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NII Holdings Inc (NAS:NIHD)
Beneish M-Score
-2.55 (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.

NII Holdings Inc has a M-score of -2.55 suggests that the company is not a manipulator.

NIHD' s Beneish M-Score Range Over the Past 10 Years
Min: -12.42   Max: 2.77
Current: -2.55

-12.42
2.77

During the past 13 years, the highest Beneish M-Score of NII Holdings Inc was 2.77. The lowest was -12.42. And the median was -2.54.


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 NII Holdings 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 * 0.7067+0.528 * 0.8668+0.404 * 2.4269+0.892 * 0.6331+0.115 * 0.5188
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1233+4.679 * 0.003-0.327 * 0.7345
=-2.55

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $155 Mil.
Revenue was 226.557 + 244.782 + 284.652 + 420.765 = $1,177 Mil.
Gross Profit was 125.367 + 125.512 + 144.166 + 190.76 = $586 Mil.
Total Current Assets was $687 Mil.
Total Assets was $2,704 Mil.
Property, Plant and Equipment(Net PPE) was $582 Mil.
Depreciation, Depletion and Amortization(DDA) was $199 Mil.
Selling, General & Admin. Expense(SGA) was $704 Mil.
Total Current Liabilities was $921 Mil.
Long-Term Debt was $90 Mil.
Net Income was -36.588 + -84.582 + -189.421 + 2050.033 = $1,739 Mil.
Non Operating Income was 36.771 + 2.633 + -103.546 + 1975.967 = $1,912 Mil.
Cash Flow from Operations was -18.16 + -13.594 + -64.891 + -83.902 = $-181 Mil.
Accounts Receivable was $347 Mil.
Revenue was 363.408 + 432.005 + 476.264 + 586.914 = $1,859 Mil.
Gross Profit was 177.532 + 168.2 + 216.646 + 239.612 = $802 Mil.
Total Current Assets was $1,738 Mil.
Total Assets was $4,897 Mil.
Property, Plant and Equipment(Net PPE) was $2,088 Mil.
Depreciation, Depletion and Amortization(DDA) was $318 Mil.
Selling, General & Admin. Expense(SGA) was $990 Mil.
Total Current Liabilities was $1,807 Mil.
Long-Term Debt was $687 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)
=(155.153 / 1176.756) / (346.772 / 1858.591)
=0.13184806 / 0.1865779
=0.7067

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)
=(125.512 / 1858.591) / (125.367 / 1176.756)
=0.4315043 / 0.49781348
=0.8668

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 - (686.965 + 582.172) / 2703.86) / (1 - (1737.928 + 2088.365) / 4896.965)
=0.5306203 / 0.21863991
=2.4269

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
=1176.756 / 1858.591
=0.6331

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))
=(318.277 / (318.277 + 2088.365)) / (199.178 / (199.178 + 582.172))
=0.13224942 / 0.25491521
=0.5188

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)
=(703.854 / 1176.756) / (989.64 / 1858.591)
=0.59813079 / 0.53246787
=1.1233

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)
=((90.279 + 920.995) / 2703.86) / ((687.094 + 1806.603) / 4896.965)
=0.37401123 / 0.50923317
=0.7345

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
=(1739.442 - 1911.825 - -180.547) / 2703.86
=0.003

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.

NII Holdings Inc has a M-score of -2.55 suggests that the company will not 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.

NII Holdings Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.00441.05650.8011.30991.00830.90820.86730.9670.648
GMI 1.0111.00171.00751.03990.96270.9931.06011.14271.3127
AQI 1.3731.03530.9060.83920.97241.25661.25260.71882.3896
SGI 1.35831.39011.29521.031.27371.19960.90580.78410.7729
DEPI 0.97980.86720.81711.19320.93770.99120.92830.98870.521
SGAI 0.97570.99371.00330.99711.05981.07831.02161.04981.1489
LVGI 0.82661.05051.03011.07650.92351.1661.0921.29990.3867
TATA -0.0567-0.0499-0.0542-0.0775-0.0712-0.0718-0.1125-0.1498-0.2084
M-score -2.21-2.33-2.72-2.58-2.58-2.69-3.12-3.55-3.14

NII Holdings Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.96491.68383.38786.82030.45590.69070.33110.14640.7067
GMI 1.15691.36291.67323.60631.25910.99240.76280.33340.8668
AQI 0.71880.93571.03091.02732.38961.11632.19372.24052.4269
SGI 0.38590.33870.22210.11471.09851.00131.42992.61380.6331
DEPI 1.42251.45452.48843.37050.45590.71720.20840.14540.5188
SGAI 1.22421.34991.62722.40571.02990.96780.81490.55661.1233
LVGI 1.29991.30861.31210.51040.38670.53050.35890.83270.7345
TATA -0.1544-0.14-0.1445-0.1901-0.2334-0.29-0.2705-0.21830.003
M-score -2.98-3.04-1.322.77-3.15-3.95-3.47-2.67-2.55
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