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Media General Inc (NYSE:MEG)
Beneish M-Score
-0.26 (As of Today)

Warning Sign:

Beneish M-Score -0.26 higher than -2.22, which implies that it might have manipulated its financial results.

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 -0.26 signals that the company is a manipulator.

MEG' s 10-Year Beneish M-Score Range
Min: -6.94   Max: 3.71
Current: -0.26

-6.94
3.71

During the past 13 years, the highest Beneish M-Score of Media General Inc was 3.71. The lowest was -6.94. 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 * 0.4376+0.528 * 1.114+0.404 * 1.2136+0.892 * 4.1464+0.115 * 0.2913
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4743+4.679 * -0.004-0.327 * 1.092
=-0.26

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $106.1 Mil.
Revenue was 160.224 + 154.111 + 143.918 + 109.988 = $568.2 Mil.
Gross Profit was 105.545 + 103.293 + 93.303 + 74.173 = $376.3 Mil.
Total Current Assets was $155.9 Mil.
Total Assets was $1,908.6 Mil.
Property, Plant and Equipment(Net PPE) was $276.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $68.1 Mil.
Selling, General & Admin. Expense(SGA) was $186.7 Mil.
Total Current Liabilities was $98.2 Mil.
Long-Term Debt was $904.9 Mil.
Net Income was 13.395 + 6.786 + 5.385 + -5.157 = $20.4 Mil.
Non Operating Income was 0.019 + 0 + -0.183 + -4.382 = $-4.5 Mil.
Cash Flow from Operations was 40.543 + 24.355 + -21.536 + -10.772 = $32.6 Mil.
Accounts Receivable was $58.5 Mil.
Revenue was 54.097 + 55.782 + 50.045 + -22.881 = $137.0 Mil.
Gross Profit was 33.485 + 36.207 + 30.833 + 0.579 = $101.1 Mil.
Total Current Assets was $114.5 Mil.
Total Assets was $773.4 Mil.
Property, Plant and Equipment(Net PPE) was $166.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General & Admin. Expense(SGA) was $30.5 Mil.
Total Current Liabilities was $76.5 Mil.
Long-Term Debt was $295.7 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)
=(106.117 / 568.241) / (58.486 / 137.043)
=0.18674647 / 0.42677116
=0.4376

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)
=(103.293 / 137.043) / (105.545 / 568.241)
=0.73775384 / 0.66224366
=1.114

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 - (155.922 + 276.668) / 1908.553) / (1 - (114.451 + 166.105) / 773.421)
=0.77334137 / 0.63725319
=1.2136

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
=568.241 / 137.043
=4.1464

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))
=(10.137 / (10.137 + 166.105)) / (68.078 / (68.078 + 276.668))
=0.0575175 / 0.19747292
=0.2913

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)
=(186.658 / 568.241) / (30.535 / 137.043)
=0.32848387 / 0.22281328
=1.4743

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)
=((904.868 + 98.184) / 1908.553) / ((295.721 + 76.498) / 773.421)
=0.52555627 / 0.48126312
=1.092

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
=(20.409 - -4.546 - 32.59) / 1908.553
=-0.004

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 -0.26 signals that the company is likely to 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.00831.00291.0381.04950.86031.2392.11430.6220.79922.4488
GMI 0.98081.01811.00621.04420.72190.99121.24791.01720.86291.0785
AQI 1.01450.84241.09930.96620.77950.92971.0480.85191.45651.1624
SGI 1.02641.0011.12140.93150.88720.82470.46350.92060.81321.1829
DEPI 0.96990.97111.05180.93411.03651.10991.04910.52011.63071.6723
SGAI 0.99111.05090.98171.02881.67640.97220.63831.06220.84620.9717
LVGI 0.84091.32791.38321.00381.53641.01641.01221.05420.55791.3158
TATA -0.0271-0.1932-0.0359-0.035-0.545-0.0576-0.088-0.085-0.09590.0015
M-score -2.53-3.55-2.58-2.66-5.78-2.71-2.13-3.43-2.92-0.89

Media General Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.46460.23211.03840.93961.68952.27912.44881.10160.69130.4376
GMI 0.81290.21311.01320.91060.8450.86991.07851.09731.11671.114
AQI 0.97331.1821.45651.2291.23881.01531.16241.17141.18541.2136
SGI 1.50313.18440.62580.70380.58650.41661.18291.78312.61534.1464
DEPI 0.52010.60351.63072.57718.92463.42951.67230.40190.16630.2913
SGAI 1.2721-3.03030.62530.69410.73260.58980.97171.0911.17951.4743
LVGI 1.21451.18660.55790.65420.59620.57971.31581.10421.05071.092
TATA -0.2564-0.2878-0.0959-0.02830.17240.18230.00150.01780.0118-0.004
M-score -4.01-2.34-2.75-2.54-0.30-0.55-0.89-1.60-1.27-0.26
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