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Media General Inc (NYSE:MEG)
Beneish M-Score
-1.35 (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 -1.35 signals that the company is a manipulator.

MEG' s 10-Year Beneish M-Score Range
Min: -6.94   Max: 3.71
Current: -1.35

-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 * 0.7754+0.528 * 1.0866+0.404 * 1.1854+0.892 * 2.3316+0.115 * 0.1663
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0743+4.679 * 0.0338-0.327 * 1.0507
=-1.35

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $108.7 Mil.
Revenue was 154.111 + 143.918 + 35.464 + 78.489 = $412.0 Mil.
Gross Profit was 103.293 + 93.303 + 35.638 + 46.516 = $278.8 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 $49.3 Mil.
Selling, General & Admin. Expense(SGA) was $126.2 Mil.
Total Current Liabilities was $97.1 Mil.
Long-Term Debt was $850.5 Mil.
Net Income was 6.786 + 5.385 + 54.597 + -14.616 = $52.2 Mil.
Non Operating Income was 0 + -0.183 + -4.329 + 0.042 = $-4.5 Mil.
Cash Flow from Operations was 24.355 + -21.536 + 35.623 + -44.158 = $-5.7 Mil.
Accounts Receivable was $60.2 Mil.
Revenue was 55.782 + 50.045 + -22.881 + 93.752 = $176.7 Mil.
Gross Profit was 36.207 + 30.833 + 0.579 + 62.294 = $129.9 Mil.
Total Current Assets was $96.6 Mil.
Total Assets was $739.6 Mil.
Property, Plant and Equipment(Net PPE) was $162.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.2 Mil.
Selling, General & Admin. Expense(SGA) was $50.4 Mil.
Total Current Liabilities was $66.0 Mil.
Long-Term Debt was $296.2 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)
=(108.744 / 411.982) / (60.152 / 176.698)
=0.26395328 / 0.34042264
=0.7754

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)
=(93.303 / 176.698) / (103.293 / 411.982)
=0.73522621 / 0.67660723
=1.0866

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 - (149.552 + 273.91) / 1841.681) / (1 - (96.575 + 162.58) / 739.637)
=0.77006767 / 0.64961866
=1.1854

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
=411.982 / 176.698
=2.3316

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))
=(4.228 / (4.228 + 162.58)) / (49.272 / (49.272 + 273.91))
=0.02534651 / 0.15245899
=0.1663

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)
=(126.189 / 411.982) / (50.38 / 176.698)
=0.30629736 / 0.28511924
=1.0743

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)
=((850.498 + 97.104) / 1841.681) / ((296.21 + 65.979) / 739.637)
=0.51453102 / 0.4896848
=1.0507

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
=(52.152 - -4.47 - -5.716) / 1841.681
=0.0338

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 -1.35 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.02060.46460.23211.03840.93961.68951.93483.00741.27770.7754
GMI 0.91940.81290.21311.01320.91060.8450.90771.02831.06011.0866
AQI 0.99760.97331.1821.45651.2291.23881.01531.16241.17141.1854
SGI 0.98311.50313.18440.62580.70380.58650.49080.96321.53742.3316
DEPI 0.95840.52010.60351.63072.57718.92464.82251.67230.40190.1663
SGAI 1.08951.2721-3.03030.62530.69410.73260.78560.8070.96331.0743
LVGI 1.08141.21451.18660.55790.65420.59620.57971.31581.10421.0507
TATA -0.0947-0.2564-0.2878-0.0959-0.02830.17240.21760.02260.03980.0338
M-score -3.01-4.01-2.34-2.75-2.54-0.30-0.48-0.47-1.55-1.35
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