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John Wiley & Sons Inc (NYSE:JW.A)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

JW.A' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53   Max: -2.2
Current: -2.74

-3.53
-2.2

During the past 13 years, the highest Beneish M-Score of John Wiley & Sons Inc was -2.20. The lowest was -3.53. 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 * 1.1342+0.528 * 0.9946+0.404 * 0.8926+0.892 * 0.9437+0.115 * 1.0375
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.029+4.679 * -0.0512-0.327 * 1.1282
=-2.74

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $236 Mil.
Revenue was 436.393 + 433.362 + 422.981 + 441.646 = $1,734 Mil.
Gross Profit was 316.167 + 316.598 + 303.252 + 324.802 = $1,261 Mil.
Total Current Assets was $897 Mil.
Total Assets was $3,114 Mil.
Property, Plant and Equipment(Net PPE) was $208 Mil.
Depreciation, Depletion and Amortization(DDA) was $116 Mil.
Selling, General & Admin. Expense(SGA) was $983 Mil.
Total Current Liabilities was $827 Mil.
Long-Term Debt was $815 Mil.
Net Income was 35.518 + 43.6 + 32.457 + 46.897 = $158 Mil.
Non Operating Income was 1.431 + 0.038 + -0.08 + -1.086 = $0 Mil.
Cash Flow from Operations was 243.13 + -2.437 + -124.082 + 200.971 = $318 Mil.
Accounts Receivable was $220 Mil.
Revenue was 465.905 + 476.972 + 437.917 + 457.089 = $1,838 Mil.
Gross Profit was 341.66 + 342.431 + 313.864 + 330.916 = $1,329 Mil.
Total Current Assets was $614 Mil.
Total Assets was $2,894 Mil.
Property, Plant and Equipment(Net PPE) was $188 Mil.
Depreciation, Depletion and Amortization(DDA) was $111 Mil.
Selling, General & Admin. Expense(SGA) was $1,012 Mil.
Total Current Liabilities was $764 Mil.
Long-Term Debt was $588 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)
=(235.806 / 1734.382) / (220.311 / 1837.883)
=0.13595967 / 0.11987216
=1.1342

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)
=(316.598 / 1837.883) / (316.167 / 1734.382)
=0.72304439 / 0.72695577
=0.9946

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 - (896.941 + 207.515) / 3114.408) / (1 - (613.922 + 187.643) / 2894.008)
=0.64537209 / 0.72302599
=0.8926

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
=1734.382 / 1837.883
=0.9437

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))
=(111.422 / (111.422 + 187.643)) / (116.273 / (116.273 + 207.515))
=0.37256784 / 0.35910225
=1.0375

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)
=(982.6 / 1734.382) / (1011.907 / 1837.883)
=0.56654186 / 0.55058293
=1.029

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)
=((814.728 + 826.936) / 3114.408) / ((588.111 + 764.061) / 2894.008)
=0.52711912 / 0.4672316
=1.1282

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
=(158.472 - 0.303 - 317.582) / 3114.408
=-0.0512

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 -2.74 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

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
DSRI 1.07151.0760.77720.87420.87550.99560.99630.95450.91830.9575
GMI 0.99121.01980.9671.00310.9910.99280.99350.99640.97660.9844
AQI 1.041.34760.98690.95380.98370.98360.97781.01040.96591.0103
SGI 1.0721.18271.35530.96281.05441.02561.02310.98771.00821.0266
DEPI 0.90811.08431.23840.98231.0211.00581.0380.92970.9650.9546
SGAI 1.0060.99761.02340.99490.98521.01830.98961.02451.03051.0098
LVGI 0.97851.22750.91631.06120.87340.84230.98511.08390.97291.0416
TATA -0.129-0.0475-0.0504-0.0905-0.0696-0.0829-0.065-0.068-0.061-0.0599
M-score -2.95-2.38-2.58-3.09-2.84-2.81-2.77-2.89-2.86-2.80

John Wiley & Sons Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 0.90380.8670.91831.07281.10271.02750.95750.9960.9311.1342
GMI 0.98280.98280.97660.980.98060.97980.98440.98680.98510.9946
AQI 0.99461.00620.96591.00220.99111.0231.01030.94040.95350.8926
SGI 1.01730.99691.00821.02331.02891.04191.02661.0030.96390.9437
DEPI 0.88390.90230.9650.99030.99290.97390.95460.95791.011.0375
SGAI 1.02831.03621.03051.0231.01911.01551.00981.00871.01921.029
LVGI 0.97050.93680.97290.99461.06841.05991.04161.05871.05351.1282
TATA -0.0844-0.0682-0.061-0.0467-0.0496-0.064-0.0599-0.0535-0.0551-0.0512
M-score -2.97-2.93-2.86-2.62-2.63-2.74-2.80-2.79-2.88-2.74
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