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Dick's Sporting Goods Inc (NYSE:DKS)
Beneish M-Score
-2.19 (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 -2.19 signals that the company is a manipulator.

DKS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73   Max: -0.19
Current: -2.19

-3.73
-0.19

During the past 13 years, the highest Beneish M-Score of Dick's Sporting Goods Inc was -0.19. 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 * 1.6519+0.528 * 1.0157+0.404 * 0.9266+0.892 * 1.0612+0.115 * 1.0626
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0112+4.679 * -0.0731-0.327 * 1.0131
=-2.19

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $112 Mil.
Revenue was 1660.343 + 2240.051 + 1642.627 + 1822.979 = $7,366 Mil.
Gross Profit was 495.797 + 671.966 + 488.376 + 553.558 = $2,210 Mil.
Total Current Assets was $2,071 Mil.
Total Assets was $3,878 Mil.
Property, Plant and Equipment(Net PPE) was $1,406 Mil.
Depreciation, Depletion and Amortization(DDA) was $199 Mil.
Selling, General & Admin. Expense(SGA) was $1,686 Mil.
Total Current Liabilities was $1,283 Mil.
Long-Term Debt was $163 Mil.
Net Income was 56.877 + 128.992 + 47.215 + 90.839 = $324 Mil.
Non Operating Income was 2.067 + -1.117 + -1.185 + -0.153 = $-0 Mil.
Cash Flow from Operations was -0.135 + 527.645 + -87.17 + 167.531 = $608 Mil.
Accounts Receivable was $64 Mil.
Revenue was 1565.308 + 2160.006 + 1526.675 + 1688.89 = $6,941 Mil.
Gross Profit was 468.988 + 691.256 + 451.972 + 502.556 = $2,115 Mil.
Total Current Assets was $1,884 Mil.
Total Assets was $3,494 Mil.
Property, Plant and Equipment(Net PPE) was $1,220 Mil.
Depreciation, Depletion and Amortization(DDA) was $185 Mil.
Selling, General & Admin. Expense(SGA) was $1,571 Mil.
Total Current Liabilities was $1,229 Mil.
Long-Term Debt was $57 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)
=(111.973 / 7366) / (63.871 / 6940.879)
=0.01520133 / 0.00920215
=1.6519

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)
=(2114.772 / 6940.879) / (2209.697 / 7366)
=0.3046836 / 0.29998602
=1.0157

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 - (2070.678 + 1406.471) / 3878.367) / (1 - (1883.554 + 1220.471) / 3494.109)
=0.10345024 / 0.11164048
=0.9266

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
=7366 / 6940.879
=1.0612

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))
=(185.148 / (185.148 + 1220.471)) / (199.008 / (199.008 + 1406.471))
=0.1317199 / 0.12395553
=1.0626

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)
=(1685.705 / 7366) / (1570.888 / 6940.879)
=0.22884944 / 0.22632407
=1.0112

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)
=((162.78 + 1283.31) / 3878.367) / ((56.981 + 1229.05) / 3494.109)
=0.37286054 / 0.36805692
=1.0131

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
=(323.923 - -0.388 - 607.871) / 3878.367
=-0.0731

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 -2.19 signals that the company is likely to 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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 1.13921.25190.87730.57380.89421.02450.80651.64881.20450.7166
GMI 0.97590.96681.03881.03960.92710.9720.97211.00611.02181.02
AQI 0.82761.47520.86960.91620.83480.87111.33930.76350.96150.9755
SGI 1.18641.24861.06221.06841.10391.06991.11981.06461.09681.067
DEPI 1.0640.9210.86421.04140.95281.06521.00551.03680.96331.0332
SGAI 1.0391.01890.99990.97241.05220.95361.00871.00630.99311.0076
LVGI 0.8910.94690.87361.0310.91190.95940.95670.94071.00941.0141
TATA -0.0548-0.053-0.1005-0.1185-0.0809-0.0535-0.0415-0.0256-0.0787-0.0879
M-score -2.49-2.10-3.01-3.38-2.95-2.68-2.61-2.02-2.58-3.09

Dick's Sporting Goods Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 1.64881.34491.11190.99371.20450.87460.95561.00640.71661.6519
GMI 1.00611.00841.02251.02351.02181.0251.00711.00081.021.0157
AQI 0.76350.72810.77770.91890.96150.98310.93990.90380.97550.9266
SGI 1.06461.07311.08251.08741.09681.09851.09251.08921.0671.0612
DEPI 1.03681.00581.0290.98260.96330.97631.05641.03981.03321.0626
SGAI 1.00630.99731.00060.99770.99311.00570.98650.99631.00761.0112
LVGI 0.94070.97561.0241.09551.00941.04561.00121.03111.01411.0131
TATA -0.0256-0.0486-0.071-0.0666-0.0787-0.0844-0.0818-0.0649-0.0879-0.0731
M-score -2.02-2.42-2.72-2.77-2.58-2.91-2.83-2.74-3.09-2.19
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