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NII Holdings Inc (NAS:NIHD)
Beneish M-Score
-3.43 (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 -3.43 suggests that the company is not a manipulator.

NIHD' s 10-Year Beneish M-Score Range
Min: -15.13   Max: 1.48
Current: -3.43

-15.13
1.48

During the past 13 years, the highest Beneish M-Score of NII Holdings Inc was 1.48. The lowest was -15.13. And the median was -2.59.


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 * 0.5895+0.528 * 1.1139+0.404 * 2.1937+0.892 * 0.8032+0.115 * 0.306
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0185+4.679 * -0.2272-0.327 * 0.3589
=-3.43

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $230 Mil.
Revenue was 420.765 + 763.869 + 854.231 + 926.727 = $2,966 Mil.
Gross Profit was 190.76 + 312.206 + 310.158 + 386.869 = $1,200 Mil.
Total Current Assets was $1,151 Mil.
Total Assets was $3,505 Mil.
Property, Plant and Equipment(Net PPE) was $694 Mil.
Depreciation, Depletion and Amortization(DDA) was $611 Mil.
Selling, General & Admin. Expense(SGA) was $1,399 Mil.
Total Current Liabilities was $1,207 Mil.
Long-Term Debt was $92 Mil.
Net Income was 2050.033 + -309.517 + -514.861 + -443.447 = $782 Mil.
Non Operating Income was 1975.967 + -97.182 + -99.212 + -120.638 = $1,659 Mil.
Cash Flow from Operations was -83.902 + -170.855 + 167.457 + 6.874 = $-80 Mil.
Accounts Receivable was $485 Mil.
Revenue was 586.914 + 955.781 + 1063.768 + 1085.633 = $3,692 Mil.
Gross Profit was 239.612 + 374.848 + 518.099 + 531.597 = $1,664 Mil.
Total Current Assets was $2,573 Mil.
Total Assets was $7,439 Mil.
Property, Plant and Equipment(Net PPE) was $3,260 Mil.
Depreciation, Depletion and Amortization(DDA) was $546 Mil.
Selling, General & Admin. Expense(SGA) was $1,710 Mil.
Total Current Liabilities was $7,462 Mil.
Long-Term Debt was $222 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)
=(229.729 / 2965.592) / (485.185 / 3692.096)
=0.0774648 / 0.13141181
=0.5895

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)
=(312.206 / 3692.096) / (190.76 / 2965.592)
=0.45073476 / 0.4046386
=1.1139

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 - (1150.842 + 693.62) / 3504.604) / (1 - (2572.977 + 3259.529) / 7438.786)
=0.47370316 / 0.21593308
=2.1937

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
=2965.592 / 3692.096
=0.8032

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))
=(545.506 / (545.506 + 3259.529)) / (611.315 / (611.315 + 693.62))
=0.14336425 / 0.46846395
=0.306

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)
=(1398.706 / 2965.592) / (1709.754 / 3692.096)
=0.47164478 / 0.46308493
=1.0185

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)
=((92.067 + 1207.162) / 3504.604) / ((221.598 + 7461.628) / 7438.786)
=0.37072063 / 1.0328602
=0.3589

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
=(782.208 - 1658.935 - -80.426) / 3504.604
=-0.2272

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 -3.43 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.99791.00441.05650.8011.30991.00830.90820.86730.9671.0086
GMI 0.94061.0111.00171.00751.03990.96270.9931.06011.14271.3127
AQI 0.74381.3731.03530.9060.83920.97241.25661.25260.71881.2876
SGI 1.3641.35831.39011.29521.031.27371.19960.90580.78410.7729
DEPI 1.29720.97980.86720.81711.19320.93770.99120.92830.98870.7988
SGAI 1.10250.97570.99371.00330.99711.05981.07831.02161.04981.1489
LVGI 0.96060.82661.05051.03011.07650.92351.1661.0921.29990.4894
TATA -0.0486-0.0567-0.0499-0.0542-0.0775-0.0712-0.0718-0.1125-0.1498-0.2063
M-score -2.49-2.21-2.33-2.72-2.58-2.58-2.69-3.12-3.55-3.24

NII Holdings Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.27370.96520.89560.9330.72261.09621.11941.11170.96380.5895
GMI 1.06391.07011.10811.14141.20691.22681.23141.28741.1821.1139
AQI 0.97450.96751.02430.71880.93571.03091.02731.28761.11632.1937
SGI 0.82050.84110.83610.81270.78930.68630.69850.70120.71750.8032
DEPI 1.04520.84060.78880.90370.89271.23220.91840.79370.68860.306
SGAI 1.10171.11291.14111.11111.14021.16661.15511.11091.04921.0185
LVGI 1.17191.21921.25711.29991.30861.31210.51040.48940.53050.3589
TATA -0.0978-0.1437-0.1499-0.1507-0.1361-0.1402-0.182-0.2056-0.259-0.2272
M-score -2.89-3.41-3.49-3.58-3.61-3.30-3.23-3.21-3.72-3.43
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