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New York & Co Inc (NYSE:NWY)
Beneish M-Score
-2.97 (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 & Co Inc has a M-score of -2.97 suggests that the company is not a manipulator.

NWY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81   Max: -2.37
Current: -2.97

-3.81
-2.37

During the past 13 years, the highest Beneish M-Score of New York & Co Inc was -2.37. The lowest was -3.81. And the median was -2.97.


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 & Co 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 * 1.0771+0.528 * 0.9704+0.404 * 0.7766+0.892 * 1.029+0.115 * 1.143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9996+4.679 * -0.1084-0.327 * 0.981
=-2.97

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $8.2 Mil.
Revenue was 271.272 + 219.75 + 235.696 + 223.39 = $950.1 Mil.
Gross Profit was 69.78 + 63.695 + 67.133 + 64.247 = $264.9 Mil.
Total Current Assets was $177.8 Mil.
Total Assets was $283.5 Mil.
Property, Plant and Equipment(Net PPE) was $88.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.2 Mil.
Selling, General & Admin. Expense(SGA) was $273.0 Mil.
Total Current Liabilities was $135.7 Mil.
Long-Term Debt was $12.3 Mil.
Net Income was 0.084 + -5.336 + -0.146 + -4.671 = $-10.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 22.701 + -7.883 + 19.433 + -13.602 = $20.6 Mil.
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 $301.3 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 $147.1 Mil.
Long-Term Debt was $13.3 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)
=(8.208 / 950.108) / (7.406 / 923.332)
=0.00863902 / 0.00802095
=1.0771

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)
=(63.695 / 923.332) / (69.78 / 950.108)
=0.27051483 / 0.27876305
=0.9704

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 - (177.764 + 88.831) / 283.46) / (1 - (193.8 + 84.374) / 301.254)
=0.05949693 / 0.07661309
=0.7766

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
=950.108 / 923.332
=1.029

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))
=(27.315 / (27.315 + 84.374)) / (24.181 / (24.181 + 88.831))
=0.24456303 / 0.21396843
=1.143

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)
=(272.96 / 950.108) / (265.371 / 923.332)
=0.28729366 / 0.28740583
=0.9996

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)
=((12.326 + 135.729) / 283.46) / ((13.258 + 147.135) / 301.254)
=0.52231355 / 0.53241783
=0.981

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
=(-10.069 - 0 - 20.649) / 283.46
=-0.1084

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 & Co Inc has a M-score of -2.97 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 & Co Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.86781.29610.67880.89191.01750.79591.11860.881.07221.0771
GMI 1.03191.09381.10461.03631.09870.98560.84560.97341.04060.9704
AQI 0.88140.35162.03281.29510.60471.41471.0171.01310.98530.7766
SGI 1.05541.00150.95390.88321.01490.93611.01040.97180.98311.029
DEPI 1.04850.9690.82740.91110.83430.88550.95140.93371.15061.143
SGAI 1.07111.00411.07571.01411.07260.92061.01041.0241.0330.9996
LVGI 0.7890.94570.96591.04051.21631.09230.97881.00691.17960.981
TATA -0.0805-0.181-0.1053-0.1576-0.2457-0.1009-0.0864-0.0883-0.0959-0.1084
M-score -2.90-3.25-2.86-3.31-3.81-3.07-2.84-3.05-2.91-2.97

New York & Co Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 0.880.96461.11961.01731.07221.18721.18341.23511.07711.0422
GMI 0.97340.98740.99661.00491.04061.02881.02261.00130.97040.983
AQI 1.01311.00211.01310.94880.98530.98411.01581.01430.77660.7283
SGI 0.97180.96390.97170.96570.98310.99561.00261.02071.0291.0169
DEPI 0.93371.00821.03691.11541.15061.14251.21081.14881.1431.1147
SGAI 1.0241.01881.00821.02731.0331.05661.07041.04770.99960.9763
LVGI 1.00691.05451.00531.10311.17961.22151.15571.05610.9811.0268
TATA -0.0883-0.1007-0.0834-0.1068-0.0959-0.1261-0.1203-0.1097-0.1084-0.1144
M-score -3.05-3.04-2.78-3.04-2.91-2.96-2.89-2.76-2.97-3.07
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