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Media General Inc (NYSE:MEG)
Beneish M-Score
-2.21 (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 -2.21 signals that the company is a manipulator.

MEG' s Beneish M-Score Range Over the Past 10 Years
Min: -5.78   Max: -0.81
Current: -2.21

-5.78
-0.81

During the past 13 years, the highest Beneish M-Score of Media General Inc was -0.81. The lowest was -5.78. And the median was -2.62.


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 * 0.5554+0.528 * 1.1699+0.404 * 1.0237+0.892 * 1.9334+0.115 * 0.4467
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.924+4.679 * -0.0451-0.327 * 0.983
=-2.21

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $298 Mil.
Revenue was 365.95 + 321.736 + 320.523 + 296.734 = $1,305 Mil.
Gross Profit was 213.245 + 178.244 + 186.354 + 170.858 = $749 Mil.
Total Current Assets was $355 Mil.
Total Assets was $4,408 Mil.
Property, Plant and Equipment(Net PPE) was $471 Mil.
Depreciation, Depletion and Amortization(DDA) was $168 Mil.
Selling, General & Admin. Expense(SGA) was $365 Mil.
Total Current Liabilities was $157 Mil.
Long-Term Debt was $2,245 Mil.
Net Income was 14.832 + -48.493 + 1.635 + -7.433 = $-39 Mil.
Non Operating Income was -0.525 + -0.338 + 0.795 + 2.677 = $3 Mil.
Cash Flow from Operations was 21.452 + 39.108 + 39.969 + 56.419 = $157 Mil.
Accounts Receivable was $278 Mil.
Revenue was 216.71 + 160.224 + 154.111 + 143.918 = $675 Mil.
Gross Profit was 150.908 + 105.545 + 103.293 + 93.303 = $453 Mil.
Total Current Assets was $468 Mil.
Total Assets was $4,697 Mil.
Property, Plant and Equipment(Net PPE) was $499 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General & Admin. Expense(SGA) was $204 Mil.
Total Current Liabilities was $190 Mil.
Long-Term Debt was $2,415 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)
=(298.474 / 1304.943) / (277.985 / 674.963)
=0.2287257 / 0.41185221
=0.5554

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)
=(178.244 / 674.963) / (213.245 / 1304.943)
=0.6712205 / 0.5737423
=1.1699

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 - (354.648 + 470.537) / 4408.352) / (1 - (468.09 + 499.472) / 4697.447)
=0.81281327 / 0.79402386
=1.0237

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
=1304.943 / 674.963
=1.9334

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))
=(66.557 / (66.557 + 499.472)) / (168.12 / (168.12 + 470.537))
=0.11758585 / 0.26323989
=0.4467

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)
=(365.319 / 1304.943) / (204.491 / 674.963)
=0.27995016 / 0.30296624
=0.924

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)
=((2245.366 + 157.428) / 4408.352) / ((2415.031 + 189.681) / 4697.447)
=0.54505493 / 0.55449524
=0.983

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
=(-39.459 - 2.609 - 156.948) / 4408.352
=-0.0451

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 -2.21 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

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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.54412.44881.10160.69130.43761.0080.95321.05281.25830.5554
GMI 0.94121.07851.09731.11671.1140.96431.01711.06671.11511.1699
AQI 1.01531.16241.17141.18541.21361.06491.0241.04551.04541.0237
SGI 0.61491.18291.78312.61534.14642.50072.27552.15142.03381.9334
DEPI 0.11792.41820.80310.49430.64320.70420.75850.78360.70160.4467
SGAI 0.65180.97171.0911.17951.47430.9060.89340.86910.88750.924
LVGI 0.57971.31581.10421.05071.0921.07951.0491.04581.03670.983
TATA 0.18230.00150.01780.0118-0.004-0.0116-0.0316-0.0372-0.0515-0.0451
M-score -1.40-0.81-1.56-1.24-0.22-1.22-1.54-1.54-1.51-2.21
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