Market Cap : 566.11 M | Enterprise Value : 502.23 M | PE Ratio : 95.35 | PB Ratio : 4.92 |
---|
NAS:LQDT has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NAS:LQDT has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -3.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
During the past 13 years, the highest Beneish M-Score of Liquidity Services was 0.39. The lowest was -3.63. And the median was -2.54.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Liquidity Services's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Liquidity Services 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 * 0.8443 | + | 0.528 * 0.9767 | + | 0.404 * 0.819 | + | 0.892 * 0.9559 | + | 0.115 * 0.8673 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0.851 | + | 4.679 * -0.1714 | - | 0.327 * 1.1742 | |||||||
= | -3.60 |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
This Year (Dec20) TTM: | Last Year (Dec19) TTM: |
Accounts Receivable was $4.8 Mil. Revenue was 55.751 + 55.89 + 47.722 + 52.824 = $212.2 Mil. Gross Profit was 33.178 + 33.163 + 25.228 + 26.205 = $117.8 Mil. Total Current Assets was $100.9 Mil. Total Assets was $205.3 Mil. Property, Plant and Equipment(Net PPE) was $31.0 Mil. Depreciation, Depletion and Amortization(DDA) was $6.6 Mil. Selling, General, & Admin. Expense(SGA) was $105.1 Mil. Total Current Liabilities was $77.3 Mil. Long-Term Debt & Capital Lease Obligation was $10.0 Mil. Net Income was 4.514 + 5.447 + 0.213 + -4.238 = $5.9 Mil. Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil. Cash Flow from Operations was 6.038 + 7.277 + 21.338 + 6.466 = $41.1 Mil. |
Accounts Receivable was $5.9 Mil. Revenue was 49.504 + 58.79 + 56.882 + 56.8 = $222.0 Mil. Gross Profit was 25.328 + 31.476 + 31.545 + 31.993 = $120.3 Mil. Total Current Assets was $70.5 Mil. Total Assets was $179.2 Mil. Property, Plant and Equipment(Net PPE) was $30.4 Mil. Depreciation, Depletion and Amortization(DDA) was $5.5 Mil. Selling, General, & Admin. Expense(SGA) was $129.2 Mil. Total Current Liabilities was $57.3 Mil. Long-Term Debt & Capital Lease Obligation was $7.6 Mil. |
1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Accounts Receivable 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) |
= | (4.801 / 212.187) | / | (5.949 / 221.976) | |
= | 0.02262627 | / | 0.02680019 | |
= | 0.8443 |
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) | |
= | (120.342 / 221.976) | / | (117.774 / 212.187) | |
= | 0.54213969 | / | 0.55504814 | |
= | 0.9767 |
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 Property, Plant and Equipment to Total Assets.
AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
= | (1 - (100.871 + 30.97) / 205.254) | / | (1 - (70.523 + 30.419) / 179.196) | |
= | 0.35766903 | / | 0.43669502 | |
= | 0.819 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 | |
= | 212.187 | / | 221.976 | |
= | 0.9559 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
= | (5.459 / (5.459 + 30.419)) | / | (6.589 / (6.589 + 30.97)) | |
= | 0.15215452 | / | 0.17543066 | |
= | 0.8673 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
= | (105.077 / 212.187) | / | (129.167 / 221.976) | |
= | 0.49520941 | / | 0.58189624 | |
= | 0.851 |
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 in leverage
LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
= | ((10.006 + 77.293) / 205.254) | / | ((7.646 + 57.261) / 179.196) | |
= | 0.4253218 | / | 0.36221233 | |
= | 1.1742 |
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 | |
= | (5.936 - 0 | - | 41.119) | / | 205.254 | |
= | -0.1714 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Liquidity Services has a M-score of -3.60 suggests that the company is unlikely to be a manipulator.
No Headline