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Radiant Logistics Inc (AMEX:RLGT)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

RLGT' s Beneish M-Score Range Over the Past 10 Years
Min: -7.6   Max: -0.75
Current: -2.91

-7.6
-0.75

During the past 12 years, the highest Beneish M-Score of Radiant Logistics Inc was -0.75. The lowest was -7.60. And the median was -2.38.


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 * 0.7433+0.528 * 0.9804+0.404 * 1.0249+0.892 * 1.2243+0.115 * 0.778
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0143+4.679 * -0.0799-0.327 * 0.9686
=-2.91

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $114.1 Mil.
Revenue was 195.133 + 183.616 + 173.276 + 206.951 = $759.0 Mil.
Gross Profit was 49.009 + 46.55 + 41.801 + 47.596 = $185.0 Mil.
Total Current Assets was $129.8 Mil.
Total Assets was $277.6 Mil.
Property, Plant and Equipment(Net PPE) was $12.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.9 Mil.
Selling, General & Admin. Expense(SGA) was $166.3 Mil.
Total Current Liabilities was $108.6 Mil.
Long-Term Debt was $29.8 Mil.
Net Income was 1.862 + -0.123 + -1.719 + -2.016 = $-2.0 Mil.
Non Operating Income was 0.395 + -0.622 + -0.095 + 0.242 = $-0.1 Mil.
Cash Flow from Operations was 3.48 + 2.245 + 3.493 + 11.043 = $20.3 Mil.
Accounts Receivable was $125.3 Mil.
Revenue was 215.495 + 196.234 + 102.252 + 105.948 = $619.9 Mil.
Gross Profit was 50.713 + 42.701 + 27.105 + 27.592 = $148.1 Mil.
Total Current Assets was $147.5 Mil.
Total Assets was $306.9 Mil.
Property, Plant and Equipment(Net PPE) was $13.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.2 Mil.
Selling, General & Admin. Expense(SGA) was $133.9 Mil.
Total Current Liabilities was $110.7 Mil.
Long-Term Debt was $47.2 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)
=(114.051 / 758.976) / (125.322 / 619.929)
=0.15026957 / 0.20215541
=0.7433

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)
=(148.111 / 619.929) / (184.956 / 758.976)
=0.23891607 / 0.2436915
=0.9804

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 - (129.848 + 12.114) / 277.633) / (1 - (147.545 + 13.016) / 306.876)
=0.48867029 / 0.47678867
=1.0249

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
=758.976 / 619.929
=1.2243

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))
=(8.185 / (8.185 + 13.016)) / (11.934 / (11.934 + 12.114))
=0.38606669 / 0.49625749
=0.778

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)
=(166.302 / 758.976) / (133.915 / 619.929)
=0.21911365 / 0.21601667
=1.0143

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)
=((29.76 + 108.582) / 277.633) / ((47.192 + 110.681) / 306.876)
=0.49829091 / 0.51445209
=0.9686

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
=(-1.996 - -0.08 - 20.261) / 277.633
=-0.0799

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 -2.91 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.11121.07921.00990.97271.35941.17890.92690.78810.51170.7433
GMI 1.00091.05011.08981.08381.15481.15561.15411.15331.02770.9804
AQI 1.22631.3340.98740.90991.30481.25291.23991.28261.06841.0249
SGI 1.12321.20191.24851.24751.43971.67251.83691.93781.55041.2243
DEPI 0.96380.99581.11321.23692.40181.95641.52851.26250.66240.778
SGAI 0.96080.9220.93160.94360.89210.89950.88470.88120.99181.0143
LVGI 0.71620.70051.01151.09541.19960.96740.92690.91350.73670.9686
TATA -0.0063-0.00260.03080.00660.01490.0004-0.0388-0.0556-0.0942-0.0799
M-score -2.11-1.97-2.04-2.24-1.37-1.39-1.70-1.82-2.79-2.91
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