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Nexstar Broadcasting Group Inc (NAS:NXST)
Beneish M-Score
-2.39 (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 -2.39 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: -2.39

-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 * 0.9823+0.528 * 1.04+0.404 * 1.1518+0.892 * 1.2493+0.115 * 0.8372
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9572+4.679 * -0.0414-0.327 * 0.9905
=-2.39

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $214 Mil.
Revenue was 275.659 + 261.994 + 255.658 + 252.262 = $1,046 Mil.
Gross Profit was 174.915 + 169.059 + 165.535 + 169.623 = $679 Mil.
Total Current Assets was $287 Mil.
Total Assets was $2,921 Mil.
Property, Plant and Equipment(Net PPE) was $284 Mil.
Depreciation, Depletion and Amortization(DDA) was $120 Mil.
Selling, General & Admin. Expense(SGA) was $260 Mil.
Total Current Liabilities was $181 Mil.
Long-Term Debt was $2,320 Mil.
Net Income was 24.799 + 24.529 + 21.727 + 27.174 = $98 Mil.
Non Operating Income was -0.126 + -0.147 + -0.136 + -0.134 = $-1 Mil.
Cash Flow from Operations was 66.785 + 57.778 + 38.431 + 56.611 = $220 Mil.
Accounts Receivable was $175 Mil.
Revenue was 223.031 + 219.349 + 201.735 + 192.804 = $837 Mil.
Gross Profit was 144.48 + 146.311 + 133.706 + 140.873 = $565 Mil.
Total Current Assets was $289 Mil.
Total Assets was $1,860 Mil.
Property, Plant and Equipment(Net PPE) was $272 Mil.
Depreciation, Depletion and Amortization(DDA) was $90 Mil.
Selling, General & Admin. Expense(SGA) was $217 Mil.
Total Current Liabilities was $143 Mil.
Long-Term Debt was $1,465 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)
=(214.404 / 1045.573) / (174.709 / 836.919)
=0.20505885 / 0.20875258
=0.9823

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)
=(565.37 / 836.919) / (679.132 / 1045.573)
=0.6755373 / 0.64953093
=1.04

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 - (287.021 + 283.6) / 2920.696) / (1 - (289.153 + 271.567) / 1860.206)
=0.80462842 / 0.69857102
=1.1518

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
=1045.573 / 836.919
=1.2493

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))
=(90.028 / (90.028 + 271.567)) / (120.03 / (120.03 + 283.6))
=0.24897468 / 0.29737631
=0.8372

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)
=(259.747 / 1045.573) / (217.213 / 836.919)
=0.2484255 / 0.25953886
=0.9572

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)
=((2320.077 + 181.15) / 2920.696) / ((1465.251 + 143.018) / 1860.206)
=0.85638047 / 0.864565
=0.9905

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
=(98.229 - -0.543 - 219.605) / 2920.696
=-0.0414

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 -2.39 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.83560.88980.92981.18071.1361.10421.06290.89410.93470.9823
GMI 1.05061.03721.0041.01271.01641.03011.06081.05441.05181.04
AQI 1.0060.93480.98761.09791.08031.10071.11981.02571.00511.1518
SGI 1.22531.20041.25681.33451.41671.45141.41991.35911.28681.2493
DEPI 0.94680.98161.13151.20881.08191.01080.76260.75770.78460.8372
SGAI 0.98150.96740.91710.91050.880.88010.93330.93420.96010.9572
LVGI 1.0020.98910.9330.88750.88570.90750.94720.98870.99040.9905
TATA -0.0363-0.0389-0.0717-0.0529-0.0502-0.0563-0.0649-0.0523-0.0641-0.0414
M-score -2.57-2.58-2.60-2.14-2.11-2.14-2.27-2.48-2.57-2.39
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