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John Wiley & Sons Inc (NYSE:JW.A)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

JW.A' s 10-Year Beneish M-Score Range
Min: -3.42   Max: -2.13
Current: -2.86

-3.42
-2.13

During the past 13 years, the highest Beneish M-Score of John Wiley & Sons Inc was -2.13. 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 * 0.9183+0.528 * 0.9766+0.404 * 0.9659+0.892 * 1.0082+0.115 * 0.965
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0305+4.679 * -0.061-0.327 * 0.9729
=-2.86

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $150 Mil.
Revenue was 457.089 + 457.933 + 449.153 + 411.02 = $1,775 Mil.
Gross Profit was 330.916 + 327.37 + 318.801 + 291.229 = $1,268 Mil.
Total Current Assets was $790 Mil.
Total Assets was $3,077 Mil.
Property, Plant and Equipment(Net PPE) was $189 Mil.
Depreciation, Depletion and Amortization(DDA) was $103 Mil.
Selling, General & Admin. Expense(SGA) was $969 Mil.
Total Current Liabilities was $730 Mil.
Long-Term Debt was $700 Mil.
Net Income was 35.891 + 52.489 + 36.197 + 35.933 = $161 Mil.
Non Operating Income was -0.337 + 0.029 + -0.581 + 0.881 = $-0 Mil.
Cash Flow from Operations was 194.427 + 220.295 + -9.822 + -56.676 = $348 Mil.
Accounts Receivable was $162 Mil.
Revenue was 445.854 + 472.435 + 431.755 + 410.734 = $1,761 Mil.
Gross Profit was 312.214 + 330.641 + 302.201 + 283.49 = $1,229 Mil.
Total Current Assets was $635 Mil.
Total Assets was $2,806 Mil.
Property, Plant and Equipment(Net PPE) was $190 Mil.
Depreciation, Depletion and Amortization(DDA) was $98 Mil.
Selling, General & Admin. Expense(SGA) was $933 Mil.
Total Current Liabilities was $667 Mil.
Long-Term Debt was $673 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)
=(149.733 / 1775.195) / (161.731 / 1760.778)
=0.08434735 / 0.09185201
=0.9183

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)
=(327.37 / 1760.778) / (330.916 / 1775.195)
=0.69772907 / 0.71446573
=0.9766

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 - (789.662 + 188.718) / 3077.365) / (1 - (634.971 + 189.625) / 2806.375)
=0.68207216 / 0.70617042
=0.9659

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
=1775.195 / 1760.778
=1.0082

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))
=(97.999 / (97.999 + 189.625)) / (103 / (103 + 188.718))
=0.34071913 / 0.35308071
=0.965

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)
=(969.456 / 1775.195) / (933.148 / 1760.778)
=0.5461124 / 0.52996346
=1.0305

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)
=((700.1 + 729.587) / 3077.365) / ((673 + 667.169) / 2806.375)
=0.46458155 / 0.47754452
=0.9729

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
=(160.51 - -0.008 - 348.224) / 3077.365
=-0.061

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 -2.86 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 1.00731.06851.0760.77720.87420.87550.99560.99630.95450.9183
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 -3.14-2.91-2.34-2.58-3.09-2.84-2.81-2.77-2.89-2.86

John Wiley & Sons Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
DSRI 0.92620.99631.00960.981.09260.95450.92650.90380.8670.9183
GMI 0.98810.99350.99831.00650.99820.99640.98750.98280.98280.9766
AQI 0.99830.97780.98261.02791.04611.01041.02730.99461.00620.9659
SGI 1.0231.02310.99930.98780.9980.98770.99871.01730.99691.0082
DEPI 1.02631.0381.04151.04611.01210.92970.92210.88390.90230.965
SGAI 1.0390.98960.990.97310.97881.02451.02221.02831.03621.0305
LVGI 0.91260.98511.01471.06211.04351.08391.07120.97050.93680.9729
TATA -0.0689-0.065-0.057-0.0496-0.0307-0.068-0.08-0.0844-0.0682-0.061
M-score -2.83-2.77-2.74-2.74-2.53-2.89-2.95-2.97-2.93-2.86
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