Draganfly Stock Beneish M Score

DPRO Stock  USD 1.10  0.89  423.81%   
This module uses fundamental data of Draganfly to approximate the value of its Beneish M Score. Draganfly 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 Draganfly Piotroski F Score and Draganfly Altman Z Score analysis.
To learn how to invest in Draganfly Stock, please use our How to Invest in Draganfly guide.
  
At this time, Draganfly's Short Term Debt is very stable compared to the past year. As of the 16th of June 2024, Net Debt To EBITDA is likely to grow to 0.11, while Short and Long Term Debt Total is likely to drop about 571.5 K. At this time, Draganfly's Research And Ddevelopement To Revenue is very stable compared to the past year. As of the 16th of June 2024, Net Debt To EBITDA is likely to grow to 0.11, while Price To Sales Ratio is likely to drop 3.88.
At this time, it appears that Draganfly is an unlikely manipulator. The earnings manipulation may begin if Draganfly'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 Draganfly 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 Draganfly'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.
-3.62
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.74

Focus
Asset Quality

2.42

Focus
Expense Coverage

1.1

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

1.1

Focus
Depreciation Resistance

1.41

Focus
Net Sales Growth

0.79

Focus
Financial Leverage Condition

0.28

Focus

Draganfly 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 Draganfly'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 Receivables895.9 K649.6 K
Significantly Up
Slightly volatile
Total Revenue5.2 M6.6 M
Significantly Down
Slightly volatile
Total Assets13.9 M8.3 M
Way Up
Slightly volatile
Total Current Assets9.7 M6.7 M
Way Up
Slightly volatile
Non Current Assets Total2.7 M1.6 M
Way Up
Slightly volatile
Property Plant Equipment904.9 K861.9 K
Sufficiently Up
Slightly volatile
Depreciation And Amortization343 K546.6 K
Way Down
Slightly volatile
Selling General Administrative13.6 M15.6 M
Fairly Down
Slightly volatile
Total Current Liabilities4.8 M7.4 M
Way Down
Pretty Stable
Short Term Debt393.4 K367.1 K
Notably Up
Slightly volatile
Long Term Debt4.3 K4.6 K
Notably Down
Pretty Stable
Short Term Investments274.1 K361.6 K
Way Down
Slightly volatile
Gross Profit Margin0.220.2315
Notably Down
Slightly volatile

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

About Draganfly 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.

Depreciation And Amortization

342,976

At this time, Draganfly's Depreciation And Amortization is very stable compared to the past year.

Draganfly 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 Draganfly. 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 Receivables224.7K810.8K1.6M2.3M649.6K895.9K
Total Revenue1.4M4.4M7.1M7.6M6.6M5.2M
Total Assets3.2M7.1M42.1M14.6M8.3M13.9M
Total Current Assets3.0M4.4M33.6M13.5M6.7M9.7M
Net Debt(2.3M)(1.7M)(22.5M)(7.4M)(2.3M)(2.4M)
Short Term Debt43K156.2K117.2K215.5K367.1K393.4K
Operating Income(3.3M)(7.1M)(22.3M)(26.2M)(22.7M)(21.6M)
Gross Profit Margin0.840.40.370.10.230.22

About Draganfly Fundamental Analysis

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

When determining whether Draganfly offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Draganfly'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 Draganfly Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Draganfly Stock:
Check out Draganfly Piotroski F Score and Draganfly Altman Z Score analysis.
To learn how to invest in Draganfly Stock, please use our How to Invest in Draganfly guide.
You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Is Industrial Machinery & Supplies & Components 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 Draganfly. If investors know Draganfly 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 Draganfly listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.28)
Revenue Per Share
0.133
Quarterly Revenue Growth
(0.17)
Return On Assets
(0.80)
Return On Equity
(2.12)
The market value of Draganfly is measured differently than its book value, which is the value of Draganfly that is recorded on the company's balance sheet. Investors also form their own opinion of Draganfly's value that differs from its market value or its book value, called intrinsic value, which is Draganfly'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 Draganfly's market value can be influenced by many factors that don't directly affect Draganfly'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 Draganfly's value and its price as these two are different measures arrived at by different means. Investors typically determine if Draganfly is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Draganfly'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.