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New York Times Co (NYSE:NYT)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

NYT' s 10-Year Beneish M-Score Range
Min: -3.17   Max: -2.16
Current: -2.58

-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 * 0.9732+0.528 * 1.0061+0.404 * 1.1339+0.892 * 0.9948+0.115 * 1.0702
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0603+4.679 * -0.0419-0.327 * 0.7745
=-2.58

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 16.4 + -14.262 + 34.875 + -12.499 = $25 Mil.
Non Operating Income was -1.501 + -1.787 + -9.214 + -1.903 = $-14 Mil.
Cash Flow from Operations was 54.607 + 11.073 + 44.248 + 28.145 = $138 Mil.
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 $748 Mil.
Total Current Liabilities was $552 Mil.
Long-Term Debt was $442 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)
=(154.609 / 1576.526) / (159.694 / 1584.725)
=0.09806943 / 0.1007708
=0.9732

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)
=(227.603 / 1584.725) / (230.113 / 1576.526)
=0.59990724 / 0.59627878
=1.0061

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 - (922.663 + 646.101) / 2366.215) / (1 - (1044.288 + 687.724) / 2464.492)
=0.33701544 / 0.29721338
=1.1339

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
=1576.526 / 1584.725
=0.9948

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))
=(81.33 / (81.33 + 687.724)) / (70.848 / (70.848 + 646.101))
=0.1057533 / 0.09881874
=1.0702

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)
=(788.822 / 1576.526) / (747.8 / 1584.725)
=0.50035458 / 0.47187998
=1.0603

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)
=((428.821 + 310.357) / 2366.215) / ((442.396 + 551.622) / 2464.492)
=0.31238835 / 0.40333586
=0.7745

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
=(24.514 - -14.405 - 138.073) / 2366.215
=-0.0419

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 -2.58 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.10510.89881.11981.00231.02041.08860.83040.97741.03561.0439
GMI 1.01721.01930.92211.04690.95310.98091.01360.98840.98211.0133
AQI 0.94440.71391.14891.08441.03490.89350.61140.95791.17791.0982
SGI 1.02271.01820.97120.92010.83010.81160.98580.8170.98861.0072
DEPI 1.01450.84650.96121.18630.99721.02130.85640.93431.10561.0036
SGAI 1.09340.99840.98111.03321.16590.87790.98591.04290.95411.0689
LVGI 1.07021.25910.87760.99580.86661.11110.92040.94891.00630.9968
TATA -0.038-0.04430.0404-0.0945-0.0864-0.0202-0.0456-0.05580.0156-0.0123
M-score -2.59-2.97-2.15-2.92-3.01-2.73-3.00-2.95-2.30-2.45

New York Times Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.97271.03660.98021.16110.98280.83770.98441.04390.9470.9732
GMI 0.99690.98590.97870.97240.97790.99331.00881.01331.01521.0061
AQI 0.82170.92261.20561.17791.0031.01970.96861.09821.04161.1339
SGI 0.85280.81210.85730.88180.93690.99350.99141.00720.99710.9948
DEPI 1.17351.16991.05651.10560.92910.92691.0131.00361.05261.0702
SGAI 1.04921.05381.05450.95140.96730.99911.01541.06891.11631.0603
LVGI 0.95990.93890.9331.00631.01361.01970.80310.99680.78620.7745
TATA -0.03840.02550.02160.0154-0.0184-0.00370.0041-0.0123-0.0274-0.0419
M-score -2.87-2.50-2.43-2.29-2.66-2.66-2.43-2.45-2.58-2.58
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