Doubledown Interactive Co Stock Beneish M Score

DDI Stock  USD 11.79  0.71  5.68%   
This module uses fundamental data of Doubledown Interactive to approximate the value of its Beneish M Score. Doubledown Interactive 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 Doubledown Interactive Piotroski F Score and Doubledown Interactive Altman Z Score analysis.
  
As of now, Doubledown Interactive's Short and Long Term Debt is decreasing as compared to previous years. The Doubledown Interactive's current Long Term Debt To Capitalization is estimated to increase to 0.93, while Short and Long Term Debt Total is projected to decrease to under 44 M. As of now, Doubledown Interactive's ROIC is increasing as compared to previous years. The Doubledown Interactive's current Inventory Turnover is estimated to increase to 91.82, while PTB Ratio is projected to decrease to 0.48.
At this time, it appears that Doubledown Interactive is an unlikely manipulator. The earnings manipulation may begin if Doubledown Interactive'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 Doubledown Interactive 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 Doubledown Interactive'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.
-2.27
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.68

Focus
Asset Quality

1.25

Focus
Expense Coverage

0.9

Focus
Gross Margin Strengs

0.6

Focus
Accruals Factor

0.9

Focus
Depreciation Resistance

1.47

Focus
Net Sales Growth

1.12

Focus
Financial Leverage Condition

0.91

Focus

Doubledown Interactive 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 Doubledown Interactive'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 Receivables24.7 M32.4 M
Way Down
Slightly volatile
Total Revenue346.9 M308.9 M
Moderately Up
Slightly volatile
Total Assets918.1 M803.3 M
Fairly Up
Slightly volatile
Total Current Assets202.8 M316.4 M
Way Down
Slightly volatile
Non Current Assets Total525.2 M524.6 M
Slightly Up
Slightly volatile
Property Plant Equipment6.9 M3.9 M
Way Up
Slightly volatile
Depreciation And Amortization3.3 M3.5 M
Notably Down
Slightly volatile
Selling General Administrative22.3 M22.1 M
Slightly Up
Slightly volatile
Total Current Liabilities56.6 M68.5 M
Significantly Down
Slightly volatile
Non Current Liabilities Total6.6 M6.9 M
Notably Down
Slightly volatile
Short Term Debt28.2 M41.9 M
Way Down
Slightly volatile
Long Term Debt33.7 M35.5 M
Notably Down
Slightly volatile
Operating Income98.6 M124.3 M
Significantly Down
Slightly volatile
Total Cash From Operating Activities19.8 M20.8 M
Notably Down
Slightly volatile
Short Term Investments45 M67.8 M
Way Down
Slightly volatile
Gross Profit Margin0.550.916
Way Down
Slightly volatile

Doubledown Interactive 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 Doubledown Interactive's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Doubledown Interactive in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Doubledown Interactive's degree of accounting gimmicks and manipulations.

About Doubledown Interactive 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

181.52 Million

As of now, Doubledown Interactive's Other Operating Expenses is increasing as compared to previous years.

Doubledown Interactive 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 Doubledown Interactive. 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 Receivables19.8M23.3M21.9M21.2M32.4M24.7M
Total Revenue273.6M358.3M363.2M321.0M308.9M346.9M
Total Assets815.4M806.8M969.9M792.1M803.3M918.1M
Total Current Assets65.9M90.5M270.8M312.9M316.4M202.8M
Net Debt347.9M(6.4M)(192.1M)(173.2M)(160.6M)(152.5M)
Short Term Debt37.3M3.0M3.1M3.1M41.9M28.2M
Long Term Debt342.5M46.0M42.2M39.5M35.5M33.7M
Operating Income68.3M88.8M98.7M102.6M124.3M98.6M
Investments(200K)(2.2M)(1.5M)(67.8M)(40.6M)(38.6M)

Doubledown Interactive 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, Doubledown Interactive's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Doubledown Interactive's managers, analysts, and investors.
Environmental
Governance
Social

About Doubledown Interactive Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Doubledown Interactive Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Doubledown Interactive using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Doubledown Interactive Co 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.

Currently Active Assets on Macroaxis

When determining whether Doubledown Interactive offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Doubledown Interactive's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Doubledown Interactive Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Doubledown Interactive Co Stock:
Check out Doubledown Interactive Piotroski F Score and Doubledown Interactive Altman Z Score analysis.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Doubledown Interactive. If investors know Doubledown will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Doubledown Interactive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.07)
Earnings Share
2.31
Revenue Per Share
6.911
Quarterly Revenue Growth
0.137
Return On Assets
0.1052
The market value of Doubledown Interactive is measured differently than its book value, which is the value of Doubledown that is recorded on the company's balance sheet. Investors also form their own opinion of Doubledown Interactive's value that differs from its market value or its book value, called intrinsic value, which is Doubledown Interactive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Doubledown Interactive's market value can be influenced by many factors that don't directly affect Doubledown Interactive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Doubledown Interactive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Doubledown Interactive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Doubledown Interactive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.