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Nexstar Broadcasting Group Inc (NAS:NXST)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

NXST' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Max: -1.33
Current: -2.57

-3.63
-1.33

During the past 13 years, the highest Beneish M-Score of Nexstar Broadcasting Group Inc was -1.33. The lowest was -3.63. And the median was -2.79.


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 * 0.9381+0.528 * 1.048+0.404 * 1.0051+0.892 * 1.2821+0.115 * 0.7846
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9636+4.679 * -0.0641-0.327 * 0.9904
=-2.57

* 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 $206.8 Mil.
Revenue was 261.994 + 255.658 + 246.767 + 224.897 = $989.3 Mil.
Gross Profit was 169.059 + 165.535 + 169.623 + 144.48 = $648.7 Mil.
Total Current Assets was $261.9 Mil.
Total Assets was $1,898.5 Mil.
Property, Plant and Equipment(Net PPE) was $283.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $120.1 Mil.
Selling, General & Admin. Expense(SGA) was $252.6 Mil.
Total Current Liabilities was $156.0 Mil.
Long-Term Debt was $1,461.7 Mil.
Net Income was 24.529 + 21.727 + 27.174 + 17.282 = $90.7 Mil.
Non Operating Income was -0.147 + -0.136 + -0.134 + -0.115 = $-0.5 Mil.
Cash Flow from Operations was 57.778 + 38.431 + 56.611 + 60.062 = $212.9 Mil.
Accounts Receivable was $172.0 Mil.
Revenue was 219.349 + 201.735 + 192.804 + 157.744 = $771.6 Mil.
Gross Profit was 146.311 + 133.706 + 140.873 + 109.349 = $530.2 Mil.
Total Current Assets was $266.9 Mil.
Total Assets was $1,865.7 Mil.
Property, Plant and Equipment(Net PPE) was $276.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $84.0 Mil.
Selling, General & Admin. Expense(SGA) was $204.4 Mil.
Total Current Liabilities was $123.3 Mil.
Long-Term Debt was $1,481.9 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)
=(206.83 / 989.316) / (171.958 / 771.632)
=0.20906364 / 0.22284975
=0.9381

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)
=(530.239 / 771.632) / (648.697 / 989.316)
=0.68716564 / 0.65570253
=1.048

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 - (261.932 + 283.863) / 1898.452) / (1 - (266.911 + 276.191) / 1865.703)
=0.71250524 / 0.70890222
=1.0051

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
=989.316 / 771.632
=1.2821

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))
=(84.004 / (84.004 + 276.191)) / (120.075 / (120.075 + 283.863))
=0.23321812 / 0.29726097
=0.7846

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)
=(252.571 / 989.316) / (204.439 / 771.632)
=0.25529861 / 0.26494365
=0.9636

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)
=((1461.73 + 155.955) / 1898.452) / ((1481.859 + 123.349) / 1865.703)
=0.8521074 / 0.86037703
=0.9904

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
=(90.712 - -0.532 - 212.882) / 1898.452
=-0.0641

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 -2.57 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 0.89731.13330.89991.33630.81231.14760.84671.10640.92981.0629
GMI 0.96421.01150.99581.04580.92461.02250.96821.07321.0041.0608
AQI 0.9940.96940.90220.95320.96321.00841.06211.01240.98761.1198
SGI 1.15831.00621.06790.88441.24360.97811.23541.32671.25681.4199
DEPI 1.09450.95191.2851.03371.1721.00241.04960.88591.13150.7626
SGAI 0.97071.01111.05361.0390.90431.06570.90470.97610.91710.9333
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 -2.85-2.75-3.63-2.69-2.86-2.77-1.80-2.03-2.60-2.27

Nexstar Broadcasting Group Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.87640.83560.88980.92981.18071.1361.10171.06720.89750.9381
GMI 1.05961.05061.03721.0041.01271.01641.03241.05651.05031.048
AQI 0.9691.0060.93480.98761.09791.08031.10071.11981.02571.0051
SGI 1.28671.22531.20041.25681.33451.41671.45461.41411.35391.2821
DEPI 0.82480.94680.98161.13151.20881.08190.89440.76260.75770.7846
SGAI 0.97360.98150.96740.91710.91050.880.87810.93710.93770.9636
LVGI 1.01661.0020.98910.9330.88750.88570.90750.94720.98870.9904
TATA -0.0156-0.0363-0.0389-0.0717-0.0529-0.0502-0.0563-0.0649-0.0523-0.0641
M-score -2.41-2.57-2.58-2.60-2.14-2.11-2.15-2.27-2.48-2.57
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