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Radiant Logistics Inc (AMEX:RLGT)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

RLGT' s Beneish M-Score Range Over the Past 10 Years
Min: -5.91   Max: 434.63
Current: -2.78

-5.91
434.63

During the past 12 years, the highest Beneish M-Score of Radiant Logistics Inc was 434.63. The lowest was -5.91. And the median was -2.03.


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 * 0.5097+0.528 * 1.0318+0.404 * 1.0684+0.892 * 1.5567+0.115 * 0.6624
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9878+4.679 * -0.0942-0.327 * 0.7367
=-2.78

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $101.0 Mil.
Revenue was 183.616 + 173.276 + 206.951 + 218.653 = $782.5 Mil.
Gross Profit was 46.55 + 41.801 + 47.596 + 50.713 = $186.7 Mil.
Total Current Assets was $113.4 Mil.
Total Assets was $263.5 Mil.
Property, Plant and Equipment(Net PPE) was $12.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.0 Mil.
Selling, General & Admin. Expense(SGA) was $170.3 Mil.
Total Current Liabilities was $96.5 Mil.
Long-Term Debt was $28.9 Mil.
Net Income was -0.123 + -1.719 + -2.016 + 0.339 = $-3.5 Mil.
Non Operating Income was -0.622 + -0.095 + 0.242 + 0.345 = $-0.1 Mil.
Cash Flow from Operations was 2.245 + 3.493 + 11.044 + 4.64 = $21.4 Mil.
Accounts Receivable was $127.3 Mil.
Revenue was 196.234 + 102.252 + 105.948 + 98.231 = $502.7 Mil.
Gross Profit was 42.701 + 27.105 + 27.592 + 26.325 = $123.7 Mil.
Total Current Assets was $142.7 Mil.
Total Assets was $305.0 Mil.
Property, Plant and Equipment(Net PPE) was $13.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.4 Mil.
Selling, General & Admin. Expense(SGA) was $110.7 Mil.
Total Current Liabilities was $112.9 Mil.
Long-Term Debt was $84.2 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)
=(101.035 / 782.496) / (127.349 / 502.665)
=0.12911887 / 0.25334766
=0.5097

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)
=(123.723 / 502.665) / (186.66 / 782.496)
=0.24613411 / 0.23854435
=1.0318

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 - (113.373 + 12.453) / 263.469) / (1 - (142.708 + 13.176) / 305.038)
=0.52242579 / 0.48896859
=1.0684

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
=782.496 / 502.665
=1.5567

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))
=(6.359 / (6.359 + 13.176)) / (12.033 / (12.033 + 12.453))
=0.3255183 / 0.49142367
=0.6624

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)
=(170.282 / 782.496) / (110.735 / 502.665)
=0.21761389 / 0.22029582
=0.9878

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)
=((28.903 + 96.511) / 263.469) / ((84.202 + 112.886) / 305.038)
=0.47601046 / 0.64610967
=0.7367

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
=(-3.519 - -0.13 - 21.422) / 263.469
=-0.0942

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 -2.78 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.

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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.08261.11121.07921.00990.97271.35941.17290.92290.78490.5097
GMI 0.98081.00091.05011.08981.08381.15481.16151.15921.15791.0318
AQI 1.26711.22631.3340.98740.90991.30481.25291.23991.28261.0684
SGI 1.05021.12321.20191.24851.24751.43971.6811.8451.94551.5567
DEPI 0.9840.96380.99581.11321.23692.40181.95641.52851.26250.6624
SGAI 0.9730.96080.9220.93160.94360.89210.89490.88080.87770.9878
LVGI 0.66580.71620.70051.01151.09541.19960.96740.92690.91350.7367
TATA -0.0134-0.0063-0.00260.03080.00660.01490.0004-0.0388-0.0556-0.0942
M-score -2.21-2.11-1.97-2.04-2.24-1.37-1.39-1.69-1.82-2.78
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