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New York & Company Inc (NYSE:NWY)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

NWY' s 10-Year Beneish M-Score Range
Min: -4.57   Max: -2.2
Current: -2.75

-4.57
-2.2

During the past 11 years, the highest Beneish M-Score of New York & Company Inc was -2.20. The lowest was -4.57. And the median was -3.02.


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 * 1.1196+0.528 * 0.9966+0.404 * 1.0131+0.892 * 0.9717+0.115 * 1.0369
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0082+4.679 * -0.0768-0.327 * 1.0053
=-2.75

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $10.7 Mil.
Revenue was 226.066 + 219.593 + 271.004 + 217.626 = $934.3 Mil.
Gross Profit was 61.918 + 62.204 + 77.046 + 60.988 = $262.2 Mil.
Total Current Assets was $184.4 Mil.
Total Assets was $284.9 Mil.
Property, Plant and Equipment(Net PPE) was $78.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.6 Mil.
Selling, General & Admin. Expense(SGA) was $257.8 Mil.
Total Current Liabilities was $128.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -0.147 + -0.282 + 6.943 + -3.434 = $3.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 21.019 + -18.878 + 39.338 + -16.503 = $25.0 Mil.
Accounts Receivable was $9.8 Mil.
Revenue was 223.05 + 227.483 + 291.758 + 219.25 = $961.5 Mil.
Gross Profit was 60.002 + 66.334 + 81.625 + 60.927 = $268.9 Mil.
Total Current Assets was $175.6 Mil.
Total Assets was $285.4 Mil.
Property, Plant and Equipment(Net PPE) was $87.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.9 Mil.
Selling, General & Admin. Expense(SGA) was $263.2 Mil.
Total Current Liabilities was $127.6 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)
=(10.688 / 934.289) / (9.825 / 961.541)
=0.01143972 / 0.01021797
=1.1196

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)
=(62.204 / 961.541) / (61.918 / 934.289)
=0.27964278 / 0.28059412
=0.9966

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 - (184.372 + 77.956) / 284.943) / (1 - (175.596 + 87.41) / 285.362)
=0.07936675 / 0.0783426
=1.0131

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
=934.289 / 961.541
=0.9717

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))
=(34.867 / (34.867 + 87.41)) / (29.569 / (29.569 + 77.956))
=0.28514766 / 0.27499651
=1.0369

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)
=(257.812 / 934.289) / (263.183 / 961.541)
=0.2759446 / 0.2737096
=1.0082

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)
=((0 + 128.063) / 284.943) / ((0 + 127.578) / 285.362)
=0.44943375 / 0.44707424
=1.0053

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
=(3.08 - 0 - 24.976) / 284.943
=-0.0768

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 -2.75 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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 1.29610.67880.89191.01750.79591.11860.88
GMI 1.09381.10461.03631.09870.98560.84560.9734
AQI 0.35162.03281.29510.60471.41471.0171.0131
SGI 1.00150.95390.88321.01490.93611.01040.9718
DEPI 0.9690.82740.91110.83430.88550.95140.9337
SGAI 1.00411.07571.01411.07260.92061.01041.024
LVGI 0.94570.96591.04051.21631.09230.97881.0069
TATA -0.1785-0.1053-0.1576-0.2457-0.1009-0.0864-0.0883
M-score -3.24-2.86-3.31-3.81-3.07-2.84-3.05

New York & Company Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.9991.00591.02511.11861.27220.95841.04420.880.96461.1196
GMI 0.97441.04930.9910.84560.85990.89010.9140.97340.98740.9966
AQI 1.23621.16021.09331.0171.17651.08881.11171.01311.00211.0131
SGI 0.92260.93530.95821.01041.02261.01861.01420.97180.96390.9717
DEPI 0.92230.9160.9360.95140.89950.88860.89380.93370.99731.0369
SGAI 0.93581.00041.03711.01041.0041.00810.991.0241.01881.0082
LVGI 1.10581.14151.09130.97880.9331.00811.02021.00691.05451.0053
TATA -0.1771-0.1722-0.1726-0.0864-0.0739-0.1011-0.0782-0.0883-0.0964-0.0768
M-score -3.33-3.30-3.31-2.84-2.55-3.01-2.81-3.05-3.02-2.75
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