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Dick's Sporting Goods Inc (NYSE:DKS)
Beneish M-Score
-2.92 (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 -2.92 suggests that the company is not a manipulator.

DKS' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -0.17
Current: -2.92

-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 -2.52.


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 * 0.8746+0.528 * 1.025+0.404 * 0.9602+0.892 * 1.0985+0.115 * 0.9763
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0057+4.679 * -0.0834-0.327 * 1.0335
=-2.92

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
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 $1,929 Mil.
Total Assets was $3,535 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.
Net Income was 63.345 + 155.536 + 49.211 + 69.467 = $338 Mil.
Non Operating Income was 2.15 + 0.307 + 0.486 + 2.013 = $5 Mil.
Cash Flow from Operations was 35.508 + 503.221 + -49.462 + 138.295 = $628 Mil.
Accounts Receivable was $66 Mil.
Revenue was 1438.908 + 1947.418 + 1400.623 + 1531.431 = $6,318 Mil.
Gross Profit was 440.883 + 628.067 + 424.899 + 479.33 = $1,973 Mil.
Total Current Assets was $1,821 Mil.
Total Assets was $3,269 Mil.
Property, Plant and Equipment(Net PPE) was $1,077 Mil.
Depreciation, Depletion and Amortization(DDA) was $159 Mil.
Selling, General & Admin. Expense(SGA) was $1,422 Mil.
Total Current Liabilities was $1,145 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)
=(63.871 / 6940.879) / (66.479 / 6318.38)
=0.00920215 / 0.01052153
=0.8746

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)
=(691.256 / 6318.38) / (468.988 / 6940.879)
=0.31229192 / 0.3046836
=1.025

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 - (1929.109 + 1220.471) / 3535.028) / (1 - (1820.902 + 1077.254) / 3269.437)
=0.10903676 / 0.11356114
=0.9602

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
=6940.879 / 6318.38
=1.0985

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))
=(158.979 / (158.979 + 1077.254)) / (185.148 / (185.148 + 1220.471))
=0.12859954 / 0.1317199
=0.9763

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)
=(1570.888 / 6940.879) / (1421.896 / 6318.38)
=0.22632407 / 0.22504123
=1.0057

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)
=((56.981 + 1229.05) / 3535.028) / ((6.356 + 1144.545) / 3269.437)
=0.36379655 / 0.3520181
=1.0335

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
=(337.559 - 4.956 - 627.562) / 3535.028
=-0.0834

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 -2.92 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

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 0.80651.00151.4571.32211.64881.34491.11190.99371.20450.8746
GMI 0.97210.97930.98210.9951.00611.00841.02251.02351.02181.025
AQI 1.33931.14831.03360.83830.76350.72810.77770.91890.93170.9602
SGI 1.11981.09451.08581.0761.06461.07311.08251.08741.09681.0985
DEPI 1.00551.00280.95041.00861.03681.00581.0290.98260.96330.9763
SGAI 1.00871.01521.02541.01411.00630.99731.00060.99770.99311.0057
LVGI 0.95670.93611.00761.0960.94070.97561.0241.09550.99631.0335
TATA -0.0415-0.02-0.01940.0057-0.0256-0.0486-0.071-0.0666-0.0777-0.0834
M-score -2.61-2.42-2.08-2.19-2.02-2.42-2.72-2.77-2.59-2.92
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