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New York & Company Inc (NYSE:NWY)
Beneish M-Score
-2.90 (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.

New York & Company Inc has a M-score of -2.90 suggests that the company is not a manipulator.

NWY' s 10-Year Beneish M-Score Range
Min: -3.81   Max: -2.2
Current: -2.9

-3.81
-2.2

During the past 12 years, the highest Beneish M-Score of New York & Company Inc was -2.20. The lowest was -3.81. And the median was -3.05.


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 New York & Company 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 * 1.0722+0.528 * 1.0406+0.404 * 1.0099+0.892 * 0.9831+0.115 * 1.1506
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.033+4.679 * -0.0957-0.327 * 1.1817
=-2.90

* 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 $7.4 Mil.
Revenue was 267.359 + 210.314 + 226.066 + 219.593 = $923.3 Mil.
Gross Profit was 68.376 + 57.277 + 61.918 + 62.204 = $249.8 Mil.
Total Current Assets was $193.8 Mil.
Total Assets was $301.9 Mil.
Property, Plant and Equipment(Net PPE) was $84.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.3 Mil.
Selling, General & Admin. Expense(SGA) was $265.4 Mil.
Total Current Liabilities was $147.3 Mil.
Long-Term Debt was $13.8 Mil.
Net Income was -6.72 + -9.736 + -0.147 + -0.282 = $-16.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 20.273 + -10.414 + 21.019 + -18.878 = $12.0 Mil.
Accounts Receivable was $7.0 Mil.
Revenue was 271.004 + 217.626 + 223.05 + 227.483 = $939.2 Mil.
Gross Profit was 77.046 + 60.988 + 60.002 + 66.334 = $264.4 Mil.
Total Current Assets was $182.7 Mil.
Total Assets was $288.8 Mil.
Property, Plant and Equipment(Net PPE) was $83.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.7 Mil.
Selling, General & Admin. Expense(SGA) was $261.3 Mil.
Total Current Liabilities was $130.3 Mil.
Long-Term Debt was $0.0 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)
=(7.406 / 923.332) / (7.026 / 939.163)
=0.00802095 / 0.00748113
=1.0722

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)
=(57.277 / 939.163) / (68.376 / 923.332)
=0.28149533 / 0.27051483
=1.0406

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 - (193.8 + 84.374) / 301.88) / (1 - (182.748 + 83.553) / 288.753)
=0.07852789 / 0.07775504
=1.0099

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
=923.332 / 939.163
=0.9831

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))
=(32.719 / (32.719 + 83.553)) / (27.315 / (27.315 + 84.374))
=0.28140051 / 0.24456303
=1.1506

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)
=(265.371 / 923.332) / (261.293 / 939.163)
=0.28740583 / 0.27821901
=1.033

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)
=((13.75 + 147.269) / 301.88) / ((0 + 130.33) / 288.753)
=0.53338744 / 0.45135462
=1.1817

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
=(-16.885 - 0 - 12) / 301.88
=-0.0957

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.

New York & Company Inc has a M-score of -2.90 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.

New York & Company Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1.29610.67880.89191.01750.79591.11860.881.0722
GMI 1.09381.10461.03631.09870.98560.84560.97341.0406
AQI 0.35162.03281.29510.60471.41471.0171.01311.0099
SGI 1.00150.95390.88321.01490.93611.01040.97180.9831
DEPI 0.9690.82740.91110.83430.88550.95140.93371.1506
SGAI 1.00411.07571.01411.07260.92061.01041.0241.033
LVGI 0.94570.96591.04051.21631.09230.97881.00691.1817
TATA -0.1785-0.1053-0.1576-0.2457-0.1009-0.0864-0.0883-0.0957
M-score -3.24-2.86-3.31-3.81-3.07-2.84-3.05-2.90

New York & Company Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 1.02511.11861.27220.95841.04420.880.96461.11961.01731.0722
GMI 0.9910.84560.85990.89010.9140.97340.98740.99661.00491.0406
AQI 1.09331.0171.17651.08881.11171.01311.00211.01310.94881.0099
SGI 0.95821.01041.02261.01861.01420.97180.96390.97170.96570.9831
DEPI 0.9360.95140.89950.88860.89380.93370.99731.03691.11541.1506
SGAI 1.03711.01041.0041.00810.991.0241.01881.00821.02731.033
LVGI 1.09130.97880.9331.00811.00121.00691.05451.00531.10311.1817
TATA -0.1726-0.0864-0.0739-0.1011-0.0782-0.0883-0.0964-0.0768-0.1068-0.0957
M-score -3.31-2.84-2.55-3.01-2.80-3.05-3.02-2.75-3.04-2.90
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