Switch to:
New York Times Co (NYSE:NYT)
Beneish M-Score
-2.47 (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 -2.47 suggests that the company is not a manipulator.

NYT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07   Max: -2.16
Current: -2.47

-4.07
-2.16

During the past 13 years, the highest Beneish M-Score of New York Times Co was -2.16. The lowest was -4.07. And the median was -2.72.


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 * 1.0299+0.528 * 0.9797+0.404 * 1.1336+0.892 * 0.995+0.115 * 1.1168
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9036+4.679 * -0.0145-0.327 * 1.0513
=-2.47

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $170 Mil.
Revenue was 379.515 + 444.686 + 367.404 + 382.886 = $1,574 Mil.
Gross Profit was 221.653 + 288.314 + 215.373 + 230.113 = $955 Mil.
Total Current Assets was $846 Mil.
Total Assets was $2,312 Mil.
Property, Plant and Equipment(Net PPE) was $622 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $718 Mil.
Total Current Liabilities was $513 Mil.
Long-Term Debt was $244 Mil.
Net Income was -8.271 + 51.693 + 9.415 + 16.4 = $69 Mil.
Non Operating Income was -41.896 + 3.515 + -1.01 + -1.501 = $-41 Mil.
Cash Flow from Operations was -20.684 + 67.292 + 42.354 + 54.607 = $144 Mil.
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.



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)
=(170.018 / 1574.491) / (165.902 / 1582.359)
=0.10798283 / 0.10484473
=1.0299

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)
=(288.314 / 1582.359) / (221.653 / 1574.491)
=0.5944991 / 0.60683294
=0.9797

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 - (846.128 + 621.696) / 2311.987) / (1 - (943.87 + 656.1) / 2360.146)
=0.36512446 / 0.32208855
=1.1336

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
=1574.491 / 1582.359
=0.995

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))
=(74.207 / (74.207 + 656.1)) / (62.225 / (62.225 + 621.696))
=0.10161069 / 0.09098273
=1.1168

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)
=(717.644 / 1574.491) / (798.154 / 1582.359)
=0.45579429 / 0.50440766
=0.9036

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)
=((243.907 + 513.138) / 2311.987) / ((427.67 + 307.438) / 2360.146)
=0.32744345 / 0.31146717
=1.0513

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
=(69.237 - -40.892 - 143.569) / 2311.987
=-0.0145

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 -2.47 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.93821.11980.99921.02350.90090.98280.96331.07281.04390.9798
GMI 1.01530.92211.04740.95270.97221.01751.01050.96561.01330.9767
AQI 0.71391.14891.08441.03490.89350.94050.62411.17541.09821.3015
SGI 0.97540.97120.92290.82760.98080.97070.85650.79251.00720.9941
DEPI 0.84650.96121.18630.99721.02130.97680.90041.00591.00361.2013
SGAI 1.01980.98111.03281.06840.9180.99461.08340.95051.06890.9963
LVGI 1.25910.87760.99580.86661.11110.91990.94941.00630.99680.8336
TATA -0.25550.029-0.0948-0.054-0.0225-0.048-0.05680.0149-0.0123-0.046
M-score -3.97-2.20-2.92-2.84-2.77-2.74-3.06-2.47-2.45-2.53

New York Times Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.9871.09861.03791.16111.16281.00330.97320.98810.97981.0299
GMI 0.97410.96880.97950.99871.00561.01331.00610.98760.97670.9797
AQI 1.17541.0031.01970.96861.09821.04161.13391.20221.30151.1336
SGI 0.86150.83820.80190.84060.90420.94110.99480.99470.99410.995
DEPI 1.00590.92910.92691.0131.00361.05261.07021.11081.20131.1168
SGAI 0.97660.96690.97671.01131.04141.10051.0741.02131.00880.9036
LVGI 1.00631.01361.01970.80310.99680.78620.77451.0060.83361.0513
TATA 0.0147-0.0189-0.00420.0042-0.0123-0.0279-0.0424-0.04-0.0465-0.0145
M-score -2.49-2.64-2.66-2.40-2.44-2.58-2.58-2.60-2.54-2.47
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK