Dayforce Stock Beneish M Score

DAY Stock   77.17  0.36  0.46%   
This module uses fundamental data of Dayforce to approximate the value of its Beneish M Score. Dayforce M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Dayforce Piotroski F Score and Dayforce Altman Z Score analysis.
For more information on how to buy Dayforce Stock please use our How to Invest in Dayforce guide.
  
At this time, Dayforce's Net Debt is fairly stable compared to the past year. Short Term Debt is likely to rise to about 18.4 M in 2024, whereas Long Term Debt is likely to drop slightly above 1.1 B in 2024. At this time, Dayforce's Days Payables Outstanding is fairly stable compared to the past year. Income Quality is likely to rise to 4.21 in 2024, whereas Price To Sales Ratio is likely to drop 6.63 in 2024.
At this time, it appears that Dayforce is an unlikely manipulator. The earnings manipulation may begin if Dayforce's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Dayforce executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Dayforce's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.1
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.82

Focus
Asset Quality

1.14

Focus
Expense Coverage

1.25

Focus
Gross Margin Strengs

0.75

Focus
Accruals Factor

1.25

Focus
Depreciation Resistance

1.12

Focus
Net Sales Growth

0.67

Focus
Financial Leverage Condition

1.01

Focus

Dayforce Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Dayforce's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables125.1 M228.8 M
Way Down
Slightly volatile
Total RevenueB1.5 B
Way Down
Slightly volatile
Total Assets7.6 BB
Fairly Down
Slightly volatile
Total Current Assets4.7 BB
Significantly Down
Very volatile
Non Current Assets Total2.9 B3.1 B
Notably Down
Slightly volatile
Property Plant Equipment138.7 M201.1 M
Way Down
Slightly volatile
Depreciation And Amortization76.5 M132.5 M
Way Down
Slightly volatile
Selling General Administrative218.6 M263.2 M
Significantly Down
Pretty Stable
Total Current Liabilities4.4 B5.3 B
Significantly Down
Pretty Stable
Non Current Liabilities Total897.4 M1.3 B
Way Down
Pretty Stable
Short Term Debt18.4 M14.6 M
Significantly Up
Pretty Stable
Long Term Debt1.1 B1.2 B
Moderately Down
Pretty Stable
Short Term Investments2.7 B2.9 B
Notably Down
Slightly volatile
Gross Profit Margin0.320.4271
Way Down
Slightly volatile

Dayforce Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Dayforce's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Dayforce in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Dayforce's degree of accounting gimmicks and manipulations.

About Dayforce Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

975.37 Million

At this time, Dayforce's Other Operating Expenses is fairly stable compared to the past year.

Dayforce Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Dayforce. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables80.4M101.1M146.3M180.1M228.8M125.1M
Total Revenue824.1M842.5M1.0B1.2B1.5B1.0B
Total Assets6.1B6.7B7.2B7.9B9.0B7.6B
Total Current Assets3.6B4.1B4.1B4.9B6.0B4.7B
Net Debt434.7M523.7M809.2M823M673.3M694.7M
Short Term Debt6.8M19.6M17.7M17.8M14.6M18.4M
Long Term Debt666.3M660.6M1.1B1.2B1.2B1.1B
Operating Income72.3M5.1M(54.4M)(34.3M)133.1M139.8M
Investments(33.9M)156.9M(711.1M)(342.5M)(62.4M)(59.3M)
Gross Profit Margin0.430.450.410.370.380.32

Dayforce ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Dayforce's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Dayforce's managers, analysts, and investors.
Environmental
Governance
Social

About Dayforce Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Dayforce's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Dayforce using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Dayforce based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When running Dayforce's price analysis, check to measure Dayforce's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dayforce is operating at the current time. Most of Dayforce's value examination focuses on studying past and present price action to predict the probability of Dayforce's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dayforce's price. Additionally, you may evaluate how the addition of Dayforce to your portfolios can decrease your overall portfolio volatility.