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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 10-Year Beneish M-Score Range
Min: -3.61   Max: -1.33
Current: -2.57

-3.61
-1.33

During the past 13 years, the highest Beneish M-Score of Nexstar Broadcasting Group Inc was -1.33. The lowest was -3.61. And the median was -2.81.


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 * 0.8898+0.528 * 1.0372+0.404 * 0.9348+0.892 * 1.2004+0.115 * 1.1111
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9603+4.679 * -0.0389-0.327 * 0.9891
=-2.57

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $109.0 Mil.
Revenue was 157.744 + 146.93 + 133.833 + 138.122 = $576.6 Mil.
Gross Profit was 109.349 + 101.673 + 91.984 + 98.246 = $401.3 Mil.
Total Current Assets was $230.1 Mil.
Total Assets was $1,220.1 Mil.
Property, Plant and Equipment(Net PPE) was $215.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $59.9 Mil.
Selling, General & Admin. Expense(SGA) was $168.8 Mil.
Total Current Liabilities was $82.3 Mil.
Long-Term Debt was $1,080.0 Mil.
Net Income was 15.404 + 10.944 + 7.353 + -12.452 = $21.2 Mil.
Non Operating Income was -0.172 + -0.198 + -0.128 + -34.883 = $-35.4 Mil.
Cash Flow from Operations was 47.222 + 28.689 + 44.731 + -16.607 = $104.0 Mil.
Accounts Receivable was $102.1 Mil.
Revenue was 125.792 + 126.211 + 112.205 + 116.174 = $480.4 Mil.
Gross Profit was 88.522 + 89.75 + 78.101 + 90.34 = $346.7 Mil.
Total Current Assets was $149.3 Mil.
Total Assets was $1,148.0 Mil.
Property, Plant and Equipment(Net PPE) was $219.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $69.8 Mil.
Selling, General & Admin. Expense(SGA) was $146.4 Mil.
Total Current Liabilities was $99.0 Mil.
Long-Term Debt was $1,006.7 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)
=(109.017 / 576.629) / (102.064 / 480.382)
=0.18905917 / 0.21246425
=0.8898

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)
=(101.673 / 480.382) / (109.349 / 576.629)
=0.72174436 / 0.69585817
=1.0372

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 - (230.125 + 215.594) / 1220.091) / (1 - (149.317 + 219.263) / 1147.988)
=0.63468381 / 0.67893393
=0.9348

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
=576.629 / 480.382
=1.2004

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))
=(69.831 / (69.831 + 219.263)) / (59.891 / (59.891 + 215.594))
=0.24155119 / 0.21740204
=1.1111

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)
=(168.769 / 576.629) / (146.416 / 480.382)
=0.29268212 / 0.30479077
=0.9603

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)
=((1079.98 + 82.345) / 1220.091) / ((1006.749 + 98.95) / 1147.988)
=0.95265435 / 0.96316251
=0.9891

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
=(21.249 - -35.381 - 104.035) / 1220.091
=-0.0389

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.9411.04920.88591.13330.89991.33630.81231.14760.84671.1064
GMI 0.97961.04660.95641.01150.99581.04580.92461.02250.96821.0732
AQI 0.96911.00080.9940.96940.90220.95320.96320.99361.07781.0124
SGI 1.14650.91991.1731.00621.06790.88441.24360.97811.23541.3267
DEPI 1.1421.03431.09450.95191.2851.03371.01721.15491.19790.8892
SGAI 0.84741.0970.99641.01110.97631.12130.90431.06570.90470.9679
LVGI 1.02521.09790.98641.01951.10871.0330.99680.99410.82561.0216
TATA -0.0662-0.069-0.0867-0.0829-0.226-0.0874-0.0875-0.08580.11190.0061
M-score -2.70-2.85-2.85-2.76-3.61-2.71-2.88-2.75-1.78-2.03

Nexstar Broadcasting Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.06541.01150.84671.13241.17751.09831.10640.87640.83560.8898
GMI 1.01541.00140.96820.9871.0081.0361.07321.05961.05061.0372
AQI 0.97731.00811.07781.11441.09761.12071.01240.9691.0060.9348
SGI 1.05681.09871.23541.27171.33281.37781.32671.28671.22531.2004
DEPI 1.10271.06261.19791.19981.10041.01370.88920.86621.03561.1111
SGAI 1.00710.9570.90470.92280.93460.96060.96790.96580.9740.9603
LVGI 0.97410.94470.82560.82740.83630.86611.02161.01661.0020.9891
TATA -0.0904-0.08010.11190.11260.12090.10520.0061-0.0156-0.0363-0.0389
M-score -2.77-2.72-1.78-1.46-1.33-1.44-2.03-2.41-2.56-2.57
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