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Nexstar Broadcasting Group Inc (NAS:NXST)
Beneish M-Score
-2.27 (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.

Nexstar Broadcasting Group Inc has a M-score of -2.27 suggests that the company is not a manipulator.

NXST' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Max: -1.8
Current: -2.27

-3.63
-1.8

During the past 13 years, the highest Beneish M-Score of Nexstar Broadcasting Group Inc was -1.80. The lowest was -3.63. And the median was -2.75.


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 Nexstar Broadcasting Group 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 * 1.0629+0.528 * 1.0608+0.404 * 1.1198+0.892 * 1.4199+0.115 * 0.7626
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9333+4.679 * -0.0649-0.327 * 0.9472
=-2.27

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $193.0 Mil.
Revenue was 246.767 + 224.897 + 221.322 + 203.391 = $896.4 Mil.
Gross Profit was 169.623 + 144.48 + 146.311 + 133.706 = $594.1 Mil.
Total Current Assets was $260.0 Mil.
Total Assets was $1,835.1 Mil.
Property, Plant and Equipment(Net PPE) was $266.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $117.9 Mil.
Selling, General & Admin. Expense(SGA) was $232.5 Mil.
Total Current Liabilities was $146.1 Mil.
Long-Term Debt was $1,454.1 Mil.
Net Income was 27.174 + 17.282 + 20.321 + 12.907 = $77.7 Mil.
Non Operating Income was -0.134 + -0.115 + -0.15 + -0.118 = $-0.5 Mil.
Cash Flow from Operations was 56.611 + 60.062 + 30.967 + 49.626 = $197.3 Mil.
Accounts Receivable was $127.9 Mil.
Revenue was 192.804 + 157.744 + 146.93 + 133.833 = $631.3 Mil.
Gross Profit was 140.873 + 109.349 + 101.673 + 91.984 = $443.9 Mil.
Total Current Assets was $275.9 Mil.
Total Assets was $1,414.1 Mil.
Property, Plant and Equipment(Net PPE) was $237.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $72.5 Mil.
Selling, General & Admin. Expense(SGA) was $175.4 Mil.
Total Current Liabilities was $97.3 Mil.
Long-Term Debt was $1,204.5 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)
=(192.991 / 896.377) / (127.878 / 631.311)
=0.21530115 / 0.20255944
=1.0629

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)
=(144.48 / 631.311) / (169.623 / 896.377)
=0.70310671 / 0.66280148
=1.0608

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 - (260.028 + 266.583) / 1835.134) / (1 - (275.927 + 237.739) / 1414.102)
=0.71303948 / 0.63675463
=1.1198

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
=896.377 / 631.311
=1.4199

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))
=(72.531 / (72.531 + 237.739)) / (117.851 / (117.851 + 266.583))
=0.23376736 / 0.30655717
=0.7626

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)
=(232.48 / 896.377) / (175.429 / 631.311)
=0.25935516 / 0.27788047
=0.9333

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)
=((1454.075 + 146.061) / 1835.134) / ((1204.529 + 97.266) / 1414.102)
=0.87194505 / 0.92058069
=0.9472

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
=(77.684 - -0.517 - 197.266) / 1835.134
=-0.0649

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.

Nexstar Broadcasting Group Inc has a M-score of -2.27 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.

Nexstar Broadcasting Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.88591.13330.89991.33630.81231.14760.84671.10640.92981.0629
GMI 0.95641.01150.99581.04580.92461.02250.96821.07321.0041.0608
AQI 0.9940.96940.90220.95320.96321.00841.06211.01240.98761.1198
SGI 1.1731.00621.06790.88441.24360.97811.23541.32671.25681.4199
DEPI 1.09450.95191.2851.03371.01721.15491.19790.88920.98780.7626
SGAI 0.99641.01110.97631.12130.90431.06570.90470.96790.92150.9367
LVGI 0.99351.01951.12561.01740.99681.00230.81881.02160.9330.9472
TATA -0.0876-0.0801-0.226-0.0874-0.0875-0.08790.11190.0061-0.0717-0.0649
M-score -2.85-2.75-3.61-2.70-2.88-2.75-1.78-2.03-2.62-2.27

Nexstar Broadcasting Group Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.09831.10640.87640.83560.88980.92981.17791.13071.0971.0629
GMI 1.0361.07321.05961.05061.03721.0041.01511.02121.03681.0608
AQI 1.12071.01240.9691.0060.93480.98761.09791.08031.10071.1198
SGI 1.37781.32671.28671.22531.20041.25681.33761.42331.46091.4199
DEPI 1.09480.88590.82480.94680.98161.13151.1510.99090.89440.7626
SGAI 0.96080.9760.97360.98150.96740.91710.90840.87590.87430.9333
LVGI 0.86611.02161.01661.0020.98910.9330.88750.88570.90750.9472
TATA 0.10520.0061-0.0156-0.0363-0.0389-0.0717-0.0529-0.0502-0.0563-0.0649
M-score -1.43-2.03-2.41-2.57-2.58-2.60-2.15-2.12-2.14-2.27
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