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Media General Inc (NYSE:MEG)
Beneish M-Score
-2.25 (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.

Media General Inc has a M-score of -2.25 suggests that the company is not a manipulator.

MEG' s Beneish M-Score Range Over the Past 10 Years
Min: -5.78   Max: 3.71
Current: -2.25

-5.78
3.71

During the past 13 years, the highest Beneish M-Score of Media General Inc was 3.71. The lowest was -5.78. And the median was -2.63.


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 Media General 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 * 0.762+0.528 * 1.125+0.404 * 1.0336+0.892 * 1.6329+0.115 * 0.582
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8886+4.679 * -0.0356-0.327 * 1.0031
=-2.25

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $292 Mil.
Revenue was 343.463 + 365.95 + 321.736 + 320.523 = $1,352 Mil.
Gross Profit was 192.32 + 213.245 + 178.244 + 186.354 = $770 Mil.
Total Current Assets was $343 Mil.
Total Assets was $4,325 Mil.
Property, Plant and Equipment(Net PPE) was $457 Mil.
Depreciation, Depletion and Amortization(DDA) was $168 Mil.
Selling, General & Admin. Expense(SGA) was $361 Mil.
Total Current Liabilities was $153 Mil.
Long-Term Debt was $2,214 Mil.
Net Income was -26.19 + 14.832 + -48.493 + 1.635 = $-58 Mil.
Non Operating Income was 0.074 + -0.525 + -0.338 + 0.795 = $0 Mil.
Cash Flow from Operations was -4.799 + 21.452 + 39.108 + 39.969 = $96 Mil.
Accounts Receivable was $235 Mil.
Revenue was 296.734 + 216.71 + 160.224 + 154.111 = $828 Mil.
Gross Profit was 170.858 + 150.908 + 105.545 + 103.293 = $531 Mil.
Total Current Assets was $504 Mil.
Total Assets was $4,696 Mil.
Property, Plant and Equipment(Net PPE) was $489 Mil.
Depreciation, Depletion and Amortization(DDA) was $91 Mil.
Selling, General & Admin. Expense(SGA) was $249 Mil.
Total Current Liabilities was $175 Mil.
Long-Term Debt was $2,387 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)
=(291.889 / 1351.672) / (234.577 / 827.779)
=0.21594662 / 0.28338119
=0.762

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)
=(530.604 / 827.779) / (770.163 / 1351.672)
=0.64099717 / 0.56978542
=1.125

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 - (342.869 + 457.418) / 4324.76) / (1 - (504.117 + 489.262) / 4695.876)
=0.81495227 / 0.78845715
=1.0336

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
=1351.672 / 827.779
=1.6329

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))
=(90.645 / (90.645 + 489.262)) / (167.958 / (167.958 + 457.418))
=0.15630955 / 0.26857123
=0.582

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)
=(360.871 / 1351.672) / (248.702 / 827.779)
=0.26698119 / 0.30044493
=0.8886

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)
=((2214.153 + 153.448) / 4324.76) / ((2387.45 + 175.372) / 4695.876)
=0.54745258 / 0.54576015
=1.0031

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
=(-58.216 - 0.006 - 95.73) / 4324.76
=-0.0356

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.

Media General Inc has a M-score of -2.25 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.

Media General Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.08671.03110.88931.24310.95030.63011.11323.86041.0080.5554
GMI 0.99921.03591.04810.68950.97711.01251.18951.00390.96431.1699
AQI 1.09930.96620.77950.92971.0480.85191.45651.16241.06491.0237
SGI 1.07110.94810.85820.8221.03120.90870.58380.75032.50071.9334
DEPI 1.05180.93411.03651.10991.04910.52010.91682.97460.55180.5701
SGAI 0.98681.05481.02881.55180.99721.06430.52381.00290.9060.924
LVGI 1.38321.00381.53641.01641.01221.05420.55791.31581.07950.983
TATA -0.0359-0.035-0.5413-0.0576-0.0926-0.0848-0.40320.0015-0.0116-0.0451
M-score -2.58-2.67-5.48-2.96-2.92-3.44-4.130.13-1.24-2.20

Media General Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 2.44881.10160.69130.43761.0080.95321.05281.25830.55540.762
GMI 1.07851.09731.11671.1140.96431.01711.06671.11511.16991.125
AQI 1.16241.17141.18541.21361.06491.0241.04551.04541.02371.0336
SGI 1.18291.78312.61534.14642.50072.27552.15142.03381.93341.6329
DEPI 2.41820.80310.49430.64320.70420.75850.78360.70160.44670.582
SGAI 0.97171.0911.17951.47430.9060.89340.86910.88750.9240.8886
LVGI 1.31581.10421.05071.0921.07951.0491.04581.03670.9831.0031
TATA 0.00150.01780.0118-0.004-0.0116-0.0316-0.0372-0.0515-0.0451-0.0356
M-score -0.81-1.56-1.24-0.22-1.22-1.54-1.54-1.51-2.21-2.25
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