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New York Times Co (NYSE:NYT)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

NYT' s 10-Year Beneish M-Score Range
Min: -3.05   Max: -2.15
Current: -2.45

-3.05
-2.15

During the past 13 years, the highest Beneish M-Score of New York Times Co was -2.15. The lowest was -3.05. And the median was -2.73.


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 * 1.0439+0.528 * 1.0133+0.404 * 1.0982+0.892 * 1.0072+0.115 * 1.0036
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0557+4.679 * -0.0123-0.327 * 0.9968
=-2.45

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $213 Mil.
Revenue was 444.683 + 364.718 + 388.719 + 390.408 = $1,589 Mil.
Gross Profit was 278.792 + 203.541 + 230.775 + 231.425 = $945 Mil.
Total Current Assets was $1,148 Mil.
Total Assets was $2,566 Mil.
Property, Plant and Equipment(Net PPE) was $666 Mil.
Depreciation, Depletion and Amortization(DDA) was $79 Mil.
Selling, General & Admin. Expense(SGA) was $761 Mil.
Total Current Liabilities was $601 Mil.
Long-Term Debt was $426 Mil.
Net Income was 34.875 + -12.499 + 9.188 + 1.743 = $33 Mil.
Non Operating Income was -9.214 + -1.903 + -1.103 + -3.337 = $-16 Mil.
Cash Flow from Operations was 44.248 + 28.145 + 12.541 + -4.443 = $80 Mil.
Accounts Receivable was $202 Mil.
Revenue was 443.86 + 361.738 + 390.957 + 380.675 = $1,577 Mil.
Gross Profit was 279.345 + 209.143 + 237.888 + 223.941 = $950 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 $716 Mil.
Total Current Liabilities was $349 Mil.
Long-Term Debt was $684 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)
=(212.69 / 1588.528) / (202.303 / 1577.23)
=0.13389125 / 0.12826474
=1.0439

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)
=(203.541 / 1577.23) / (278.792 / 1588.528)
=0.60252278 / 0.59459638
=1.0133

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 - (1148.095 + 665.758) / 2566.474) / (1 - (1172.267 + 713.356) / 2572.552)
=0.29325097 / 0.2670224
=1.0982

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
=1588.528 / 1577.23
=1.0072

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))
=(85.477 / (85.477 + 713.356)) / (79.455 / (79.455 + 665.758))
=0.10700234 / 0.10662052
=1.0036

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)
=(761.055 / 1588.528) / (715.753 / 1577.23)
=0.47909448 / 0.45380382
=1.0557

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)
=((426.458 + 600.508) / 2566.474) / ((684.142 + 348.511) / 2572.552)
=0.40014666 / 0.40141191
=0.9968

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
=(33.307 - -15.557 - 80.491) / 2566.474
=-0.0123

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 -2.45 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.71450.89810.97271.03660.98021.16110.98280.83770.98441.0439
GMI 0.99261.00320.99690.98590.97870.97240.97790.99331.00881.0133
AQI 0.64370.95790.82170.92261.20561.17791.0031.01970.96861.0982
SGI 1.09040.88920.85280.81210.85730.88180.93690.99350.99141.0072
DEPI 0.85880.93431.17351.16991.05651.10560.92910.92691.0131.0036
SGAI 0.95521.06661.04921.05381.05450.95140.96730.98631.00281.0557
LVGI 0.99940.94890.95990.93890.9331.00631.01361.01970.80310.9968
TATA -0.0181-0.0432-0.03840.02550.02160.0154-0.0184-0.00370.0041-0.0123
M-score -2.90-2.89-2.87-2.50-2.43-2.29-2.66-2.66-2.43-2.45
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