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John Wiley & Sons Inc (NYSE:JW.A)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

JW.A' s 10-Year Beneish M-Score Range
Min: -3.42   Max: -2.34
Current: -2.8

-3.42
-2.34

During the past 13 years, the highest Beneish M-Score of John Wiley & Sons Inc was -2.34. 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 * 0.9575+0.528 * 0.9844+0.404 * 1.0103+0.892 * 1.0266+0.115 * 0.9546
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0098+4.679 * -0.0599-0.327 * 1.0416
=-2.80

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
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.
Net Income was 46.897 + 42.548 + 53.777 + 33.646 = $177 Mil.
Non Operating Income was -1.086 + 2.783 + 0.21 + -0.165 = $2 Mil.
Cash Flow from Operations was 200.971 + 248.287 + 8.091 + -102.227 = $355 Mil.
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.



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)
=(147.183 / 1822.44) / (149.733 / 1775.195)
=0.08076151 / 0.08434735
=0.9575

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)
=(341.66 / 1775.195) / (324.802 / 1822.44)
=0.71446573 / 0.72581649
=0.9844

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 - (740.919 + 193.01) / 3004.243) / (1 - (789.662 + 188.718) / 3077.365)
=0.68913001 / 0.68207216
=1.0103

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
=1822.44 / 1775.195
=1.0266

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))
=(103 / (103 + 188.718)) / (113.286 / (113.286 + 193.01))
=0.35308071 / 0.36985792
=0.9546

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)
=(1005 / 1822.44) / (969.456 / 1775.195)
=0.55145848 / 0.5461124
=1.0098

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)
=((650.09 + 803.683) / 3004.243) / ((700.1 + 729.587) / 3077.365)
=0.48390659 / 0.46458155
=1.0416

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
=(176.868 - 1.742 - 355.122) / 3004.243
=-0.0599

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 -2.80 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 1.07151.0760.77720.87420.99080.87980.99630.95450.91830.9575
GMI 0.99121.01980.9671.00310.9910.99280.99350.99640.97660.9844
AQI 1.041.34760.98690.95380.98040.98680.97781.01040.96591.0103
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 0.97851.22750.91631.06120.87590.83990.98511.08390.97291.0416
TATA -0.1203-0.0389-0.0504-0.0905-0.1141-0.0829-0.065-0.068-0.061-0.0599
M-score -2.91-2.34-2.58-3.09-2.94-2.91-2.77-2.89-2.86-2.80

John Wiley & Sons Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.09260.95450.92650.90380.8670.91831.07281.10271.02750.9575
GMI 0.99820.99640.98750.98280.98280.97660.980.98060.97980.9844
AQI 1.04611.01041.02730.99461.00620.96591.00220.99111.0231.0103
SGI 0.9980.98770.99871.01730.99691.00821.02331.02891.04191.0266
DEPI 1.01210.92970.92210.88390.90230.9650.99030.99290.97390.9546
SGAI 0.97881.02451.02221.02831.03621.03051.0231.01911.01551.0098
LVGI 1.04351.08391.07120.97050.93680.97290.99461.06841.05991.0416
TATA -0.0307-0.068-0.08-0.0844-0.0682-0.061-0.0467-0.0496-0.064-0.0599
M-score -2.53-2.89-2.95-2.97-2.93-2.86-2.62-2.63-2.74-2.80
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