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Dick's Sporting Goods Inc (NYSE:DKS)
Beneish M-Score
-2.76 (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 -2.76 suggests that the company is not a manipulator.

DKS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73   Max: -0.17
Current: -2.76

-3.73
-0.17

During the past 13 years, the highest Beneish M-Score of Dick's Sporting Goods Inc was -0.17. The lowest was -3.73. And the median was -2.57.


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 * 1.0064+0.528 * 1.0008+0.404 * 0.9038+0.892 * 1.0892+0.115 * 1.0398
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9963+4.679 * -0.0679-0.327 * 1.0311
=-2.76

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $96 Mil.
Revenue was 1642.627 + 1822.979 + 1565.308 + 2160.006 = $7,191 Mil.
Gross Profit was 488.376 + 553.558 + 468.988 + 691.256 = $2,202 Mil.
Total Current Assets was $2,332 Mil.
Total Assets was $4,058 Mil.
Property, Plant and Equipment(Net PPE) was $1,341 Mil.
Depreciation, Depletion and Amortization(DDA) was $185 Mil.
Selling, General & Admin. Expense(SGA) was $1,624 Mil.
Total Current Liabilities was $1,421 Mil.
Long-Term Debt was $348 Mil.
Net Income was 47.215 + 90.839 + 63.345 + 155.536 = $357 Mil.
Non Operating Income was 1.185 + -0.153 + 2.15 + 10.033 = $13 Mil.
Cash Flow from Operations was -87.17 + 167.531 + 35.508 + 503.221 = $619 Mil.
Accounts Receivable was $88 Mil.
Revenue was 1526.675 + 1688.89 + 1438.908 + 1947.418 = $6,602 Mil.
Gross Profit was 451.972 + 502.556 + 440.883 + 628.067 = $2,023 Mil.
Total Current Assets was $2,076 Mil.
Total Assets was $3,656 Mil.
Property, Plant and Equipment(Net PPE) was $1,195 Mil.
Depreciation, Depletion and Amortization(DDA) was $172 Mil.
Selling, General & Admin. Expense(SGA) was $1,497 Mil.
Total Current Liabilities was $1,259 Mil.
Long-Term Debt was $287 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)
=(96.406 / 7190.92) / (87.944 / 6601.891)
=0.01340663 / 0.01332103
=1.0064

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)
=(553.558 / 6601.891) / (488.376 / 7190.92)
=0.30649976 / 0.30624426
=1.0008

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 - (2331.573 + 1341.166) / 4058.427) / (1 - (2075.865 + 1195.274) / 3655.532)
=0.09503386 / 0.10515378
=0.9038

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
=7190.92 / 6601.891
=1.0892

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))
=(172.491 / (172.491 + 1195.274)) / (185.114 / (185.114 + 1341.166))
=0.12611158 / 0.12128443
=1.0398

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)
=(1624.298 / 7190.92) / (1496.851 / 6601.891)
=0.22588181 / 0.22673064
=0.9963

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)
=((347.877 + 1421.193) / 4058.427) / ((286.608 + 1258.779) / 3655.532)
=0.43590041 / 0.42275297
=1.0311

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
=(356.935 - 13.215 - 619.09) / 4058.427
=-0.0679

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 -2.76 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

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 1.4571.32211.64881.34491.11190.99371.20450.87460.95561.0064
GMI 0.98210.9951.00611.00841.02251.02351.02181.0251.00711.0008
AQI 1.03360.83830.76350.72810.77770.91890.93170.96020.93990.9038
SGI 1.08581.0761.06461.07311.08251.08741.09681.09851.09251.0892
DEPI 0.95041.00861.03681.00581.0290.98260.96330.97631.05641.0398
SGAI 1.02541.01411.00630.99731.00060.99770.99311.00570.98650.9963
LVGI 1.00761.0960.94070.97561.0241.09550.99631.03351.00121.0311
TATA -0.01940.0057-0.0256-0.0486-0.071-0.0663-0.0802-0.0859-0.0842-0.0679
M-score -2.08-2.19-2.02-2.42-2.72-2.77-2.60-2.93-2.84-2.76
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