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Media General Inc (NYSE:MEG)
Beneish M-Score
-1.26 (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 -1.26 signals that the company is a manipulator.

MEG' s 10-Year Beneish M-Score Range
Min: -5.78   Max: -0.95
Current: -1.26

-5.78
-0.95

During the past 13 years, the highest Beneish M-Score of Media General Inc was -0.95. 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 * 0.9615+0.528 * 0.9643+0.404 * 1.0528+0.892 * 2.5007+0.115 * 0.7617
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.906+4.679 * -0.0115-0.327 * 1.0686
=-1.26

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $265.2 Mil.
Revenue was 216.71 + 160.224 + 154.111 + 143.918 = $675.0 Mil.
Gross Profit was 150.908 + 105.545 + 103.293 + 93.303 = $453.0 Mil.
Total Current Assets was $524.5 Mil.
Total Assets was $4,742.8 Mil.
Property, Plant and Equipment(Net PPE) was $495.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $88.2 Mil.
Selling, General & Admin. Expense(SGA) was $204.5 Mil.
Total Current Liabilities was $188.3 Mil.
Long-Term Debt was $2,415.0 Mil.
Net Income was 27.94 + 13.395 + 6.786 + 5.385 = $53.5 Mil.
Non Operating Income was 39.737 + 0.019 + 0 + -0.183 = $39.6 Mil.
Cash Flow from Operations was 25.16 + 40.543 + 24.355 + -21.536 = $68.5 Mil.
Accounts Receivable was $110.3 Mil.
Revenue was 109.988 + 54.097 + 55.782 + 50.045 = $269.9 Mil.
Gross Profit was 74.173 + 33.485 + 36.207 + 30.833 = $174.7 Mil.
Total Current Assets was $203.3 Mil.
Total Assets was $1,921.4 Mil.
Property, Plant and Equipment(Net PPE) was $285.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $37.1 Mil.
Selling, General & Admin. Expense(SGA) was $90.3 Mil.
Total Current Liabilities was $80.0 Mil.
Long-Term Debt was $906.9 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)
=(265.169 / 674.963) / (110.283 / 269.912)
=0.3928645 / 0.40858873
=0.9615

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)
=(105.545 / 269.912) / (150.908 / 674.963)
=0.64724058 / 0.6712205
=0.9643

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 - (524.544 + 495.379) / 4742.774) / (1 - (203.296 + 285.467) / 1921.368)
=0.78495222 / 0.74561719
=1.0528

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
=674.963 / 269.912
=2.5007

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))
=(37.134 / (37.134 + 285.467)) / (88.187 / (88.187 + 495.379))
=0.11510814 / 0.15111744
=0.7617

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)
=(204.491 / 674.963) / (90.259 / 269.912)
=0.30296624 / 0.33440158
=0.906

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)
=((2415.031 + 188.281) / 4742.774) / ((906.939 + 79.992) / 1921.368)
=0.54890071 / 0.51366058
=1.0686

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
=(53.506 - 39.573 - 68.522) / 4742.774
=-0.0115

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 -1.26 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.23211.03840.93961.68952.27912.44881.10160.69130.43760.9615
GMI 0.21311.01320.91060.8450.86991.07851.09731.11671.1140.9643
AQI 1.1821.45651.2291.23881.01531.16241.17141.18541.21361.0528
SGI 3.18440.62580.70380.58650.41661.18291.78312.61534.14642.5007
DEPI 0.60351.63072.57718.92463.42951.2030.31950.13980.25780.7617
SGAI -3.03030.62530.69410.73260.58980.97171.0911.17951.47430.906
LVGI 1.18660.55790.65420.59620.57971.31581.10421.05071.0921.0686
TATA -0.2878-0.0959-0.02830.17240.18230.00150.01780.0118-0.004-0.0115
M-score -2.34-2.75-2.54-0.30-0.55-0.94-1.61-1.28-0.26-1.26
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