Dynatrace Holdings Llc Stock Beneish M Score

DT Stock  USD 56.19  0.73  1.32%   
This module uses fundamental data of Dynatrace Holdings to approximate the value of its Beneish M Score. Dynatrace Holdings 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 Dynatrace Holdings Piotroski F Score and Dynatrace Holdings Altman Z Score analysis.
  
At this time, Dynatrace Holdings' Debt To Equity is comparatively stable compared to the past year. Debt Equity Ratio is likely to gain to 0.01 in 2024, whereas Short and Long Term Debt is likely to drop slightly above 10.4 M in 2024. At this time, Dynatrace Holdings' Free Cash Flow Per Share is comparatively stable compared to the past year. ROIC is likely to gain to 0.07 in 2024, whereas Days Of Inventory On Hand is likely to drop 87.37 in 2024.
At this time, it appears that Dynatrace Holdings LLC is an unlikely manipulator. The earnings manipulation may begin if Dynatrace Holdings' 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 Dynatrace Holdings 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 Dynatrace Holdings' 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.
-2.38
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.82

Focus
Asset Quality

0.7

Focus
Expense Coverage

1.24

Focus
Gross Margin Strengs

0.78

Focus
Accruals Factor

1.24

Focus
Depreciation Resistance

0.85

Focus
Net Sales Growth

0.58

Focus
Financial Leverage Condition

0.61

Focus

Dynatrace Holdings 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 Dynatrace Holdings' 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 Receivables644.3 M613.6 M
Sufficiently Up
Slightly volatile
Total Revenue825.4 M1.4 B
Way Down
Slightly volatile
Total Assets2.6 B3.4 B
Way Down
Slightly volatile
Total Current Assets1.7 B1.6 B
Sufficiently Up
Slightly volatile
Property Plant Equipment43.7 M61.6 M
Way Down
Slightly volatile
Depreciation And Amortization54 M54.9 M
Fairly Down
Slightly volatile
Selling General Administrative125.2 M174.4 M
Way Down
Slightly volatile
Total Current Liabilities923.7 M1.3 B
Way Down
Slightly volatile
Gross Profit Margin0.620.7982
Significantly Down
Very volatile

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

About Dynatrace Holdings 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.

Current Deferred Revenue

604.64 Million

At this time, Dynatrace Holdings' Current Deferred Revenue is comparatively stable compared to the past year.

Dynatrace Holdings 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 Dynatrace Holdings. 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 Receivables157.1M242.1M350.7M442.5M613.6M644.3M
Total Revenue545.8M703.5M929.4M1.2B1.4B825.4M
Total Assets2.0B2.3B2.5B2.8B3.4B2.6B
Total Current Assets466.4M680.3M948.4M1.1B1.6B1.7B
Net Debt296.8M114.6M(124.2M)(480.2M)(709.5M)(674.0M)
Operating Income(170.8M)91.9M81.3M92.8M128.4M134.8M
Investments(20.6M)(13.9M)(30.9M)(21.5M)(193.0M)(183.4M)

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

About Dynatrace Holdings Fundamental Analysis

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

When running Dynatrace Holdings' price analysis, check to measure Dynatrace Holdings' 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 Dynatrace Holdings is operating at the current time. Most of Dynatrace Holdings' value examination focuses on studying past and present price action to predict the probability of Dynatrace Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dynatrace Holdings' price. Additionally, you may evaluate how the addition of Dynatrace Holdings to your portfolios can decrease your overall portfolio volatility.