Switch to:
New York Times Co (NYSE:NYT)
Beneish M-Score
-2.61 (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 -2.61 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: -2.61

-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 * 0.9775+0.528 * 0.9867+0.404 * 0.9923+0.892 * 0.9922+0.115 * 1.0798
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9265+4.679 * -0.0204-0.327 * 1.0598
=-2.61

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $150 Mil.
Revenue was 372.63 + 379.515 + 444.686 + 367.404 = $1,564 Mil.
Gross Profit was 219.913 + 221.653 + 288.314 + 215.373 = $945 Mil.
Total Current Assets was $939 Mil.
Total Assets was $2,329 Mil.
Property, Plant and Equipment(Net PPE) was $611 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $725 Mil.
Total Current Liabilities was $526 Mil.
Long-Term Debt was $245 Mil.
Net Income was -0.211 + -8.271 + 51.693 + 9.415 = $53 Mil.
Non Operating Income was -1.603 + -41.896 + 3.515 + -1.01 = $-41 Mil.
Cash Flow from Operations was 52.188 + -20.684 + 67.292 + 42.354 = $141 Mil.
Accounts Receivable was $155 Mil.
Revenue was 382.886 + 384.239 + 444.683 + 364.718 = $1,577 Mil.
Gross Profit was 230.113 + 227.603 + 278.792 + 203.541 = $940 Mil.
Total Current Assets was $923 Mil.
Total Assets was $2,366 Mil.
Property, Plant and Equipment(Net PPE) was $646 Mil.
Depreciation, Depletion and Amortization(DDA) was $71 Mil.
Selling, General & Admin. Expense(SGA) was $789 Mil.
Total Current Liabilities was $310 Mil.
Long-Term Debt was $429 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)
=(149.957 / 1564.235) / (154.609 / 1576.526)
=0.09586603 / 0.09806943
=0.9775

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)
=(940.049 / 1576.526) / (945.253 / 1564.235)
=0.59627878 / 0.60429092
=0.9867

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 - (939.142 + 611.135) / 2329.241) / (1 - (922.663 + 646.101) / 2366.215)
=0.33442825 / 0.33701544
=0.9923

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
=1564.235 / 1576.526
=0.9922

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))
=(70.848 / (70.848 + 646.101)) / (61.562 / (61.562 + 611.135))
=0.09881874 / 0.0915152
=1.0798

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)
=(725.162 / 1564.235) / (788.822 / 1576.526)
=0.46358891 / 0.50035458
=0.9265

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)
=((244.898 + 526.217) / 2329.241) / ((428.821 + 310.357) / 2366.215)
=0.33105849 / 0.31238835
=1.0598

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
=(52.626 - -40.994 - 141.15) / 2329.241
=-0.0204

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 -2.61 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 0.89881.11981.00231.02041.08861.04310.77811.03561.04390.9798
GMI 1.01930.92211.04690.95310.98091.0080.99390.98211.01330.9767
AQI 0.71391.14891.08441.03490.89350.61140.95791.17791.09821.3015
SGI 1.01820.97120.92010.83010.81160.78491.02620.98861.00720.9941
DEPI 0.84650.96121.18630.99721.02130.85640.93431.10561.00361.2013
SGAI 0.99840.98111.03321.16590.87790.96211.06880.95411.06890.9963
LVGI 1.25910.87760.99580.86661.11110.92040.94891.00630.99680.8336
TATA -0.25550.029-0.0804-0.0804-0.0202-0.0448-0.05560.013-0.0151-0.046
M-score -3.96-2.20-2.85-2.98-2.73-2.98-2.94-2.32-2.47-2.53

New York Times Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.98280.83770.98441.04390.9470.97320.98810.97981.02990.9775
GMI 0.97790.99331.00881.01331.01521.00610.98760.97670.97970.9867
AQI 1.0031.01970.96861.09821.04161.13391.20221.30151.13360.9923
SGI 0.93690.99350.99141.00720.99710.99480.99470.99410.9950.9922
DEPI 0.92910.92691.0131.00361.05261.07021.11081.20131.11681.0798
SGAI 0.96730.99911.01541.06891.11631.06031.01680.99630.8930.9265
LVGI 1.01361.01970.80310.99680.78620.77451.0060.83361.05131.0598
TATA -0.0211-0.00640.0014-0.0151-0.031-0.0455-0.0431-0.0465-0.0145-0.0204
M-score -2.67-2.68-2.44-2.47-2.60-2.59-2.61-2.53-2.47-2.61
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