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Media General Inc (NYSE:MEG)
Beneish M-Score
-1.54 (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 -1.54 signals that the company is a manipulator.

MEG' s 10-Year Beneish M-Score Range
Min: -6.94   Max: 3.71
Current: -1.54

-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 * 1.0528+0.528 * 1.0667+0.404 * 1.0455+0.892 * 2.1514+0.115 * 0.8143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8691+4.679 * -0.0372-0.327 * 1.0458
=-1.54

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $246.3 Mil.
Revenue was 320.523 + 296.734 + 216.71 + 160.224 = $994.2 Mil.
Gross Profit was 186.354 + 170.858 + 150.908 + 105.545 = $613.7 Mil.
Total Current Assets was $406.8 Mil.
Total Assets was $4,568.8 Mil.
Property, Plant and Equipment(Net PPE) was $483.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $138.5 Mil.
Selling, General & Admin. Expense(SGA) was $290.6 Mil.
Total Current Liabilities was $171.3 Mil.
Long-Term Debt was $2,287.1 Mil.
Net Income was 1.635 + -7.433 + 27.94 + 13.395 = $35.5 Mil.
Non Operating Income was 0.795 + 2.677 + 39.737 + 0.019 = $43.2 Mil.
Cash Flow from Operations was 39.969 + 56.419 + 25.16 + 40.543 = $162.1 Mil.
Accounts Receivable was $108.7 Mil.
Revenue was 154.111 + 143.918 + 109.988 + 54.097 = $462.1 Mil.
Gross Profit was 103.293 + 93.303 + 74.173 + 33.485 = $304.3 Mil.
Total Current Assets was $149.6 Mil.
Total Assets was $1,841.7 Mil.
Property, Plant and Equipment(Net PPE) was $273.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $60.6 Mil.
Selling, General & Admin. Expense(SGA) was $155.4 Mil.
Total Current Liabilities was $97.1 Mil.
Long-Term Debt was $850.5 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)
=(246.295 / 994.191) / (108.744 / 462.114)
=0.24773409 / 0.23531856
=1.0528

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)
=(170.858 / 462.114) / (186.354 / 994.191)
=0.65839598 / 0.61725061
=1.0667

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 - (406.844 + 483.581) / 4568.788) / (1 - (149.552 + 273.91) / 1841.681)
=0.80510696 / 0.77006767
=1.0455

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
=994.191 / 462.114
=2.1514

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))
=(60.634 / (60.634 + 273.91)) / (138.453 / (138.453 + 483.581))
=0.18124372 / 0.22258108
=0.8143

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)
=(290.556 / 994.191) / (155.404 / 462.114)
=0.2922537 / 0.33628931
=0.8691

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)
=((2287.131 + 171.315) / 4568.788) / ((850.498 + 97.104) / 1841.681)
=0.53809588 / 0.51453102
=1.0458

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
=(35.537 - 43.228 - 162.091) / 4568.788
=-0.0372

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 -1.54 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.00291.0381.04950.86031.2392.11430.6220.79922.44880.9615
GMI 1.01811.00621.04420.72190.99121.24791.01720.86291.07850.9643
AQI 0.84241.09930.96620.77950.92971.0480.85191.45651.16241.0528
SGI 1.0011.12140.93150.88720.82470.46350.92060.81321.18292.5007
DEPI 0.97111.05180.93411.03651.10991.04910.52011.63071.2030.7617
SGAI 1.05090.98171.02881.67640.97220.63831.06220.84620.97170.906
LVGI 1.32791.38321.00381.53641.01641.01221.05420.55791.31581.0686
TATA -0.1932-0.0359-0.035-0.545-0.0576-0.088-0.085-0.09590.0015-0.0115
M-score -3.55-2.58-2.66-5.78-2.71-2.13-3.43-2.92-0.94-1.26

Media General Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.93961.68952.27912.44881.10160.69130.43760.96150.95321.0528
GMI 0.91060.8450.86991.07851.09731.11671.1140.96431.01711.0667
AQI 1.2291.23881.01531.16241.17141.18541.21361.05281.0241.0455
SGI 0.70380.58650.41661.18291.78312.61534.14642.50072.27552.1514
DEPI 2.57718.92463.42951.2030.31950.13980.25780.76170.7990.8143
SGAI 0.69410.73260.58980.97171.0911.17951.47430.9060.89340.8691
LVGI 0.65420.59620.57971.31581.10421.05071.0921.06861.0491.0458
TATA -0.02830.17240.18230.00150.01780.0118-0.004-0.0115-0.0316-0.0372
M-score -2.54-0.30-0.55-0.94-1.61-1.28-0.26-1.26-1.54-1.54
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