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New York Times Co (NYSE:NYT)
Beneish M-Score
-2.58 (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 Times Co has a M-score of -2.58 suggests that the company is not a manipulator.

NYT' s 10-Year Beneish M-Score Range
Min: -3.08   Max: -2.02
Current: -2.58

-3.08
-2.02

During the past 13 years, the highest Beneish M-Score of New York Times Co was -2.02. The lowest was -3.08. And the median was -2.71.


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 Times Co 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 * 0.947+0.528 * 1.0152+0.404 * 1.0416+0.892 * 0.9971+0.115 * 1.0526
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1032+4.679 * -0.0274-0.327 * 0.7862
=-2.58

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $166 Mil.
Revenue was 384.239 + 444.683 + 364.718 + 388.719 = $1,582 Mil.
Gross Profit was 227.603 + 278.792 + 203.541 + 230.775 = $941 Mil.
Total Current Assets was $944 Mil.
Total Assets was $2,360 Mil.
Property, Plant and Equipment(Net PPE) was $656 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $798 Mil.
Total Current Liabilities was $307 Mil.
Long-Term Debt was $428 Mil.
Net Income was -14.262 + 34.875 + -12.499 + 9.188 = $17 Mil.
Non Operating Income was -1.787 + -9.214 + -1.903 + -1.103 = $-14 Mil.
Cash Flow from Operations was 11.073 + 44.248 + 28.145 + 12.541 = $96 Mil.
Accounts Receivable was $176 Mil.
Revenue was 390.408 + 443.86 + 361.738 + 390.957 = $1,587 Mil.
Gross Profit was 231.425 + 279.345 + 209.143 + 237.888 = $958 Mil.
Total Current Assets was $1,033 Mil.
Total Assets was $2,508 Mil.
Property, Plant and Equipment(Net PPE) was $699 Mil.
Depreciation, Depletion and Amortization(DDA) was $84 Mil.
Selling, General & Admin. Expense(SGA) was $726 Mil.
Total Current Liabilities was $552 Mil.
Long-Term Debt was $441 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)
=(165.902 / 1582.359) / (175.696 / 1586.963)
=0.10484473 / 0.1107121
=0.947

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)
=(278.792 / 1586.963) / (227.603 / 1582.359)
=0.60354337 / 0.5944991
=1.0152

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 - (943.87 + 656.1) / 2360.146) / (1 - (1032.935 + 699.411) / 2507.837)
=0.32208855 / 0.30922704
=1.0416

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
=1582.359 / 1586.963
=0.9971

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))
=(83.769 / (83.769 + 699.411)) / (74.207 / (74.207 + 656.1))
=0.10696009 / 0.10161069
=1.0526

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)
=(798.154 / 1582.359) / (725.605 / 1586.963)
=0.50440766 / 0.45722868
=1.1032

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)
=((427.67 + 307.438) / 2360.146) / ((441.272 + 552.215) / 2507.837)
=0.31146717 / 0.39615294
=0.7862

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
=(17.302 - -14.007 - 96.007) / 2360.146
=-0.0274

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 Times Co has a M-score of -2.58 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 Times Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.10510.89881.11981.00231.02041.08860.83040.97741.03561.0439
GMI 1.01721.01930.92211.04690.95310.98091.01360.98840.98211.0133
AQI 0.94440.71391.14891.08441.03490.89350.61140.95791.17791.0982
SGI 1.02271.01820.97120.92010.83010.81160.98580.8170.98861.0072
DEPI 1.01450.84650.96121.18630.99721.02130.85640.93431.10561.0036
SGAI 1.09340.99840.98111.03321.16590.87790.98591.04290.95411.0689
LVGI 1.07021.25910.87760.99580.86661.11110.92040.94891.00630.9968
TATA -0.038-0.04430.0404-0.0945-0.0864-0.0202-0.0456-0.05580.0156-0.0123
M-score -2.59-2.97-2.15-2.92-3.01-2.73-3.00-2.95-2.30-2.45

New York Times Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.89810.97271.03660.98021.16110.98280.83770.98441.04390.947
GMI 1.00320.99690.98590.97870.97240.97790.99331.00881.01331.0152
AQI 0.95790.82170.92261.20561.17791.0031.01970.96861.09821.0416
SGI 0.88920.85280.81210.85730.88180.93690.99350.99141.00720.9971
DEPI 0.93431.17351.16991.05651.10560.92910.92691.0131.00361.0526
SGAI 1.06661.04921.05381.05450.95140.96730.98631.00281.05571.1032
LVGI 0.94890.95990.93890.9331.00631.01361.01970.80310.99680.7862
TATA -0.0432-0.03840.02550.02160.0154-0.0184-0.00370.0041-0.0123-0.0274
M-score -2.89-2.87-2.50-2.43-2.29-2.66-2.66-2.43-2.45-2.58
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