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John Wiley & Sons Inc (NYSE:JW.A)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

JW.A' s 10-Year Beneish M-Score Range
Min: -3.42   Max: -2.11
Current: -2.62

-3.42
-2.11

During the past 13 years, the highest Beneish M-Score of John Wiley & Sons Inc was -2.11. The lowest was -3.42. And the median was -2.82.


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 * 1.0728+0.528 * 0.98+0.404 * 1.0022+0.892 * 1.0233+0.115 * 0.9903
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.023+4.679 * -0.0467-0.327 * 0.9946
=-2.62

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $203 Mil.
Revenue was 437.917 + 457.089 + 457.933 + 449.153 = $1,802 Mil.
Gross Profit was 313.864 + 330.916 + 327.37 + 318.801 = $1,291 Mil.
Total Current Assets was $602 Mil.
Total Assets was $3,069 Mil.
Property, Plant and Equipment(Net PPE) was $195 Mil.
Depreciation, Depletion and Amortization(DDA) was $105 Mil.
Selling, General & Admin. Expense(SGA) was $984 Mil.
Total Current Liabilities was $583 Mil.
Long-Term Debt was $788 Mil.
Net Income was 33.646 + 35.891 + 52.489 + 36.197 = $158 Mil.
Non Operating Income was -0.165 + -0.337 + 0.029 + -0.581 = $-1 Mil.
Cash Flow from Operations was -102.227 + 194.427 + 220.295 + -9.822 = $303 Mil.
Accounts Receivable was $185 Mil.
Revenue was 411.02 + 445.854 + 472.435 + 431.755 = $1,761 Mil.
Gross Profit was 291.229 + 312.214 + 330.641 + 302.201 = $1,236 Mil.
Total Current Assets was $504 Mil.
Total Assets was $2,656 Mil.
Property, Plant and Equipment(Net PPE) was $190 Mil.
Depreciation, Depletion and Amortization(DDA) was $101 Mil.
Selling, General & Admin. Expense(SGA) was $940 Mil.
Total Current Liabilities was $533 Mil.
Long-Term Debt was $660 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)
=(202.77 / 1802.092) / (184.714 / 1761.064)
=0.11251923 / 0.10488773
=1.0728

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)
=(330.916 / 1761.064) / (313.864 / 1802.092)
=0.70201026 / 0.71636243
=0.98

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 - (601.761 + 195.27) / 3069.036) / (1 - (504.415 + 189.725) / 2656.284)
=0.74029923 / 0.73868005
=1.0022

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
=1802.092 / 1761.064
=1.0233

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))
=(100.703 / (100.703 + 189.725)) / (105.211 / (105.211 + 195.27))
=0.34673998 / 0.35014194
=0.9903

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)
=(984.195 / 1802.092) / (940.157 / 1761.064)
=0.54614026 / 0.53385737
=1.023

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)
=((788.013 + 583.167) / 3069.036) / ((660 + 533.208) / 2656.284)
=0.44677873 / 0.44920197
=0.9946

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
=(158.223 - -1.054 - 302.673) / 3069.036
=-0.0467

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 -2.62 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

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
DSRI 1.02621.07151.0760.77720.87420.87550.99560.99630.95450.9183
GMI 0.99850.99121.01980.9671.00310.9910.99280.99350.99640.9766
AQI 0.9931.041.34760.98690.95380.98370.98360.97781.01040.9659
SGI 1.05541.0721.18271.35530.96281.05441.02561.02310.98771.0082
DEPI 0.93530.90811.08431.23840.98231.0211.00581.0380.92970.965
SGAI 0.99111.0060.99761.02340.99490.98521.01830.98961.02451.0305
LVGI 1.03870.97851.22750.91631.06120.87340.84230.98511.08390.9729
TATA -0.1491-0.1203-0.0389-0.0504-0.0905-0.0696-0.0829-0.065-0.068-0.061
M-score -3.13-2.91-2.34-2.58-3.09-2.84-2.81-2.77-2.89-2.86

John Wiley & Sons Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.99631.00960.981.09260.95450.92650.90380.8670.91831.0728
GMI 0.99350.99831.00650.99820.99640.98750.98280.98280.97660.98
AQI 0.97780.98261.02791.04611.01041.02730.99461.00620.96591.0022
SGI 1.02310.99930.98780.9980.98770.99871.01730.99691.00821.0233
DEPI 1.0381.04151.04611.01210.92970.92210.88390.90230.9650.9903
SGAI 0.98960.990.97310.97881.02451.02221.02831.03621.03051.023
LVGI 0.98511.01471.06211.04351.08391.07120.97050.93680.97290.9946
TATA -0.065-0.057-0.0496-0.0307-0.068-0.08-0.0844-0.0682-0.061-0.0467
M-score -2.77-2.74-2.74-2.53-2.89-2.95-2.97-2.93-2.86-2.62
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