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