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Dick's Sporting Goods Inc (NYSE:DKS)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

DKS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73   Max: -0.19
Current: -2.58

-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 -2.58.


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 * 1.2747+0.528 * 1.0203+0.404 * 0.9954+0.892 * 1.0616+0.115 * 1.0243
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0286+4.679 * -0.0854-0.327 * 1.0436
=-2.58

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

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $144 Mil.
Revenue was 1967.857 + 1660.343 + 2240.051 + 1642.627 = $7,511 Mil.
Gross Profit was 597.378 + 495.797 + 671.966 + 488.376 = $2,254 Mil.
Total Current Assets was $2,085 Mil.
Total Assets was $3,988 Mil.
Property, Plant and Equipment(Net PPE) was $1,476 Mil.
Depreciation, Depletion and Amortization(DDA) was $200 Mil.
Selling, General & Admin. Expense(SGA) was $1,731 Mil.
Total Current Liabilities was $1,316 Mil.
Long-Term Debt was $157 Mil.
Net Income was 91.417 + 56.877 + 128.992 + 47.215 = $325 Mil.
Non Operating Income was 1.93 + 2.067 + -1.117 + -1.185 = $2 Mil.
Cash Flow from Operations was 223.064 + -0.135 + 527.645 + -87.17 = $663 Mil.
Accounts Receivable was $107 Mil.
Revenue was 1822.979 + 1565.308 + 2160.006 + 1526.675 = $7,075 Mil.
Gross Profit was 553.558 + 468.988 + 691.256 + 451.972 = $2,166 Mil.
Total Current Assets was $1,950 Mil.
Total Assets was $3,639 Mil.
Property, Plant and Equipment(Net PPE) was $1,297 Mil.
Depreciation, Depletion and Amortization(DDA) was $180 Mil.
Selling, General & Admin. Expense(SGA) was $1,585 Mil.
Total Current Liabilities was $1,282 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)
=(144.458 / 7510.878) / (106.753 / 7074.968)
=0.01923317 / 0.01508883
=1.2747

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)
=(2165.774 / 7074.968) / (2253.517 / 7510.878)
=0.30611785 / 0.30003376
=1.0203

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 - (2084.769 + 1475.797) / 3987.666) / (1 - (1950.229 + 1297.302) / 3639.091)
=0.10710526 / 0.1075983
=0.9954

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
=7510.878 / 7074.968
=1.0616

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))
=(180.256 / (180.256 + 1297.302)) / (199.529 / (199.529 + 1475.797))
=0.12199589 / 0.11909861
=1.0243

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)
=(1730.762 / 7510.878) / (1585.045 / 7074.968)
=0.23043405 / 0.22403564
=1.0286

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)
=((157.013 + 1315.611) / 3987.666) / ((5.627 + 1282.093) / 3639.091)
=0.36929472 / 0.3538576
=1.0436

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
=(324.501 - 1.695 - 663.404) / 3987.666
=-0.0854

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 -2.58 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

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 -0.0177-0.053-0.103-0.1194-0.0809-0.0535-0.0415-0.0256-0.0787-0.0879
M-score -2.31-2.10-3.03-3.38-2.95-2.68-2.61-2.02-2.58-3.09

Dick's Sporting Goods Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 1.34491.11190.99371.20450.87460.95561.00640.71661.65191.2747
GMI 1.00841.02251.02351.02181.0251.00711.00081.021.01571.0203
AQI 0.72810.77770.91890.96150.98310.97260.90380.97550.92660.9954
SGI 1.07311.08251.08741.09681.09851.09251.08921.0671.06121.0616
DEPI 1.00581.0290.98260.96330.97631.05641.03981.03321.06261.0243
SGAI 0.99731.00060.99770.99311.00570.98650.99631.00761.01121.0286
LVGI 0.97561.0241.09551.00941.04561.01131.03111.01411.01311.0436
TATA -0.0486-0.071-0.0666-0.0787-0.0844-0.0826-0.0649-0.0879-0.0731-0.0854
M-score -2.42-2.72-2.77-2.58-2.91-2.83-2.74-3.09-2.19-2.58
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