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New York & Company Inc (NYSE:NWY)
Beneish M-Score
-3.09 (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 -3.09 suggests that the company is not a manipulator.

NWY' s 10-Year Beneish M-Score Range
Min: -4.59   Max: -2.2
Current: -3.09

-4.59
-2.2

During the past 11 years, the highest Beneish M-Score of New York & Company Inc was -2.20. The lowest was -4.59. 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 * 0.8424+0.528 * 0.9734+0.404 * 1.0131+0.892 * 0.9718+0.115 * 0.9337
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.024+4.679 * -0.0883-0.327 * 1.0069
=-3.09

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $7.1 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.
Net Income was 6.943 + -3.434 + -2.709 + 1.594 = $2.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 39.338 + -16.503 + 23.567 + -18.514 = $27.9 Mil.
Accounts Receivable was $8.7 Mil.
Revenue was 291.758 + 219.25 + 227.69 + 227.736 = $966.4 Mil.
Gross Profit was 81.625 + 60.927 + 57.719 + 64.55 = $264.8 Mil.
Total Current Assets was $172.3 Mil.
Total Assets was $292.7 Mil.
Property, Plant and Equipment(Net PPE) was $98.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.9 Mil.
Selling, General & Admin. Expense(SGA) was $262.6 Mil.
Total Current Liabilities was $131.2 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)
=(7.125 / 939.163) / (8.704 / 966.434)
=0.00758654 / 0.00900631
=0.8424

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)
=(60.988 / 966.434) / (77.046 / 939.163)
=0.27401871 / 0.28149533
=0.9734

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 - (182.748 + 83.553) / 288.753) / (1 - (172.256 + 97.96) / 292.68)
=0.07775504 / 0.07675277
=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
=939.163 / 966.434
=0.9718

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))
=(34.909 / (34.909 + 97.96)) / (32.719 / (32.719 + 83.553))
=0.26273247 / 0.28140051
=0.9337

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)
=(261.293 / 939.163) / (262.569 / 966.434)
=0.27821901 / 0.2716885
=1.024

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 + 130.33) / 288.753) / ((0 + 131.201) / 292.68)
=0.45135462 / 0.44827457
=1.0069

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
=(2.394 - 0 - 27.888) / 288.753
=-0.0883

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 -3.09 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 2.11690.76910.6350.8140.80471.11210.8424
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 -2.49-2.78-3.54-4.00-3.06-2.85-3.09

New York & Company Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 0.39670.80470.96540.96931.02551.11211.2610.92781.00540.8424
GMI 0.87210.98560.97441.04930.9910.84560.85990.89010.9140.9734
AQI 1.1481.41471.23621.16021.09331.0171.17651.08881.11171.0131
SGI 0.97170.93610.92260.93530.95821.01041.02261.01861.01420.9718
DEPI 0.90980.88550.92230.9160.9360.95140.89950.88860.89380.9337
SGAI 0.91170.92060.93581.00041.03711.01041.0041.00810.991.024
LVGI 0.98431.09231.10581.14151.09130.97880.9511.02891.02021.0069
TATA -0.0863-0.1009-0.1771-0.1722-0.1726-0.0864-0.0739-0.1011-0.0782-0.0883
M-score -3.46-3.06-3.36-3.34-3.31-2.85-2.56-3.05-2.85-3.09
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