 62.652 + 58.906 + 58.322 = $247.8 Mil.
Gross Profit was 40.188 + 35.11 + 33.876 + 28.679 = $137.9 Mil.
Total Current Assets was $443.2 Mil.
Total Assets was $838.0 Mil.
Property, Plant and Equipment(Net PPE) was $31.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.7 Mil.
Selling, General, & Admin. Expense(SGA) was $120.2 Mil.
Total Current Liabilities was $80.8 Mil.
Long-Term Debt & Capital Lease Obligation was $18.3 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)
=(61.485 / 293.057) / (59.668 / 247.818)
=0.2098056 / 0.24077347
=0.8714

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)
=(137.853 / 247.818) / (168.184 / 293.057)
=0.5562671 / 0.57389518
=0.9693

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 - (439.873 + 28.523) / 816.698) / (1 - (443.171 + 31.506) / 838.038)
=0.42647588 / 0.43358535
=0.9836

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
=293.057 / 247.818
=1.1825

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))
=(21.703 / (21.703 + 31.506)) / (20.887 / (20.887 + 28.523))
=0.40788213 / 0.42272819
=0.9649

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)
=(121.515 / 293.057) / (120.175 / 247.818)
=0.4146463 / 0.48493249
=0.8551

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)
=((17.852 + 63.312) / 816.698) / ((18.342 + 80.806) / 838.038)
=0.09938068 / 0.11830967
=0.84

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
=(-11.51 - -2.87 - 1.912) / 816.698
=-0.0129

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.

Duck Creek Technologies has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.


Duck Creek Technologies Beneish M-Score Related Terms

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Duck Creek Technologies Business Description

Duck Creek Technologies logo
Traded in Other Exchanges
N/A
Address
22 Boston Wharf Road, Floor 10, Boston, MA, USA, 02210
Duck Creek Technologies Inc is a technology company. The company is one of the leading SaaS provider of core systems for the P&C insurance industry. The product portfolio includes distribution management, reinsurance management, digital management, and other services. Geographically, it derives a majority of revenue from the United States.
Executives
Keeney Jessica Kate officer: Chief Product Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD BOSTON MA 02210
Rhodes Kevin R officer: Chief Financial Officer 20 HARVARD MILLS SQUARE WAKEFIELD MA 01880
Bloom William A director ONE TOWER SQUARE HARTFORD CT 06183
Winter Jeffrey Howard officer: Chief Marketing Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Vaidyanathan Nageswaran officer: Chief Technology Officer C/O DUCK CREEK TECHNOLOGIES INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Townsend Courtney officer: Chief People Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD BOSTON MA 02210
Dodd Julie director C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Foster Matthew R. officer: Chief Operating Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Disco (guernsey) Gp Co. Ltd director BOX 656, EAST WING, TRAFALGAR COURT LES BANQUES, ST PETER PORT Y7 GY1 3PP
Nicoll Stuart director C/O ACCENTURE, 161 N. CLARK STREET CHICAGO IL 60601
Fitzgerald Scott officer: Chief Marketing Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Dey Anirban officer: Chief Product & Technology Ofc C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Jackowski Michael A. director, officer: Chief Executive Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Van Biert Eugene Jr. officer: Chief Revenue Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Wilson George Larry director C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210

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