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John Wiley & Sons Inc (NYSE:JW.A)
Beneish M-Score
-2.66 (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.

John Wiley & Sons Inc has a M-score of -2.66 suggests that the company is not a manipulator.

JW.A' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53   Max: -2.38
Current: -2.66

-3.53
-2.38

During the past 13 years, the highest Beneish M-Score of John Wiley & Sons Inc was -2.38. The lowest was -3.53. 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 John Wiley & Sons 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 * 1.2019+0.528 * 0.994+0.404 * 1.0112+0.892 * 0.9477+0.115 * 1.0535
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0444+4.679 * -0.0701-0.327 * 0.9811
=-2.66

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $168 Mil.
Revenue was 434.301 + 436.393 + 433.362 + 422.981 = $1,727 Mil.
Gross Profit was 325.103 + 316.167 + 316.598 + 303.252 = $1,261 Mil.
Total Current Assets was $671 Mil.
Total Assets was $2,921 Mil.
Property, Plant and Equipment(Net PPE) was $215 Mil.
Depreciation, Depletion and Amortization(DDA) was $116 Mil.
Selling, General & Admin. Expense(SGA) was $995 Mil.
Total Current Liabilities was $782 Mil.
Long-Term Debt was $605 Mil.
Net Income was 34.207 + 35.518 + 43.6 + 32.457 = $146 Mil.
Non Operating Income was -0.916 + 1.431 + 0.038 + -0.08 = $0 Mil.
Cash Flow from Operations was 233.346 + 243.13 + -2.437 + -124.082 = $350 Mil.
Accounts Receivable was $147 Mil.
Revenue was 441.646 + 465.905 + 476.972 + 437.917 = $1,822 Mil.
Gross Profit was 324.802 + 341.66 + 342.431 + 313.864 = $1,323 Mil.
Total Current Assets was $741 Mil.
Total Assets was $3,004 Mil.
Property, Plant and Equipment(Net PPE) was $193 Mil.
Depreciation, Depletion and Amortization(DDA) was $113 Mil.
Selling, General & Admin. Expense(SGA) was $1,005 Mil.
Total Current Liabilities was $804 Mil.
Long-Term Debt was $650 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)
=(167.638 / 1727.037) / (147.183 / 1822.44)
=0.09706683 / 0.08076151
=1.2019

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)
=(1322.757 / 1822.44) / (1261.12 / 1727.037)
=0.72581649 / 0.73022176
=0.994

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 - (670.679 + 214.77) / 2921.096) / (1 - (740.919 + 193.01) / 3004.243)
=0.69687782 / 0.68913001
=1.0112

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
=1727.037 / 1822.44
=0.9477

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))
=(113.286 / (113.286 + 193.01)) / (116.191 / (116.191 + 214.77))
=0.36985792 / 0.35107158
=1.0535

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)
=(994.632 / 1727.037) / (1005 / 1822.44)
=0.57591818 / 0.55145848
=1.0444

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)
=((605.007 + 781.807) / 2921.096) / ((650.09 + 803.683) / 3004.243)
=0.4747581 / 0.48390659
=0.9811

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
=(145.782 - 0.473 - 349.957) / 2921.096
=-0.0701

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.

John Wiley & Sons Inc has a M-score of -2.66 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.

John Wiley & Sons Inc Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
DSRI 1.0760.77720.87420.87550.99560.99630.95450.91830.95751.2019
GMI 1.01980.9671.00310.9910.99280.99350.99640.97660.98440.994
AQI 1.34760.98690.95380.98370.98360.97781.01040.96591.01031.0112
SGI 1.18271.35530.96281.05441.02561.02310.98771.00821.02660.9477
DEPI 1.08431.23840.98231.0211.00581.0380.92970.9650.95461.0535
SGAI 0.99761.02340.99490.98521.01830.98961.02451.03051.00981.0444
LVGI 1.22750.91631.06120.87340.84230.98511.08390.97291.04160.9811
TATA -0.0475-0.0504-0.0905-0.0696-0.0829-0.065-0.068-0.061-0.0599-0.0701
M-score -2.38-2.58-3.09-2.84-2.81-2.77-2.89-2.86-2.80-2.66

John Wiley & Sons Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 0.8670.91831.07281.10271.02750.95750.9960.9311.13421.2019
GMI 0.98280.97660.980.98060.97980.98440.98680.98510.99460.994
AQI 1.00620.96591.00220.99111.0231.01030.94040.95350.89261.0112
SGI 0.99691.00821.02331.02891.04191.02661.0030.96390.94370.9477
DEPI 0.90230.9650.99030.99290.97390.95460.95791.011.03751.0535
SGAI 1.03621.03051.0231.01911.01551.00981.00871.01921.0291.0444
LVGI 0.93680.97290.99461.06841.05991.04161.05871.05351.12820.9811
TATA -0.0682-0.061-0.0467-0.0496-0.064-0.0599-0.0535-0.0551-0.0512-0.0701
M-score -2.93-2.86-2.62-2.63-2.74-2.80-2.79-2.88-2.74-2.66
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