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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 10-Year Beneish M-Score Range
Min: -3.42   Max: -2.11
Current: -2.74

-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 * 1.0275+0.528 * 0.9798+0.404 * 1.023+0.892 * 1.0419+0.115 * 0.9739
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0155+4.679 * -0.064-0.327 * 1.0599
=-2.74

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
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.
Net Income was 42.548 + 53.777 + 33.646 + 35.891 = $166 Mil.
Non Operating Income was 2.783 + 0.21 + -0.165 + -0.337 = $2 Mil.
Cash Flow from Operations was 248.287 + 8.091 + -102.227 + 194.427 = $349 Mil.
Accounts Receivable was $206 Mil.
Revenue was 457.933 + 449.153 + 411.02 + 445.854 = $1,764 Mil.
Gross Profit was 327.37 + 318.801 + 291.229 + 312.214 = $1,250 Mil.
Total Current Assets was $661 Mil.
Total Assets was $2,873 Mil.
Property, Plant and Equipment(Net PPE) was $181 Mil.
Depreciation, Depletion and Amortization(DDA) was $103 Mil.
Selling, General & Admin. Expense(SGA) was $956 Mil.
Total Current Liabilities was $633 Mil.
Long-Term Debt was $634 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)
=(220.311 / 1837.883) / (205.796 / 1763.96)
=0.11987216 / 0.11666704
=1.0275

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)
=(342.431 / 1763.96) / (341.66 / 1837.883)
=0.70841402 / 0.72304439
=0.9798

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 - (613.922 + 187.643) / 2894.008) / (1 - (661.489 + 181.092) / 2873.246)
=0.72302599 / 0.70674944
=1.023

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
=1837.883 / 1763.96
=1.0419

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))
=(103.133 / (103.133 + 181.092)) / (111.422 / (111.422 + 187.643))
=0.36285689 / 0.37256784
=0.9739

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)
=(1011.907 / 1837.883) / (956.405 / 1763.96)
=0.55058293 / 0.542192
=1.0155

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)
=((588.111 + 764.061) / 2894.008) / ((634 + 632.554) / 2873.246)
=0.4672316 / 0.44080945
=1.0599

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
=(165.862 - 2.491 - 348.578) / 2894.008
=-0.064

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

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

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 0.981.09260.95450.92650.90380.8670.91831.07281.10271.0275
GMI 1.00650.99820.99640.98750.98280.98280.97660.980.98060.9798
AQI 1.02791.04611.01041.02730.99461.00620.96591.00220.99111.023
SGI 0.98780.9980.98770.99871.01730.99691.00821.02331.02891.0419
DEPI 1.04611.01210.92970.92210.88390.90230.9650.99030.99290.9739
SGAI 0.97310.97881.02451.02221.02831.03621.03051.0231.01911.0155
LVGI 1.06211.04351.08391.07120.97050.93680.97290.99461.06841.0599
TATA -0.0496-0.0307-0.068-0.08-0.0844-0.0682-0.061-0.0467-0.0496-0.064
M-score -2.74-2.53-2.89-2.95-2.97-2.93-2.86-2.62-2.63-2.74
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