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New York Times Co (NYSE:NYT)
Beneish M-Score
-2.64 (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 -2.64 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: -2.64

-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 -2.71.


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 * 0.9801+0.528 * 1.004+0.404 * 0.9991+0.892 * 0.9881+0.115 * 1.021
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9506+4.679 * -0.025-0.327 * 1.0783
=-2.64

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $153 Mil.
Revenue was 363.547 + 372.63 + 379.515 + 444.686 = $1,560 Mil.
Gross Profit was 206.931 + 219.913 + 221.653 + 288.314 = $937 Mil.
Total Current Assets was $963 Mil.
Total Assets was $2,357 Mil.
Property, Plant and Equipment(Net PPE) was $602 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $727 Mil.
Total Current Liabilities was $573 Mil.
Long-Term Debt was $246 Mil.
Net Income was 0.406 + -0.211 + -8.271 + 51.693 = $44 Mil.
Non Operating Income was -0.763 + -1.603 + -41.896 + 3.515 = $-41 Mil.
Cash Flow from Operations was 44.567 + 52.188 + -20.684 + 67.292 = $143 Mil.
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.



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)
=(152.589 / 1560.378) / (157.57 / 1579.212)
=0.09778977 / 0.09977761
=0.9801

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)
=(951.881 / 1579.212) / (936.811 / 1560.378)
=0.60275694 / 0.6003744
=1.004

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 - (962.75 + 602.14) / 2356.88) / (1 - (914.083 + 638.836) / 2339.914)
=0.33603323 / 0.33633501
=0.9991

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
=1560.378 / 1579.212
=0.9881

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))
=(66.842 / (66.842 + 638.836)) / (61.577 / (61.577 + 602.14))
=0.09472025 / 0.09277599
=1.021

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)
=(726.716 / 1560.378) / (773.695 / 1579.212)
=0.46573074 / 0.48992472
=0.9506

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)
=((245.922 + 572.808) / 2356.88) / ((430.007 + 323.788) / 2339.914)
=0.34737874 / 0.32214645
=1.0783

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
=(43.617 - -40.747 - 143.363) / 2356.88
=-0.025

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 -2.64 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 local exchange's currency.

New York Times Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.89881.11980.99921.02350.90090.98280.96331.07281.04390.9798
GMI 1.01930.92211.04740.95270.97221.01751.01050.96561.01330.9767
AQI 0.71391.14891.08441.03490.89350.94050.62411.17541.09821.3015
SGI 1.01820.97120.92290.82760.98080.97070.85650.79251.00720.9941
DEPI 0.84650.96121.18630.99721.02130.97680.90041.00591.00361.2013
SGAI 0.99840.98111.03281.06840.9180.99461.08340.95051.06890.9963
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 -3.96-2.20-2.92-2.84-2.77-2.74-3.06-2.47-2.45-2.53

New York Times Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.03791.16111.16281.00330.97320.98810.97981.02990.97750.9801
GMI 0.97950.99871.00561.01331.00610.98760.97670.97970.98671.004
AQI 1.01970.96861.09821.04161.13391.20221.30151.13360.99230.9991
SGI 0.80190.84060.90420.94110.99480.99470.99410.9950.99220.9881
DEPI 0.92691.0131.00361.05261.07021.11081.20131.11681.07981.021
SGAI 0.97671.01131.04141.10051.0741.02131.00880.90360.92650.9506
LVGI 1.01970.80310.99680.78620.77451.0060.83361.05131.05981.0783
TATA -0.00420.0042-0.0123-0.0274-0.0419-0.0395-0.046-0.0145-0.0204-0.025
M-score -2.66-2.40-2.44-2.58-2.58-2.60-2.53-2.47-2.61-2.64
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