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New York Times Co (NYSE:NYT)
Beneish M-Score
-2.60 (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 -2.60 suggests that the company is not a manipulator.

NYT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Max: -2.16
Current: -2.6

-3.17
-2.16

During the past 13 years, the highest Beneish M-Score of New York Times Co was -2.16. The lowest was -3.17. 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 * 0.9881+0.528 * 0.9876+0.404 * 1.2022+0.892 * 0.9947+0.115 * 1.1108
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0168+4.679 * -0.0395-0.327 * 1.006
=-2.60

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $158 Mil.
Revenue was 367.404 + 382.886 + 384.239 + 444.683 = $1,579 Mil.
Gross Profit was 215.373 + 230.113 + 227.603 + 278.792 = $952 Mil.
Total Current Assets was $914 Mil.
Total Assets was $2,340 Mil.
Property, Plant and Equipment(Net PPE) was $639 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General & Admin. Expense(SGA) was $774 Mil.
Total Current Liabilities was $324 Mil.
Long-Term Debt was $430 Mil.
Net Income was 9.415 + 16.4 + -14.262 + 34.875 = $46 Mil.
Non Operating Income was -1.01 + -1.501 + -1.787 + -9.214 = $-14 Mil.
Cash Flow from Operations was 42.354 + 54.607 + 11.073 + 44.248 = $152 Mil.
Accounts Receivable was $160 Mil.
Revenue was 364.718 + 388.719 + 390.408 + 443.86 = $1,588 Mil.
Gross Profit was 203.541 + 230.775 + 231.425 + 279.345 = $945 Mil.
Total Current Assets was $1,086 Mil.
Total Assets was $2,444 Mil.
Property, Plant and Equipment(Net PPE) was $675 Mil.
Depreciation, Depletion and Amortization(DDA) was $79 Mil.
Selling, General & Admin. Expense(SGA) was $765 Mil.
Total Current Liabilities was $589 Mil.
Long-Term Debt was $194 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)
=(157.57 / 1579.212) / (160.333 / 1587.705)
=0.09977761 / 0.10098412
=0.9881

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)
=(230.113 / 1587.705) / (215.373 / 1579.212)
=0.5952529 / 0.60275694
=0.9876

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 - (914.083 + 638.836) / 2339.914) / (1 - (1085.823 + 674.513) / 2444.11)
=0.33633501 / 0.279764
=1.2022

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
=1579.212 / 1587.705
=0.9947

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))
=(79.314 / (79.314 + 674.513)) / (66.842 / (66.842 + 638.836))
=0.10521512 / 0.09472025
=1.1108

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)
=(773.695 / 1579.212) / (765.003 / 1587.705)
=0.48992472 / 0.48182943
=1.0168

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)
=((430.007 + 323.788) / 2339.914) / ((194.15 + 588.515) / 2444.11)
=0.32214645 / 0.32022495
=1.006

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
=(46.428 - -13.512 - 152.282) / 2339.914
=-0.0395

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 -2.60 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 0.89881.11981.00231.02041.08861.04310.77811.03561.0439
GMI 1.01930.92211.04690.95310.98091.0080.99390.98211.0133
AQI 0.71391.14891.08441.03490.89350.61140.95791.17791.0982
SGI 1.01820.97120.92010.83010.81160.78491.02620.98861.0072
DEPI 0.84650.96121.18630.99721.02130.85640.93431.10561.0036
SGAI 0.99840.98111.03321.16590.87790.96211.06880.95411.0689
LVGI 1.25910.87760.99580.86661.11110.92040.94891.00630.9968
TATA -0.04430.0404-0.0945-0.0864-0.0202-0.0448-0.05560.0156-0.0123
M-score -2.97-2.15-2.92-3.01-2.73-2.98-2.94-2.30-2.45

New York Times Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.77131.16110.98280.83770.98441.04390.9470.97320.9881
GMI 0.98570.97240.97790.99331.00881.01331.01521.00610.9876
AQI 1.20561.17791.0031.01970.96861.09821.04161.13391.2022
SGI 1.08950.88180.93690.99350.99141.00720.99710.99480.9947
DEPI 1.05651.10560.92910.92691.0131.00361.05261.07021.1108
SGAI 1.08670.95140.96730.99911.01541.06891.11631.06031.0168
LVGI 0.9331.00631.01361.01970.80310.99680.78620.77451.006
TATA 0.02170.0154-0.0184-0.00370.0041-0.0123-0.0274-0.0419-0.0395
M-score -2.42-2.29-2.66-2.66-2.43-2.45-2.58-2.58-2.60
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