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Media General Inc (NYSE:MEG)
Beneish M-Score
-2.34 (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 -2.34 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: -2.34

-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 * 0.8908+0.528 * 1.0851+0.404 * 1.007+0.892 * 1.402+0.115 * 0.7298
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8929+4.679 * -0.0324-0.327 * 1.0198
=-2.34

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $308 Mil.
Revenue was 362.706 + 343.463 + 365.95 + 321.736 = $1,394 Mil.
Gross Profit was 209.107 + 192.32 + 213.245 + 178.244 = $793 Mil.
Total Current Assets was $362 Mil.
Total Assets was $4,319 Mil.
Property, Plant and Equipment(Net PPE) was $456 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $364 Mil.
Total Current Liabilities was $155 Mil.
Long-Term Debt was $2,216 Mil.
Net Income was 18.498 + -26.19 + 14.832 + -48.493 = $-41 Mil.
Non Operating Income was 0.122 + 0.074 + -0.525 + -0.338 = $-1 Mil.
Cash Flow from Operations was 43.505 + -4.799 + 21.452 + 39.108 = $99 Mil.
Accounts Receivable was $246 Mil.
Revenue was 320.523 + 296.734 + 216.71 + 160.224 = $994 Mil.
Gross Profit was 186.354 + 170.858 + 150.908 + 105.545 = $614 Mil.
Total Current Assets was $407 Mil.
Total Assets was $4,569 Mil.
Property, Plant and Equipment(Net PPE) was $484 Mil.
Depreciation, Depletion and Amortization(DDA) was $117 Mil.
Selling, General & Admin. Expense(SGA) was $291 Mil.
Total Current Liabilities was $171 Mil.
Long-Term Debt was $2,287 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)
=(307.612 / 1393.855) / (246.295 / 994.191)
=0.22069154 / 0.24773409
=0.8908

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)
=(613.665 / 994.191) / (792.916 / 1393.855)
=0.61725061 / 0.56886548
=1.0851

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 - (361.902 + 455.696) / 4319.492) / (1 - (406.844 + 483.581) / 4568.788)
=0.81071895 / 0.80510696
=1.007

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
=1393.855 / 994.191
=1.402

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))
=(116.823 / (116.823 + 483.581)) / (165.677 / (165.677 + 455.696))
=0.19457399 / 0.26663051
=0.7298

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)
=(363.713 / 1393.855) / (290.556 / 994.191)
=0.26094034 / 0.2922537
=0.8929

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)
=((2215.541 + 154.8) / 4319.492) / ((2287.131 + 171.315) / 4568.788)
=0.54875458 / 0.53809588
=1.0198

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
=(-41.353 - -0.667 - 99.266) / 4319.492
=-0.0324

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 -2.34 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 1.0381.04950.86031.2392.11431.00010.4972.44881.0080.5554
GMI 1.00621.04420.72190.99121.24790.9490.92491.07850.96431.1699
AQI 1.09930.96620.77950.92971.0480.85191.45651.16241.06491.0237
SGI 1.12140.93150.88720.82470.46350.57261.30751.18292.50071.9334
DEPI 1.05180.93411.03651.10991.04911.61190.36392.41820.70420.4467
SGAI 0.98171.02881.67640.97220.63830.98830.90960.97170.9060.924
LVGI 1.38321.00381.53641.01641.01221.05420.55791.31581.07950.983
TATA -0.0359-0.035-0.545-0.0576-0.0880.0778-0.09590.0015-0.0116-0.0451
M-score -2.58-2.66-5.78-2.71-2.13-2.53-2.89-0.81-1.22-2.21

Media General Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.10160.69130.43761.0080.95321.05281.25830.55540.7620.8908
GMI 1.09731.11671.1140.96431.01711.06671.11511.16991.1251.0851
AQI 1.17141.18541.21361.06491.0241.04551.04541.02371.03361.007
SGI 1.78312.61534.14642.50072.27552.15142.03381.93341.63291.402
DEPI 0.80310.49430.64320.70420.75850.78360.70160.44670.5820.7298
SGAI 1.0911.17951.47430.9060.89340.86910.88750.9240.88860.8929
LVGI 1.10421.05071.0921.07951.0491.04581.03670.9831.00311.0198
TATA 0.01780.0118-0.004-0.0116-0.0316-0.0372-0.0515-0.0451-0.0356-0.0324
M-score -1.56-1.24-0.22-1.22-1.54-1.54-1.51-2.21-2.25-2.34
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