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Nexstar Broadcasting Group Inc (NAS:NXST)
Beneish M-Score
-2.15 (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 -2.15 signals that the company is a manipulator.

NXST' s 10-Year Beneish M-Score Range
Min: -3.63   Max: -1.32
Current: -2.15

-3.63
-1.32

During the past 13 years, the highest Beneish M-Score of Nexstar Broadcasting Group Inc was -1.32. The lowest was -3.63. And the median was -2.80.


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 * 1.1779+0.528 * 1.0151+0.404 * 1.0979+0.892 * 1.3376+0.115 * 1.151
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9127+4.679 * -0.0529-0.327 * 0.8875
=-2.15

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $164.6 Mil.
Revenue was 203.391 + 192.804 + 157.744 + 146.93 = $700.9 Mil.
Gross Profit was 133.706 + 140.873 + 109.349 + 101.673 = $485.6 Mil.
Total Current Assets was $281.6 Mil.
Total Assets was $1,903.2 Mil.
Property, Plant and Equipment(Net PPE) was $277.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $84.1 Mil.
Selling, General & Admin. Expense(SGA) was $191.0 Mil.
Total Current Liabilities was $136.4 Mil.
Long-Term Debt was $1,526.8 Mil.
Net Income was 12.907 + 30.849 + 15.404 + 10.944 = $70.1 Mil.
Non Operating Income was -0.118 + -0.129 + -0.172 + -0.198 = $-0.6 Mil.
Cash Flow from Operations was 49.626 + 45.885 + 47.222 + 28.689 = $171.4 Mil.
Accounts Receivable was $104.5 Mil.
Revenue was 133.833 + 138.122 + 125.792 + 126.211 = $524.0 Mil.
Gross Profit was 91.984 + 98.246 + 88.522 + 89.75 = $368.5 Mil.
Total Current Assets was $204.5 Mil.
Total Assets was $1,148.8 Mil.
Property, Plant and Equipment(Net PPE) was $205.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $75.0 Mil.
Selling, General & Admin. Expense(SGA) was $156.5 Mil.
Total Current Liabilities was $69.9 Mil.
Long-Term Debt was $1,061.4 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)
=(164.581 / 700.869) / (104.457 / 523.958)
=0.2348242 / 0.1993614
=1.1779

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)
=(140.873 / 523.958) / (133.706 / 700.869)
=0.70330446 / 0.69285558
=1.0151

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 - (281.638 + 277.837) / 1903.151) / (1 - (204.529 + 205.477) / 1148.793)
=0.706027 / 0.64309845
=1.0979

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
=700.869 / 523.958
=1.3376

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))
=(74.972 / (74.972 + 205.477)) / (84.053 / (84.053 + 277.837))
=0.26732846 / 0.23226118
=1.151

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)
=(191.04 / 700.869) / (156.473 / 523.958)
=0.2725759 / 0.29863653
=0.9127

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)
=((1526.83 + 136.413) / 1903.151) / ((1061.378 + 69.854) / 1148.793)
=0.87394169 / 0.98471352
=0.8875

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
=(70.104 - -0.617 - 171.422) / 1903.151
=-0.0529

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 -2.15 signals that the company is likely to 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.0520.89731.13330.89991.33630.81231.14760.84671.10640.9298
GMI 1.04640.96421.01150.99581.04580.92461.02250.96821.07321.004
AQI 1.00080.9940.96940.90220.95320.96321.00841.06211.01240.9619
SGI 0.91751.15831.00621.06790.88441.24360.97811.23541.32671.2568
DEPI 1.03431.09450.95191.2851.03371.1721.00241.19790.77621.1315
SGAI 1.07940.97071.01111.05361.0390.90431.06570.90470.96790.9215
LVGI 1.090.99351.01951.12561.01740.99681.00230.81881.02160.9133
TATA -0.0683-0.0867-0.0829-0.226-0.0874-0.0875-0.08790.11190.0061-0.0693
M-score -2.84-2.84-2.76-3.63-2.69-2.86-2.77-1.78-2.05-2.60

Nexstar Broadcasting Group Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.84671.13241.17751.09831.10640.87640.83560.88980.92981.1779
GMI 0.96820.9871.0081.0361.07321.05961.05061.03721.0041.0151
AQI 1.06211.11441.09761.12071.01240.9691.0060.93480.96191.0979
SGI 1.23541.27171.33281.37781.32671.28671.22531.20041.25681.3376
DEPI 1.19791.32591.23871.20660.77620.73070.84960.89061.13151.151
SGAI 0.90480.9230.93470.96080.96780.96570.97380.96010.92150.9127
LVGI 0.81880.82740.83630.86611.02161.01661.0020.98910.91330.8875
TATA 0.11190.11260.12090.10520.0061-0.0156-0.0363-0.0389-0.0693-0.0529
M-score -1.78-1.44-1.32-1.42-2.05-2.42-2.58-2.59-2.60-2.15
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