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GuruFocus has detected 7 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 -2.37.


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 * 1.037+0.528 * 0.9094+0.404 * 1.0132+0.892 * 0.952+0.115 * 1.0265
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0567+4.679 * -0.048-0.327 * 0.9406
=-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 (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $97.5 Mil.
Revenue was 181.771 + 198.881 + 195.133 + 182.379 = $758.2 Mil.
Gross Profit was 45.709 + 50.124 + 49.009 + 46.55 = $191.4 Mil.
Total Current Assets was $118.4 Mil.
Total Assets was $263.1 Mil.
Property, Plant and Equipment(Net PPE) was $13.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.8 Mil.
Selling, General & Admin. Expense(SGA) was $166.6 Mil.
Total Current Liabilities was $94.2 Mil.
Long-Term Debt was $30.2 Mil.
Net Income was 0.907 + 2.61 + 1.862 + -0.123 = $5.3 Mil.
Non Operating Income was 0.05 + 0.304 + 0.395 + -0.621 = $0.1 Mil.
Cash Flow from Operations was 2.76 + 9.256 + 3.48 + 2.26 = $17.8 Mil.
Accounts Receivable was $98.7 Mil.
Revenue was 178.299 + 206.322 + 215.495 + 196.234 = $796.4 Mil.
Gross Profit was 41.801 + 47.596 + 50.713 + 42.701 = $182.8 Mil.
Total Current Assets was $130.5 Mil.
Total Assets was $282.6 Mil.
Property, Plant and Equipment(Net PPE) was $12.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.0 Mil.
Selling, General & Admin. Expense(SGA) was $165.6 Mil.
Total Current Liabilities was $95.9 Mil.
Long-Term Debt was $46.2 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)
=(97.479 / 758.164) / (98.738 / 796.35)
=0.12857245 / 0.1239882
=1.037

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)
=(182.811 / 796.35) / (191.392 / 758.164)
=0.22956112 / 0.25244142
=0.9094

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 - (118.414 + 13.133) / 263.084) / (1 - (130.514 + 12.648) / 282.625)
=0.49998099 / 0.49345599
=1.0132

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
=758.164 / 796.35
=0.952

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))
=(11.961 / (11.961 + 12.648)) / (11.811 / (11.811 + 13.133))
=0.48604169 / 0.47350064
=1.0265

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)
=(166.564 / 758.164) / (165.571 / 796.35)
=0.21969389 / 0.20791235
=1.0567

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)
=((30.206 + 94.197) / 263.084) / ((46.178 + 95.91) / 282.625)
=0.47286418 / 0.50274392
=0.9406

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
=(5.256 - 0.128 - 17.756) / 263.084
=-0.048

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 0.62190.72080.87711.15911.39580.85730.9591.11121.35940.5097
GMI 1.2063828.4080.00111.06951.01421.07521.00251.00091.15481.0318
AQI 0.74421.12810.44380.76751.44381.80770.94611.22631.30481.0684
SGI 2.85341.32671.36731.07091.38921.45721.04661.12321.43971.5567
DEPI 00.87870.8161.07981.33880.74740.8550.96382.40180.6624
SGAI 2.29150.47381.5540.92840.97020.95560.97890.96080.89210.9878
LVGI 1.58830.91211.60410.94490.9090.90.96090.71621.19960.7367
TATA -0.04190.0107-0.5507-0.0597-0.0026-0.02350.0005-0.00630.0149-0.0942
M-score -1.89434.63-5.91-2.57-1.52-1.94-2.49-2.11-1.37-2.78

Radiant Logistics Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.00990.97271.35941.17890.92770.78370.50970.74030.99961.037
GMI 1.08981.08381.15481.15561.15311.15971.03180.98450.93950.9094
AQI 0.98740.90991.30481.25291.23991.28261.06841.02491.02841.0132
SGI 1.24851.24751.43971.67251.83531.94861.55671.22941.04770.952
DEPI 1.11321.23692.40181.95641.52851.26250.66240.7780.89751.0265
SGAI 0.93160.94360.89210.89950.88540.87640.98781.01011.04191.0567
LVGI 1.01151.09541.19960.96740.92690.91350.73670.96860.94710.9406
TATA 0.03080.00660.01490.0004-0.0387-0.0555-0.0942-0.0799-0.0585-0.048
M-score -2.04-2.24-1.37-1.39-1.70-1.81-2.78-2.90-2.73-2.74
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