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GuruFocus has detected 6 Warning Signs with Radiant Logistics Inc $RLGT.
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Radiant Logistics Inc (AMEX:RLGT)
Beneish M-Score
-2.74 (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.

Radiant Logistics Inc has a M-score of -2.74 suggests that the company is not a manipulator.

RLGT' s Beneish M-Score Range Over the Past 10 Years
Min: -7.6   Max: 434.63
Current: -2.74

-7.6
434.63

During the past 12 years, the highest Beneish M-Score of Radiant Logistics Inc was 434.63. The lowest was -7.60. And the median was -2.31.


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 Radiant Logistics 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 * 1.0046+0.528 * 0.9348+0.404 * 1.0284+0.892 * 1.0425+0.115 * 0.8975
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0472+4.679 * -0.0585-0.327 * 0.9471
=-2.74

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was USD 113.1 Mil.
Revenue was 198.881 + 195.133 + 183.616 + 173.276 = USD 750.9 Mil.
Gross Profit was 50.124 + 49.009 + 46.55 + 41.801 = USD 187.5 Mil.
Total Current Assets was USD 124.7 Mil.
Total Assets was USD 270.9 Mil.
Property, Plant and Equipment(Net PPE) was USD 12.7 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 11.8 Mil.
Selling, General & Admin. Expense(SGA) was USD 165.4 Mil.
Total Current Liabilities was USD 105.9 Mil.
Long-Term Debt was USD 26.1 Mil.
Net Income was 2.61 + 1.862 + -0.123 + -1.719 = USD 2.6 Mil.
Non Operating Income was 0.304 + 0.395 + -0.622 + -0.095 = USD -0.0 Mil.
Cash Flow from Operations was 9.256 + 3.48 + 2.245 + 3.506 = USD 18.5 Mil.
Accounts Receivable was USD 108.0 Mil.
Revenue was 206.322 + 215.495 + 196.234 + 102.252 = USD 720.3 Mil.
Gross Profit was 47.596 + 50.713 + 42.701 + 27.105 = USD 168.1 Mil.
Total Current Assets was USD 140.4 Mil.
Total Assets was USD 295.1 Mil.
Property, Plant and Equipment(Net PPE) was USD 13.3 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 10.2 Mil.
Selling, General & Admin. Expense(SGA) was USD 151.5 Mil.
Total Current Liabilities was USD 103.1 Mil.
Long-Term Debt was USD 48.7 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)
=(113.085 / 750.906) / (107.978 / 720.303)
=0.15059808 / 0.14990636
=1.0046

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)
=(168.115 / 720.303) / (187.484 / 750.906)
=0.23339484 / 0.24967706
=0.9348

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 - (124.716 + 12.653) / 270.87) / (1 - (140.356 + 13.313) / 295.1)
=0.49286004 / 0.47926466
=1.0284

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
=750.906 / 720.303
=1.0425

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))
=(10.204 / (10.204 + 13.313)) / (11.843 / (11.843 + 12.653))
=0.43389888 / 0.48346669
=0.8975

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)
=(165.411 / 750.906) / (151.519 / 720.303)
=0.2202819 / 0.21035453
=1.0472

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)
=((26.058 + 105.893) / 270.87) / ((48.708 + 103.076) / 295.1)
=0.48713774 / 0.51434768
=0.9471

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
=(2.63 - -0.018 - 18.487) / 270.87
=-0.0585

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.

Radiant Logistics Inc has a M-score of -2.74 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 local exchange's currency.

Radiant Logistics Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 0.72080.87721.1591.39580.85730.9591.11121.35940.5097
GMI 984.48830.00111.06951.01421.07521.00251.00091.15481.0318
AQI 1.12810.44380.76751.44381.80770.94611.22631.30481.0684
SGI 1.32671.36721.0711.38921.45721.04661.12321.43981.5567
DEPI 0.87870.8161.07981.33930.7470.85510.96392.40170.6624
SGAI 1.01550.89040.92890.97010.95560.97890.96080.8920.9878
LVGI 0.91211.60410.94490.9090.90.96090.71621.19960.7367
TATA 0.0107-0.5497-0.0597-0.0026-0.02350.0005-0.00630.0149-0.0942
M-score 516.95-5.79-2.57-1.52-1.94-2.49-2.11-1.37-2.78

Radiant Logistics Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.07921.00990.97271.35941.17890.92770.78870.51210.7441.0046
GMI 1.05011.08981.08381.15481.15561.15311.15241.02680.97960.9348
AQI 1.3340.98740.90991.30481.25291.23991.28261.06841.02491.0284
SGI 1.20191.24851.24751.43971.67251.83531.93631.54921.22331.0425
DEPI 0.99581.11321.23692.40181.95641.52851.26250.66240.7780.8975
SGAI 0.9220.93160.94360.89210.89950.88540.88190.99261.01521.0472
LVGI 0.70051.01151.09541.19960.96740.92690.91350.73670.96860.9471
TATA -0.00260.03080.00660.01490.0004-0.0387-0.0556-0.0942-0.0799-0.0585
M-score -1.97-2.04-2.24-1.37-1.39-1.70-1.83-2.79-2.91-2.74
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