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Nexstar Broadcasting Group Inc (NAS:NXST)
Beneish M-Score
-2.60 (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 -2.60 suggests that the company is not a manipulator.

NXST' s 10-Year Beneish M-Score Range
Min: -3.63   Max: -1.78
Current: -2.6

-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 * 0.9298+0.528 * 1.004+0.404 * 0.9619+0.892 * 1.2568+0.115 * 1.1315
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9215+4.679 * -0.0693-0.327 * 0.9133
=-2.60

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $127.9 Mil.
Revenue was 192.804 + 157.744 + 146.93 + 133.833 = $631.3 Mil.
Gross Profit was 140.873 + 109.349 + 101.673 + 91.984 = $443.9 Mil.
Total Current Assets was $317.7 Mil.
Total Assets was $1,462.2 Mil.
Property, Plant and Equipment(Net PPE) was $237.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $72.5 Mil.
Selling, General & Admin. Expense(SGA) was $174.8 Mil.
Total Current Liabilities was $97.3 Mil.
Long-Term Debt was $1,220.3 Mil.
Net Income was 30.849 + 15.404 + 10.944 + 7.353 = $64.6 Mil.
Non Operating Income was -0.129 + -0.172 + -0.198 + -0.128 = $-0.6 Mil.
Cash Flow from Operations was 45.885 + 47.222 + 28.689 + 44.731 = $166.5 Mil.
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 $76.3 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.



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)
=(127.878 / 631.311) / (109.43 / 502.33)
=0.20255944 / 0.21784484
=0.9298

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)
=(109.349 / 502.33) / (140.873 / 631.311)
=0.70594828 / 0.70310671
=1.004

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 - (317.664 + 237.739) / 1462.225) / (1 - (201.166 + 212.259) / 1163.722)
=0.62016584 / 0.64473904
=0.9619

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
=631.311 / 502.33
=1.2568

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))
=(76.339 / (76.339 + 212.259)) / (72.531 / (72.531 + 237.739))
=0.26451673 / 0.23376736
=1.1315

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)
=(174.791 / 631.311) / (150.933 / 502.33)
=0.27686988 / 0.30046583
=0.9215

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)
=((1220.304 + 97.266) / 1462.225) / ((1064.262 + 83.922) / 1163.722)
=0.901072 / 0.98664801
=0.9133

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
=(64.55 - -0.627 - 166.527) / 1462.225
=-0.0693

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 -2.60 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

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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.01150.84671.13241.17751.09831.10640.87640.83560.88980.9298
GMI 1.00140.96820.9871.0081.0361.07321.05961.05061.03721.004
AQI 1.00811.06211.11441.09761.12071.01240.9691.0060.93480.9619
SGI 1.09871.23541.27171.33281.37781.32671.28671.22531.20041.2568
DEPI 0.92881.19791.32591.23871.20660.77620.73070.84960.89061.1315
SGAI 0.95690.90480.9230.93470.96080.96780.96570.97380.96010.9215
LVGI 0.94470.81880.82740.83630.86611.02161.01661.0020.98910.9133
TATA -0.08010.11190.11260.12090.10520.0061-0.0156-0.0363-0.0389-0.0693
M-score -2.73-1.78-1.44-1.32-1.42-2.05-2.42-2.58-2.59-2.60
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