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Nexstar Broadcasting Group Inc (NAS:NXST)
Beneish M-Score
-2.03 (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 -2.03 signals that the company is a manipulator.

NXST' s 10-Year Beneish M-Score Range
Min: -3.63   Max: -1.78
Current: -2.03

-3.63
-1.78

During the past 13 years, the highest Beneish M-Score of Nexstar Broadcasting Group Inc was -1.78. The lowest was -3.63. And the median was -2.77.


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 * 1.1064+0.528 * 1.0732+0.404 * 1.0124+0.892 * 1.3267+0.115 * 0.8892
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9677+4.679 * 0.0061-0.327 * 1.0216
=-2.03

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $109.4 Mil.
Revenue was 138.122 + 125.792 + 126.211 + 112.205 = $502.3 Mil.
Gross Profit was 98.246 + 88.522 + 89.75 + 78.101 = $354.6 Mil.
Total Current Assets was $201.2 Mil.
Total Assets was $1,163.7 Mil.
Property, Plant and Equipment(Net PPE) was $212.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $63.7 Mil.
Selling, General & Admin. Expense(SGA) was $150.9 Mil.
Total Current Liabilities was $83.9 Mil.
Long-Term Debt was $1,064.3 Mil.
Net Income was -12.452 + 3.595 + 6.367 + 0.705 = $-1.8 Mil.
Non Operating Income was -34.883 + -1.132 + -0.084 + -0.084 = $-36.2 Mil.
Cash Flow from Operations was -18.389 + 31.894 + 0.729 + 13.105 = $27.3 Mil.
Accounts Receivable was $74.6 Mil.
Revenue was 116.174 + 89.952 + 88.864 + 83.642 = $378.6 Mil.
Gross Profit was 90.34 + 68.002 + 67.012 + 61.514 = $286.9 Mil.
Total Current Assets was $163.3 Mil.
Total Assets was $945.8 Mil.
Property, Plant and Equipment(Net PPE) was $180.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.5 Mil.
Selling, General & Admin. Expense(SGA) was $117.6 Mil.
Total Current Liabilities was $58.0 Mil.
Long-Term Debt was $855.5 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)
=(109.43 / 502.33) / (74.553 / 378.632)
=0.21784484 / 0.19690095
=1.1064

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)
=(88.522 / 378.632) / (98.246 / 502.33)
=0.75764331 / 0.70594828
=1.0732

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 - (201.166 + 212.259) / 1163.722) / (1 - (163.326 + 180.162) / 945.815)
=0.64473904 / 0.63683384
=1.0124

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
=502.33 / 378.632
=1.3267

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))
=(46.549 / (46.549 + 180.162)) / (63.726 / (63.726 + 212.259))
=0.20532308 / 0.23090385
=0.8892

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)
=(150.926 / 502.33) / (117.554 / 378.632)
=0.30045189 / 0.31047032
=0.9677

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)
=((1064.262 + 83.922) / 1163.722) / ((855.467 + 58.003) / 945.815)
=0.98664801 / 0.96580198
=1.0216

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
=(-1.785 - -36.183 - 27.339) / 1163.722
=0.0061

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 -2.03 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.92671.0520.90181.13470.89431.33630.81231.14760.84671.1064
GMI 0.97181.04640.96421.01150.99581.04580.92461.02250.96821.0732
AQI 0.96911.00080.9940.96940.90220.95320.96321.00841.06211.0124
SGI 1.16420.91751.15831.00621.06790.88441.24360.97811.23541.3267
DEPI 1.1421.03431.09450.95191.2851.03371.1721.00241.19790.8892
SGAI 0.88391.07940.97071.01111.05361.0390.90431.06570.90470.9679
LVGI 1.02521.090.99351.01951.12561.01740.99681.00230.81881.0216
TATA -0.065-0.0683-0.0867-0.0829-0.226-0.0874-0.0875-0.08790.11190.0061
M-score -2.70-2.84-2.84-2.76-3.63-2.69-2.86-2.77-1.78-2.03

Nexstar Broadcasting Group Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.93451.14761.08361.06541.01150.84671.13241.17751.09831.1064
GMI 0.97391.02251.02071.01541.00140.96820.9871.0081.0361.0732
AQI 0.99311.00840.99510.97731.00811.06211.11441.09761.12071.0124
SGI 1.09330.97811.01751.05681.09871.23541.27171.33281.37781.3267
DEPI 1.01921.00240.91720.96160.92881.19791.32591.23871.20660.8892
SGAI 1.01051.06571.02711.00710.95690.90480.92290.93470.96080.9677
LVGI 0.97921.00230.98210.97410.94470.81880.82740.83630.86611.0216
TATA -0.0794-0.0879-0.0872-0.0904-0.08010.11190.11260.1190.10360.0061
M-score -2.84-2.77-2.79-2.79-2.73-1.78-1.44-1.33-1.43-2.03
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