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Dick's Sporting Goods Inc (NYSE:DKS)
Beneish M-Score
-2.59 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Dick's Sporting Goods Inc has a M-score of -2.59 suggests that the company is not a manipulator.

DKS' s 10-Year Beneish M-Score Range
Min: -3.38   Max: -0.17
Current: -2.59

-3.38
-0.17

During the past 13 years, the highest Beneish M-Score of Dick's Sporting Goods Inc was -0.17. The lowest was -3.38. And the median was -2.61.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Dick's Sporting Goods Inc 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 * 1.2045+0.528 * 1.0218+0.404 * 0.9317+0.892 * 1.0968+0.115 * 0.9633
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9931+4.679 * -0.0777-0.327 * 0.9963
=-2.59

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $80 Mil.
Revenue was 2160.006 + 1526.675 + 1688.89 + 1438.908 = $6,814 Mil.
Gross Profit was 691.256 + 451.972 + 502.556 + 440.883 = $2,087 Mil.
Total Current Assets was $1,850 Mil.
Total Assets was $3,436 Mil.
Property, Plant and Equipment(Net PPE) was $1,203 Mil.
Depreciation, Depletion and Amortization(DDA) was $179 Mil.
Selling, General & Admin. Expense(SGA) was $1,533 Mil.
Total Current Liabilities was $1,119 Mil.
Long-Term Debt was $6 Mil.
Net Income was 155.536 + 49.211 + 69.467 + 69.984 = $344 Mil.
Non Operating Income was 0.307 + 0.486 + 2.013 + 2.364 = $5 Mil.
Cash Flow from Operations was 503.221 + -49.462 + 138.295 + 13.924 = $606 Mil.
Accounts Receivable was $61 Mil.
Revenue was 1947.418 + 1400.623 + 1531.431 + 1333.701 = $6,213 Mil.
Gross Profit was 628.067 + 424.899 + 479.33 + 411.654 = $1,944 Mil.
Total Current Assets was $1,620 Mil.
Total Assets was $3,071 Mil.
Property, Plant and Equipment(Net PPE) was $1,085 Mil.
Depreciation, Depletion and Amortization(DDA) was $155 Mil.
Selling, General & Admin. Expense(SGA) was $1,407 Mil.
Total Current Liabilities was $1,003 Mil.
Long-Term Debt was $6 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(80.292 / 6814.479) / (60.779 / 6213.173)
=0.01178256 / 0.00978228
=1.2045

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)
=(451.972 / 6213.173) / (691.256 / 6814.479)
=0.31287556 / 0.30621079
=1.0218

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1850.384 + 1203.382) / 3436.198) / (1 - (1620.071 + 1084.529) / 3071.487)
=0.1112951 / 0.11944931
=0.9317

4. SGI = Sales Growth Index

Ratio of sales 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
=6814.479 / 6213.173
=1.0968

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(154.928 / (154.928 + 1084.529)) / (179.431 / (179.431 + 1203.382))
=0.12499667 / 0.12975796
=0.9633

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(1532.607 / 6814.479) / (1407.138 / 6213.173)
=0.2249045 / 0.22647655
=0.9931

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((5.913 + 1118.833) / 3436.198) / ((6.476 + 1002.587) / 3071.487)
=0.32732281 / 0.32852589
=0.9963

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
=(344.198 - 5.17 - 605.978) / 3436.198
=-0.0777

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Dick's Sporting Goods Inc has a M-score of -2.59 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Dick's Sporting Goods Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 0.77091.13921.25190.87730.57380.89421.02450.80651.64881.2045
GMI 0.98950.97590.96681.03881.03960.92710.9720.97211.00611.0218
AQI 0.94480.82761.47520.86960.91620.83480.87111.33930.76350.9317
SGI 1.24441.18641.24861.06221.06841.10391.06991.11981.06461.0968
DEPI 0.80241.0640.9210.86421.04140.95281.06521.00551.03680.9633
SGAI 1.00091.0391.01890.99990.97241.05220.95361.00871.00630.9931
LVGI 0.88240.8910.94690.87361.0310.91190.95940.95670.94070.9963
TATA -0.082-0.0111-0.0474-0.103-0.1194-0.0809-0.0535-0.0415-0.0256-0.0777
M-score -2.87-2.28-2.07-3.03-3.38-2.95-2.68-2.61-2.02-2.59

Dick's Sporting Goods Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 0.81660.80651.00151.4571.32211.64881.34491.11190.99371.2045
GMI 0.97730.97210.97930.98210.9951.00611.00841.02251.02351.0218
AQI 1.2431.33931.14831.03360.83830.76350.72810.77770.91890.9317
SGI 1.10221.11981.09451.08581.0761.06461.07311.08251.08741.0968
DEPI 1.05931.00551.00280.95041.00861.03681.00581.0290.98260.9633
SGAI 0.98211.00871.01521.02541.01411.00630.99731.00060.99770.9931
LVGI 0.90630.95670.93611.00761.0960.94070.97561.0241.09550.9963
TATA -0.0512-0.0415-0.02-0.01940.0057-0.0256-0.0486-0.071-0.0666-0.0777
M-score -2.67-2.61-2.42-2.08-2.19-2.02-2.42-2.72-2.77-2.59
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