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John Wiley & Sons Inc (NYSE:JW.A)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

JW.A' s 10-Year Beneish M-Score Range
Min: -3.42   Max: -2.11
Current: -2.63

-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 * 1.1027+0.528 * 0.9806+0.404 * 0.9911+0.892 * 1.0289+0.115 * 0.9929
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0191+4.679 * -0.0496-0.327 * 1.0684
=-2.63

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
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.
Net Income was 53.777 + 33.646 + 35.891 + 52.489 = $176 Mil.
Non Operating Income was 0.21 + -0.165 + -0.337 + 0.029 = $-0 Mil.
Cash Flow from Operations was 8.091 + -102.227 + 194.427 + 220.295 = $321 Mil.
Accounts Receivable was $180 Mil.
Revenue was 449.153 + 411.02 + 445.854 + 472.435 = $1,778 Mil.
Gross Profit was 318.801 + 291.229 + 312.214 + 330.641 = $1,253 Mil.
Total Current Assets was $464 Mil.
Total Assets was $2,650 Mil.
Property, Plant and Equipment(Net PPE) was $184 Mil.
Depreciation, Depletion and Amortization(DDA) was $103 Mil.
Selling, General & Admin. Expense(SGA) was $954 Mil.
Total Current Liabilities was $441 Mil.
Long-Term Debt was $648 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)
=(204.424 / 1829.911) / (180.175 / 1778.462)
=0.11171254 / 0.10130945
=1.1027

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)
=(313.864 / 1778.462) / (342.431 / 1829.911)
=0.70447668 / 0.71838521
=0.9806

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 - (540.51 + 190.811) / 2912.775) / (1 - (463.582 + 184.05) / 2650.461)
=0.74892637 / 0.75565307
=0.9911

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
=1829.911 / 1778.462
=1.0289

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))
=(103.448 / (103.448 + 184.05)) / (108.454 / (108.454 + 190.811))
=0.35982163 / 0.36240122
=0.9929

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)
=(999.997 / 1829.911) / (953.693 / 1778.462)
=0.54647303 / 0.53624592
=1.0191

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)
=((749.513 + 528.4) / 2912.775) / ((647.9 + 440.513) / 2650.461)
=0.43872699 / 0.41065045
=1.0684

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
=(175.803 - -0.263 - 320.586) / 2912.775
=-0.0496

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 -2.63 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

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 1.00960.981.09260.95450.92650.90380.8670.91831.07281.1027
GMI 0.99831.00650.99820.99640.98750.98280.98280.97660.980.9806
AQI 0.98261.02791.04611.01041.02730.99461.00620.96591.00220.9911
SGI 0.99930.98780.9980.98770.99871.01730.99691.00821.02331.0289
DEPI 1.04151.04611.01210.92970.92210.88390.90230.9650.99030.9929
SGAI 0.990.97310.97881.02451.02221.02831.03621.03051.0231.0191
LVGI 1.01471.06211.04351.08391.07120.97050.93680.97290.99461.0684
TATA -0.057-0.0496-0.0307-0.068-0.08-0.0844-0.0682-0.061-0.0467-0.0496
M-score -2.74-2.74-2.53-2.89-2.95-2.97-2.93-2.86-2.62-2.63
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