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NII Holdings Inc (NAS:NIHD)
Beneish M-Score
-7.98 (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 -7.98 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: -7.98

-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 -2.56.


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 * 1.2963+0.528 * 0.7637+0.404 * 0.757+0.892 * 0.7008+0.115 * 0.5531
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.955+4.679 * -1.0388-0.327 * 2.1617
=-7.98

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $162.9 Mil.
Revenue was 260.836 + 249.213 + 226.557 + 244.782 = $981.4 Mil.
Gross Profit was 158.53 + 158.442 + 125.367 + 125.512 = $567.9 Mil.
Total Current Assets was $781.1 Mil.
Total Assets was $1,476.9 Mil.
Property, Plant and Equipment(Net PPE) was $121.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $196.1 Mil.
Selling, General & Admin. Expense(SGA) was $548.2 Mil.
Total Current Liabilities was $1,008.3 Mil.
Long-Term Debt was $96.7 Mil.
Net Income was -1418.943 + -9.871 + -36.588 + -84.582 = $-1,550.0 Mil.
Non Operating Income was -7.444 + 40.687 + 36.771 + 2.633 = $72.6 Mil.
Cash Flow from Operations was -82.938 + 26.19 + -18.16 + -13.594 = $-88.5 Mil.
Accounts Receivable was $179.3 Mil.
Revenue was 284.652 + 320.303 + 363.408 + 432.005 = $1,400.4 Mil.
Gross Profit was 144.166 + 128.951 + 177.532 + 168.2 = $618.8 Mil.
Total Current Assets was $817.7 Mil.
Total Assets was $2,842.8 Mil.
Property, Plant and Equipment(Net PPE) was $563.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $292.9 Mil.
Selling, General & Admin. Expense(SGA) was $819.0 Mil.
Total Current Liabilities was $896.5 Mil.
Long-Term Debt was $87.5 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)
=(162.907 / 981.388) / (179.316 / 1400.368)
=0.16599653 / 0.1280492
=1.2963

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)
=(618.849 / 1400.368) / (567.851 / 981.388)
=0.44191884 / 0.57862028
=0.7637

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 - (781.086 + 121.051) / 1476.866) / (1 - (817.697 + 563.595) / 2842.79)
=0.38915447 / 0.51410692
=0.757

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
=981.388 / 1400.368
=0.7008

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))
=(292.882 / (292.882 + 563.595)) / (196.089 / (196.089 + 121.051))
=0.34196131 / 0.61830422
=0.5531

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)
=(548.168 / 981.388) / (819.03 / 1400.368)
=0.55856399 / 0.58486769
=0.955

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)
=((96.741 + 1008.348) / 1476.866) / ((87.51 + 896.532) / 2842.79)
=0.74826626 / 0.3461536
=2.1617

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
=(-1549.984 - 72.647 - -88.502) / 1476.866
=-1.0388

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 -7.98 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 local exchange's currency.

NII Holdings Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.00441.05650.8011.31071.00690.95710.88051.95950.5968
GMI 0.971.00171.00751.04230.95850.98331.03011.11941.3279
AQI 1.3731.03530.9060.83920.97241.25661.25260.71882.3896
SGI 1.35831.39011.29521.02941.27551.13830.89220.3870.8393
DEPI 0.97980.8830.80151.19170.93741.09240.98781.42250.4559
SGAI 1.05370.99371.00330.99821.01911.03371.15171.18571.1455
LVGI 0.82661.05051.03011.07650.92351.1661.0921.29990.3867
TATA -0.0567-0.0538-0.0599-0.0791-0.0715-0.0695-0.1114-0.1559-0.2367
M-score -2.24-2.35-2.75-2.58-2.58-2.68-3.15-3.01-3.25

NII Holdings Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 3.38786.82030.45590.69070.3520.1570.77261.15371.2963
GMI 1.67323.60631.25910.99240.78170.34210.88630.78870.7637
AQI 1.03091.02732.38961.11632.19372.24052.42690.97440.757
SGI 0.22210.11471.09851.00131.34512.43880.57910.63140.7008
DEPI 2.48843.37050.45590.71720.20840.14540.51881.50580.5531
SGAI 1.62722.40571.02990.96780.82780.56761.15521.01360.955
LVGI 1.31210.51040.38670.53050.35890.83270.73450.99132.1617
TATA -0.1445-0.1901-0.2334-0.29-0.2704-0.21820.0031-0.0796-1.0388
M-score -1.322.77-3.15-3.95-3.52-2.81-2.53-3.10-7.98
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