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New York & Company Inc (NYSE:NWY)
Beneish M-Score
-2.76 (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 -2.76 suggests that the company is not a manipulator.

NWY' s Beneish M-Score Range Over the Past 10 Years
Min: -4.57   Max: -2.23
Current: -2.76

-4.57
-2.23

During the past 12 years, the highest Beneish M-Score of New York & Company Inc was -2.23. The lowest was -4.57. And the median was -2.98.


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 * 1.2351+0.528 * 1.0013+0.404 * 1.0143+0.892 * 1.0207+0.115 * 1.1488
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0477+4.679 * -0.1097-0.327 * 1.0561
=-2.76

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $12.6 Mil.
Revenue was 219.75 + 235.696 + 223.39 + 267.359 = $946.2 Mil.
Gross Profit was 63.695 + 67.133 + 64.247 + 68.376 = $263.5 Mil.
Total Current Assets was $209.2 Mil.
Total Assets was $319.9 Mil.
Property, Plant and Equipment(Net PPE) was $87.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.1 Mil.
Selling, General & Admin. Expense(SGA) was $278.5 Mil.
Total Current Liabilities was $169.9 Mil.
Long-Term Debt was $13.0 Mil.
Net Income was -5.336 + -0.146 + -4.671 + -6.72 = $-16.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -7.883 + 19.433 + -13.602 + 20.273 = $18.2 Mil.
Accounts Receivable was $10.0 Mil.
Revenue was 210.314 + 226.066 + 219.593 + 271.004 = $927.0 Mil.
Gross Profit was 57.277 + 61.918 + 62.204 + 77.046 = $258.4 Mil.
Total Current Assets was $215.0 Mil.
Total Assets was $320.9 Mil.
Property, Plant and Equipment(Net PPE) was $82.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $28.5 Mil.
Selling, General & Admin. Expense(SGA) was $260.5 Mil.
Total Current Liabilities was $159.7 Mil.
Long-Term Debt was $14.0 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)
=(12.63 / 946.195) / (10.018 / 926.977)
=0.0133482 / 0.01080717
=1.2351

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)
=(67.133 / 926.977) / (63.695 / 946.195)
=0.27880411 / 0.27843204
=1.0013

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 - (209.202 + 87.412) / 319.937) / (1 - (215.013 + 82.833) / 320.91)
=0.07289873 / 0.07187062
=1.0143

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
=946.195 / 926.977
=1.0207

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))
=(28.507 / (28.507 + 82.833)) / (25.07 / (25.07 + 87.412))
=0.25603557 / 0.22288011
=1.1488

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)
=(278.541 / 946.195) / (260.456 / 926.977)
=0.29438012 / 0.28097353
=1.0477

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 + 169.925) / 319.937) / ((14 + 159.734) / 320.91)
=0.57175319 / 0.5413792
=1.0561

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
=(-16.873 - 0 - 18.221) / 319.937
=-0.1097

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 -2.76 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 1.09680.86781.29610.67880.89191.01750.79591.11860.881.0722
GMI 1.05911.03191.09381.10461.03631.09870.98560.84560.97341.0406
AQI 1.90240.88140.35162.03281.29510.60471.41471.0171.01311.0099
SGI 1.0871.05541.00150.95390.88321.01490.93611.01040.97180.9831
DEPI 1.26581.04850.9690.82740.91110.83430.88550.95140.93371.1506
SGAI 0.92081.07111.00411.07571.01411.07260.92061.01041.0241.033
LVGI 0.7490.7890.94570.96591.04051.21631.09230.97881.00691.1817
TATA -0.1206-0.0769-0.1785-0.1053-0.1576-0.2457-0.1009-0.0864-0.0883-0.0957
M-score -2.36-2.88-3.24-2.86-3.31-3.81-3.07-2.84-3.05-2.90

New York & Company Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 0.95841.04420.880.96461.11961.01731.07221.18721.18341.2351
GMI 0.89010.9140.97340.98740.99661.00491.04061.02881.02261.0013
AQI 1.08881.11171.01311.00211.01310.94881.00990.98411.01581.0143
SGI 1.01861.01420.97180.96390.97170.96570.98310.99561.00261.0207
DEPI 0.88860.89380.93371.00821.03691.11541.15061.14251.21081.1488
SGAI 1.00810.991.0241.01881.00821.02731.0331.05661.07041.0477
LVGI 1.00811.00121.00691.05451.00531.10311.18171.22151.15571.0561
TATA -0.1011-0.0782-0.0883-0.1007-0.0834-0.1068-0.0957-0.1261-0.1203-0.1097
M-score -3.01-2.80-3.05-3.04-2.78-3.04-2.90-2.96-2.89-2.76
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