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NII Holdings Inc (NAS:NIHD)
Beneish M-Score
-3.10 (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 -3.10 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: -3.1

-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 -2.53.


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 * 1.1537+0.528 * 0.7887+0.404 * 0.9744+0.892 * 0.6314+0.115 * 1.5058
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0136+4.679 * -0.0796-0.327 * 0.9913
=-3.10

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $167 Mil.
Revenue was 249.213 + 226.557 + 244.782 + 284.652 = $1,005 Mil.
Gross Profit was 158.442 + 125.367 + 125.512 + 144.166 = $553 Mil.
Total Current Assets was $924 Mil.
Total Assets was $2,847 Mil.
Property, Plant and Equipment(Net PPE) was $609 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $574 Mil.
Total Current Liabilities was $947 Mil.
Long-Term Debt was $99 Mil.
Net Income was -9.871 + -36.588 + -84.582 + -189.421 = $-320 Mil.
Non Operating Income was 40.687 + 36.771 + 2.633 + -103.546 = $-23 Mil.
Cash Flow from Operations was 26.19 + -18.16 + -13.594 + -64.891 = $-70 Mil.
Accounts Receivable was $230 Mil.
Revenue was 320.303 + 363.408 + 432.005 + 476.264 = $1,592 Mil.
Gross Profit was 128.951 + 177.532 + 168.2 + 216.646 = $691 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 $331 Mil.
Selling, General & Admin. Expense(SGA) was $897 Mil.
Total Current Liabilities was $1,207 Mil.
Long-Term Debt was $92 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)
=(167.353 / 1005.204) / (229.729 / 1591.98)
=0.1664866 / 0.14430395
=1.1537

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)
=(691.329 / 1591.98) / (553.487 / 1005.204)
=0.43425734 / 0.55062157
=0.7887

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 - (924.2 + 608.556) / 2846.858) / (1 - (1150.842 + 693.62) / 3504.604)
=0.46159731 / 0.47370316
=0.9744

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
=1005.204 / 1591.98
=0.6314

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))
=(330.924 / (330.924 + 693.62)) / (166.183 / (166.183 + 608.556))
=0.32299638 / 0.21450192
=1.5058

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)
=(574.156 / 1005.204) / (897.153 / 1591.98)
=0.57118356 / 0.5635454
=1.0136

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)
=((99.17 + 947.039) / 2846.858) / ((92.067 + 1207.162) / 3504.604)
=0.36749603 / 0.37072063
=0.9913

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
=(-320.462 - -23.455 - -70.455) / 2846.858
=-0.0796

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 -3.10 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 1.00441.05650.8011.31071.00690.95710.88051.95950.5968
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.68383.38786.82030.45590.69070.3520.1570.77261.1537
GMI 1.36291.67323.60631.25910.99240.78170.34210.88630.7887
AQI 0.93571.03091.02732.38961.11632.19372.24052.42690.9744
SGI 0.33870.22210.11471.09851.00131.34512.43880.57910.6314
DEPI 1.45452.48843.37050.45590.71720.20840.14540.51881.5058
SGAI 1.34991.62722.40571.02990.96780.82780.56761.15521.0136
LVGI 1.30861.31210.51040.38670.53050.35890.83270.73450.9913
TATA -0.14-0.1445-0.1901-0.2334-0.29-0.2704-0.21820.0031-0.0796
M-score -3.04-1.322.77-3.15-3.95-3.52-2.81-2.53-3.10
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