Switch to:
Nexstar Broadcasting Group Inc (NAS:NXST)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

NXST' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Max: -1.34
Current: -2.48

-3.63
-1.34

During the past 13 years, the highest Beneish M-Score of Nexstar Broadcasting Group Inc was -1.34. The lowest was -3.63. And the median was -2.78.


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 * 0.8957+0.528 * 1.0525+0.404 * 1.0257+0.892 * 1.3567+0.115 * 0.7577
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9389+4.679 * -0.0523-0.327 * 0.9887
=-2.48

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $200.0 Mil.
Revenue was 255.658 + 246.767 + 224.897 + 221.322 = $948.6 Mil.
Gross Profit was 165.535 + 169.623 + 144.48 + 146.311 = $625.9 Mil.
Total Current Assets was $234.3 Mil.
Total Assets was $1,892.2 Mil.
Property, Plant and Equipment(Net PPE) was $287.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $118.6 Mil.
Selling, General & Admin. Expense(SGA) was $243.4 Mil.
Total Current Liabilities was $145.1 Mil.
Long-Term Debt was $1,489.9 Mil.
Net Income was 21.727 + 27.174 + 17.282 + 20.321 = $86.5 Mil.
Non Operating Income was -0.136 + -0.134 + -0.115 + -0.15 = $-0.5 Mil.
Cash Flow from Operations was 38.431 + 56.611 + 60.062 + 30.967 = $186.1 Mil.
Accounts Receivable was $164.6 Mil.
Revenue was 201.735 + 192.804 + 157.744 + 146.93 = $699.2 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 $78.9 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.



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)
=(199.999 / 948.644) / (164.581 / 699.213)
=0.21082619 / 0.23538035
=0.8957

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)
=(169.623 / 699.213) / (165.535 / 948.644)
=0.69449653 / 0.65983551
=1.0525

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 - (234.327 + 287.655) / 1892.185) / (1 - (281.638 + 277.837) / 1903.151)
=0.72413797 / 0.706027
=1.0257

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
=948.644 / 699.213
=1.3567

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))
=(78.891 / (78.891 + 277.837)) / (118.556 / (118.556 + 287.655))
=0.22115169 / 0.29185817
=0.7577

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)
=(243.356 / 948.644) / (191.04 / 699.213)
=0.25653037 / 0.27322146
=0.9389

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)
=((1489.899 + 145.111) / 1892.185) / ((1526.83 + 136.413) / 1903.151)
=0.8640857 / 0.87394169
=0.9887

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
=(86.504 - -0.535 - 186.071) / 1892.185
=-0.0523

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 -2.48 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 0.9940.96940.90220.95320.96320.99361.07781.01240.96191.1498
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 0.99351.01951.12561.01740.99680.99410.82561.02160.91330.9677
TATA -0.0876-0.0801-0.226-0.0874-0.0875-0.08580.11190.0061-0.0693-0.0649
M-score -2.85-2.75-3.61-2.70-2.88-2.75-1.78-2.03-2.61-2.26

Nexstar Broadcasting Group Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.10640.87640.83560.88980.92981.18071.13311.09911.06490.8957
GMI 1.07321.05961.05061.03721.0041.01271.0191.03481.05891.0525
AQI 1.01240.9691.0060.93480.96191.09791.08031.10071.14981.0257
SGI 1.32671.28671.22531.20041.25681.33451.42031.45811.41721.3567
DEPI 0.88920.86621.03561.11110.98781.05280.85880.77270.76260.7577
SGAI 0.96790.96590.9740.96030.92150.91490.88190.88010.93850.9389
LVGI 1.02161.01661.0020.98910.91330.88750.88570.90750.96770.9887
TATA 0.0061-0.0156-0.0346-0.0374-0.0693-0.0529-0.0502-0.0563-0.0649-0.0523
M-score -2.03-2.41-2.56-2.56-2.61-2.16-2.13-2.16-2.27-2.48
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK