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New York Times Company (NYSE:NYT)
Beneish M-Score
-2.31 (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 Company has a M-score of -2.31 suggests that the company is not a manipulator.

NYT' s 10-Year Beneish M-Score Range
Min: -3.05   Max: -2.15
Current: -2.31

-3.05
-2.15

During the past 13 years, the highest Beneish M-Score of New York Times Company was -2.15. The lowest was -3.05. And the median was -2.76.


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 Company 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 * 1.0424+0.528 * 0.9798+0.404 * 1.1779+0.892 * 0.9822+0.115 * 1.1056
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9645+4.679 * 0.0147-0.327 * 1.0063
=-2.31

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $202 Mil.
Revenue was 443.86 + 361.738 + 485.363 + 465.933 = $1,757 Mil.
Gross Profit was 279.345 + 209.143 + 292.967 + 269.059 = $1,051 Mil.
Total Current Assets was $1,172 Mil.
Total Assets was $2,573 Mil.
Property, Plant and Equipment(Net PPE) was $713 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $808 Mil.
Total Current Liabilities was $349 Mil.
Long-Term Debt was $684 Mil.
Net Income was 65.626 + -24.226 + 20.131 + 3.138 = $65 Mil.
Non Operating Income was -0.972 + -1.478 + -1.562 + -4.104 = $-8 Mil.
Cash Flow from Operations was 24.785 + 36.632 + 60.995 + -87.557 = $35 Mil.
Accounts Receivable was $198 Mil.
Revenue was 468.114 + 355.337 + 489.802 + 475.432 = $1,789 Mil.
Gross Profit was 290.674 + 197.967 + 287.224 + 272.097 = $1,048 Mil.
Total Current Assets was $1,398 Mil.
Total Assets was $2,807 Mil.
Property, Plant and Equipment(Net PPE) was $773 Mil.
Depreciation, Depletion and Amortization(DDA) was $104 Mil.
Selling, General & Admin. Expense(SGA) was $853 Mil.
Total Current Liabilities was $423 Mil.
Long-Term Debt was $697 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)
=(202.303 / 1756.894) / (197.589 / 1788.685)
=0.1151481 / 0.11046607
=1.0424

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)
=(209.143 / 1788.685) / (279.345 / 1756.894)
=0.58588404 / 0.59793818
=0.9798

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 - (1172.267 + 713.356) / 2572.552) / (1 - (1397.568 + 773.469) / 2807.47)
=0.2670224 / 0.22669272
=1.1779

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
=1756.894 / 1788.685
=0.9822

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))
=(103.775 / (103.775 + 773.469)) / (85.477 / (85.477 + 713.356))
=0.11829662 / 0.10700234
=1.1056

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)
=(808.284 / 1756.894) / (853.214 / 1788.685)
=0.46006418 / 0.47700629
=0.9645

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)
=((684.142 + 348.511) / 2572.552) / ((696.752 + 423.156) / 2807.47)
=0.40141191 / 0.39890293
=1.0063

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
=(64.669 - -8.116 - 34.855) / 2572.552
=0.0147

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 Company has a M-score of -2.31 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 Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.02561.10510.89881.11981.00231.02041.08860.83040.97741.0356
GMI 1.00451.01721.01930.92211.04690.95310.98091.01360.98840.9821
AQI 0.98520.94440.71391.14891.08441.03490.89350.61140.95791.1779
SGI 0.9791.02271.01820.97120.92010.83010.81160.98580.8170.9886
DEPI 1.11.01450.84650.96121.18630.99721.02130.85640.93431.1056
SGAI 1.04681.09340.99840.98111.03321.16590.87790.98591.04290.9541
LVGI 1.03061.07021.25910.87760.99580.86661.11110.92040.94891.0063
TATA -0.0417-0.038-0.04430.0404-0.0945-0.0864-0.0202-0.0456-0.05580.0149
M-score -2.68-2.59-2.97-2.15-2.92-3.01-2.73-3.00-2.95-2.31

New York Times Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.30560.80610.8230.81480.71450.89810.92610.93160.88131.0424
GMI 1.03711.00860.99890.99580.99261.00321.00190.99230.98580.9798
AQI 0.85570.61140.94080.86690.64370.95790.82170.92261.20561.1779
SGI 0.711.01561.0491.08171.09040.88920.89570.90350.95350.9822
DEPI 0.97720.85640.81280.83450.85880.93431.17351.16991.05651.1056
SGAI 0.9230.96690.96260.9470.95521.06661.05821.06351.05590.9645
LVGI 1.0480.92040.90630.8980.99940.94890.95990.93890.9331.0063
TATA -0.0881-0.0471-0.0392-0.0392-0.0181-0.0432-0.03860.02540.02090.0147
M-score -2.91-3.00-2.79-2.79-2.90-2.89-2.87-2.52-2.44-2.31
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