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John Wiley & Sons Inc (NYSE:JW.A)
Beneish M-Score
-2.88 (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 -2.88 suggests that the company is not a manipulator.

JW.A' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53   Max: -2.11
Current: -2.88

-3.53
-2.11

During the past 13 years, the highest Beneish M-Score of John Wiley & Sons Inc was -2.11. 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 * 0.931+0.528 * 0.9851+0.404 * 0.9535+0.892 * 0.9639+0.115 * 1.01
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0192+4.679 * -0.0551-0.327 * 1.0535
=-2.88

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $183 Mil.
Revenue was 433.362 + 422.981 + 441.646 + 465.905 = $1,764 Mil.
Gross Profit was 316.598 + 303.252 + 324.802 + 341.66 = $1,286 Mil.
Total Current Assets was $619 Mil.
Total Assets was $2,883 Mil.
Property, Plant and Equipment(Net PPE) was $205 Mil.
Depreciation, Depletion and Amortization(DDA) was $115 Mil.
Selling, General & Admin. Expense(SGA) was $982 Mil.
Total Current Liabilities was $593 Mil.
Long-Term Debt was $739 Mil.
Net Income was 43.6 + 32.457 + 46.897 + 42.548 = $166 Mil.
Non Operating Income was 0.038 + -0.08 + -1.086 + 2.783 = $2 Mil.
Cash Flow from Operations was -2.437 + -124.082 + 200.971 + 248.287 = $323 Mil.
Accounts Receivable was $204 Mil.
Revenue was 476.972 + 437.917 + 457.089 + 457.933 = $1,830 Mil.
Gross Profit was 342.431 + 313.864 + 330.916 + 327.37 = $1,315 Mil.
Total Current Assets was $541 Mil.
Total Assets was $2,913 Mil.
Property, Plant and Equipment(Net PPE) was $191 Mil.
Depreciation, Depletion and Amortization(DDA) was $108 Mil.
Selling, General & Admin. Expense(SGA) was $1,000 Mil.
Total Current Liabilities was $528 Mil.
Long-Term Debt was $750 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)
=(183.447 / 1763.894) / (204.424 / 1829.911)
=0.10400115 / 0.11171254
=0.931

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)
=(303.252 / 1829.911) / (316.598 / 1763.894)
=0.71838521 / 0.72924563
=0.9851

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 - (618.787 + 205.362) / 2882.827) / (1 - (540.51 + 190.811) / 2912.775)
=0.71411777 / 0.74892637
=0.9535

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
=1763.894 / 1829.911
=0.9639

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))
=(108.454 / (108.454 + 190.811)) / (114.914 / (114.914 + 205.362))
=0.36240122 / 0.35879679
=1.01

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)
=(982.423 / 1763.894) / (999.997 / 1829.911)
=0.55696261 / 0.54647303
=1.0192

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)
=((739.051 + 593.399) / 2882.827) / ((749.513 + 528.4) / 2912.775)
=0.46220255 / 0.43872699
=1.0535

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
=(165.502 - 1.655 - 322.739) / 2882.827
=-0.0551

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 -2.88 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 -0.1203-0.0389-0.0504-0.0905-0.0696-0.0829-0.065-0.068-0.061-0.0599
M-score -2.91-2.34-2.58-3.09-2.84-2.81-2.77-2.89-2.86-2.80

John Wiley & Sons Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 0.92650.90380.8670.91831.07281.10271.02750.95750.9960.931
GMI 0.98750.98280.98280.97660.980.98060.97980.98440.98680.9851
AQI 1.02730.99461.00620.96591.00220.99111.0231.01030.94040.9535
SGI 0.99871.01730.99691.00821.02331.02891.04191.02661.0030.9639
DEPI 0.92210.88390.90230.9650.99030.99290.97390.95460.95791.01
SGAI 1.02221.02831.03621.03051.0231.01911.01551.00981.00871.0192
LVGI 1.07120.97050.93680.97290.99461.06841.05991.04161.05871.0535
TATA -0.08-0.0844-0.0682-0.061-0.0467-0.0496-0.064-0.0599-0.0535-0.0551
M-score -2.95-2.97-2.93-2.86-2.62-2.63-2.74-2.80-2.79-2.88
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