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New York Times Co (NYSE:NYT)
Beneish M-Score
-2.66 (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 -2.66 suggests that the company is not a manipulator.

NYT' s 10-Year Beneish M-Score Range
Min: -3.14   Max: -2.15
Current: -2.66

-3.14
-2.15

During the past 13 years, the highest Beneish M-Score of New York Times Co was -2.15. The lowest was -3.14. 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 * 0.8377+0.528 * 0.9933+0.404 * 1.0197+0.892 * 0.9935+0.115 * 0.9269
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9863+4.679 * -0.0042-0.327 * 1.0197
=-2.66

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $160 Mil.
Revenue was 388.719 + 390.408 + 443.86 + 361.738 = $1,585 Mil.
Gross Profit was 230.775 + 231.425 + 279.345 + 209.143 = $951 Mil.
Total Current Assets was $1,044 Mil.
Total Assets was $2,464 Mil.
Property, Plant and Equipment(Net PPE) was $688 Mil.
Depreciation, Depletion and Amortization(DDA) was $81 Mil.
Selling, General & Admin. Expense(SGA) was $738 Mil.
Total Current Liabilities was $552 Mil.
Long-Term Debt was $442 Mil.
Net Income was 9.188 + 1.743 + 65.626 + -24.226 = $52 Mil.
Non Operating Income was -1.103 + -3.337 + -0.972 + -1.478 = $-7 Mil.
Cash Flow from Operations was 12.541 + -4.443 + 24.785 + 36.632 = $70 Mil.
Accounts Receivable was $192 Mil.
Revenue was 390.957 + 380.675 + 468.114 + 355.337 = $1,595 Mil.
Gross Profit was 237.888 + 223.941 + 290.674 + 197.967 = $950 Mil.
Total Current Assets was $1,054 Mil.
Total Assets was $2,648 Mil.
Property, Plant and Equipment(Net PPE) was $822 Mil.
Depreciation, Depletion and Amortization(DDA) was $89 Mil.
Selling, General & Admin. Expense(SGA) was $753 Mil.
Total Current Liabilities was $353 Mil.
Long-Term Debt was $694 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)
=(159.694 / 1584.725) / (191.869 / 1595.083)
=0.1007708 / 0.12028778
=0.8377

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)
=(231.425 / 1595.083) / (230.775 / 1584.725)
=0.59587495 / 0.59990724
=0.9933

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 - (1044.288 + 687.724) / 2464.492) / (1 - (1053.507 + 822.414) / 2647.621)
=0.29721338 / 0.29146921
=1.0197

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
=1584.725 / 1595.083
=0.9935

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))
=(89.372 / (89.372 + 822.414)) / (81.33 / (81.33 + 687.724))
=0.09801861 / 0.1057533
=0.9269

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)
=(738.275 / 1584.725) / (753.403 / 1595.083)
=0.46586947 / 0.4723284
=0.9863

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)
=((442.396 + 551.622) / 2464.492) / ((694.158 + 353.101) / 2647.621)
=0.40333586 / 0.39554717
=1.0197

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
=(52.331 - -6.89 - 69.515) / 2464.492
=-0.0042

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 -2.66 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

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 Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.8230.81480.71450.89810.97271.03660.98021.16110.98280.8377
GMI 0.99890.99580.99261.00320.99690.98590.97870.97240.97790.9933
AQI 0.94080.86690.64370.95790.82170.92261.20561.17791.0031.0197
SGI 1.0491.08171.09040.88920.85280.81210.85730.88180.93690.9935
DEPI 0.81280.83450.85880.93431.17351.16991.05651.10560.92910.9269
SGAI 0.96260.9470.95521.06661.04921.05381.0460.95140.96730.9863
LVGI 0.90630.8980.99940.94890.95990.93890.9331.00631.01361.0197
TATA -0.0392-0.0392-0.0181-0.0432-0.03840.02550.0210.0149-0.0189-0.0042
M-score -2.79-2.79-2.90-2.89-2.87-2.50-2.43-2.29-2.66-2.66
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