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NII Holdings Inc (NAS:NIHD)
Beneish M-Score
-3.20 (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 -3.20 suggests that the company is not a manipulator.

NIHD' s 10-Year Beneish M-Score Range
Min: -15.13   Max: 1.48
Current: -3.2

-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 -2.49.


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 * 1.1306+0.528 * 1.2364+0.404 * 0.9357+0.892 * 0.7979+0.115 * 0.8848
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1034+4.679 * -0.1338-0.327 * 1.3086
=-3.20

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $793 Mil.
Revenue was 970.214 + 1080.9 + 1101.265 + 1259.56 = $4,412 Mil.
Gross Profit was 366.826 + 510.765 + 519.711 + 632.688 = $2,030 Mil.
Total Current Assets was $3,191 Mil.
Total Assets was $8,190 Mil.
Property, Plant and Equipment(Net PPE) was $3,395 Mil.
Depreciation, Depletion and Amortization(DDA) was $673 Mil.
Selling, General & Admin. Expense(SGA) was $1,883 Mil.
Total Current Liabilities was $2,112 Mil.
Long-Term Debt was $5,749 Mil.
Net Income was -376.079 + -745.803 + -299.941 + -396.351 = $-1,818 Mil.
Non Operating Income was -11.876 + -62.009 + -0.363 + -112.826 = $-187 Mil.
Cash Flow from Operations was -485.559 + -89.734 + -62.411 + 102.324 = $-535 Mil.
Accounts Receivable was $879 Mil.
Revenue was 1330.839 + 1381.971 + 1407.367 + 1409.424 = $5,530 Mil.
Gross Profit was 725.445 + 788.713 + 828.028 + 803.415 = $3,146 Mil.
Total Current Assets was $3,798 Mil.
Total Assets was $9,685 Mil.
Property, Plant and Equipment(Net PPE) was $3,860 Mil.
Depreciation, Depletion and Amortization(DDA) was $662 Mil.
Selling, General & Admin. Expense(SGA) was $2,139 Mil.
Total Current Liabilities was $1,515 Mil.
Long-Term Debt was $5,589 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)
=(793.04 / 4411.939) / (879.139 / 5529.601)
=0.17974863 / 0.15898778
=1.1306

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)
=(510.765 / 5529.601) / (366.826 / 4411.939)
=0.56886582 / 0.46011289
=1.2364

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 - (3190.532 + 3395.029) / 8189.665) / (1 - (3798.219 + 3859.611) / 9685.117)
=0.19586931 / 0.20931983
=0.9357

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
=4411.939 / 5529.601
=0.7979

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))
=(662.031 / (662.031 + 3859.611)) / (673.201 / (673.201 + 3395.029))
=0.14641385 / 0.16547762
=0.8848

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)
=(1883.182 / 4411.939) / (2139.139 / 5529.601)
=0.42683772 / 0.38685232
=1.1034

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)
=((5749.29 + 2111.61) / 8189.665) / ((5589.136 + 1514.836) / 9685.117)
=0.95985611 / 0.73349367
=1.3086

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
=(-1818.174 - -187.074 - -535.38) / 8189.665
=-0.1338

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 -3.20 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98240.99791.05841.06630.75321.31071.00770.90610.92130.9324
GMI 1.03950.98040.971.00171.00751.04230.96050.99151.04451.1616
AQI 2.06930.74381.3731.03530.9060.83920.97241.25661.25260.696
SGI 1.36351.3641.35831.39011.29521.02941.27451.20240.85270.831
DEPI 1.39611.29720.97980.8830.80151.19170.94010.99661.01660.9091
SGAI 0.90481.02081.05370.99371.00330.99821.05861.00361.08491.0622
LVGI 0.9310.96060.82661.05051.03011.07650.92351.1661.0921.2999
TATA -0.0847-0.0486-0.0567-0.0538-0.0599-0.0791-0.0712-0.0695-0.1123-0.1498
M-score -2.03-2.46-2.19-2.34-2.79-2.58-2.59-2.67-3.13-3.55

NII Holdings Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.90610.87350.81451.05430.90731.27370.96520.89280.94681.1306
GMI 0.99150.99561.0271.03851.04721.06391.07011.11651.15861.2364
AQI 1.25661.272811.02221.25260.97450.96751.02430.6960.9357
SGI 1.20241.13331.00760.90890.86590.82050.84110.83870.81840.7979
DEPI 0.99661.03311.05011.23081.01661.04520.84060.78540.90910.8848
SGAI 1.00361.01371.02680.99371.08561.10171.09521.11611.07071.1034
LVGI 1.1661.0841.0771.05021.0921.17191.21921.25711.29991.3086
TATA -0.0695-0.0763-0.0544-0.0559-0.1124-0.0978-0.1437-0.1501-0.1498-0.1338
M-score -2.67-2.75-2.91-2.73-3.13-2.89-3.41-3.48-3.55-3.20
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