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Media General Inc (NYSE:MEG)
Beneish M-Score
-1.50 (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 -1.50 signals that the company is a manipulator.

MEG' s Beneish M-Score Range Over the Past 10 Years
Min: -6.94   Max: 3.71
Current: -1.5

-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 -2.62.


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 * 1.2583+0.528 * 1.1151+0.404 * 1.0454+0.892 * 2.0338+0.115 * 0.7395
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8875+4.679 * -0.0515-0.327 * 1.0367
=-1.50

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $272 Mil.
Revenue was 321.736 + 320.523 + 296.734 + 216.71 = $1,156 Mil.
Gross Profit was 178.244 + 186.354 + 170.858 + 150.908 = $686 Mil.
Total Current Assets was $378 Mil.
Total Assets was $4,462 Mil.
Property, Plant and Equipment(Net PPE) was $476 Mil.
Depreciation, Depletion and Amortization(DDA) was $163 Mil.
Selling, General & Admin. Expense(SGA) was $337 Mil.
Total Current Liabilities was $185 Mil.
Long-Term Debt was $2,246 Mil.
Net Income was -48.493 + 1.635 + -7.433 + 27.94 = $-26 Mil.
Non Operating Income was -0.338 + 0.795 + 2.677 + 39.737 = $43 Mil.
Cash Flow from Operations was 39.108 + 39.969 + 56.419 + 25.16 = $161 Mil.
Accounts Receivable was $106 Mil.
Revenue was 160.224 + 154.111 + 143.918 + 109.988 = $568 Mil.
Gross Profit was 105.545 + 103.293 + 93.303 + 74.173 = $376 Mil.
Total Current Assets was $156 Mil.
Total Assets was $1,909 Mil.
Property, Plant and Equipment(Net PPE) was $277 Mil.
Depreciation, Depletion and Amortization(DDA) was $64 Mil.
Selling, General & Admin. Expense(SGA) was $187 Mil.
Total Current Liabilities was $98 Mil.
Long-Term Debt was $905 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)
=(271.578 / 1155.703) / (106.117 / 568.241)
=0.23498944 / 0.18674647
=1.2583

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)
=(186.354 / 568.241) / (178.244 / 1155.703)
=0.66224366 / 0.59389307
=1.1151

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 - (378.491 + 476.217) / 4462.165) / (1 - (155.922 + 276.668) / 1908.553)
=0.80845442 / 0.77334137
=1.0454

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
=1155.703 / 568.241
=2.0338

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))
=(64.363 / (64.363 + 276.668)) / (163.195 / (163.195 + 476.217))
=0.18873064 / 0.25522668
=0.7395

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)
=(336.924 / 1155.703) / (186.658 / 568.241)
=0.29153165 / 0.32848387
=0.8875

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)
=((2245.899 + 185.318) / 4462.165) / ((904.868 + 98.184) / 1908.553)
=0.54485143 / 0.52555627
=1.0367

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
=(-26.351 - 42.871 - 160.656) / 4462.165
=-0.0515

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 -1.50 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.68952.27912.44881.10160.69130.43760.96150.95321.05281.2583
GMI 0.8450.86991.07851.09731.11671.1140.96431.01711.06671.1151
AQI 1.23881.01531.16241.17141.18541.21361.05281.0241.04551.0454
SGI 0.58650.41661.18291.78312.61534.14642.50072.27552.15142.0338
DEPI 8.92463.42951.2030.31950.13980.30480.76170.7990.81430.7395
SGAI 0.73260.58980.97171.0911.17951.47430.9060.89340.86910.8875
LVGI 0.59620.57971.31581.10421.05071.0921.06861.0491.04581.0367
TATA 0.17240.18230.00150.01780.0118-0.004-0.0115-0.0316-0.0372-0.0515
M-score -0.30-0.55-0.94-1.61-1.28-0.25-1.26-1.54-1.54-1.50
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