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New York Times Co (NYSE:NYT)
Beneish M-Score
-2.43 (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 -2.43 suggests that the company is not a manipulator.

NYT' s 10-Year Beneish M-Score Range
Min: -3.08   Max: -2.02
Current: -2.43

-3.08
-2.02

During the past 13 years, the highest Beneish M-Score of New York Times Co was -2.02. The lowest was -3.08. 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 * 0.9844+0.528 * 1.0088+0.404 * 0.9686+0.892 * 0.9914+0.115 * 1.013
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0028+4.679 * 0.0034-0.327 * 0.8031
=-2.43

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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 $755 Mil.
Total Current Liabilities was $589 Mil.
Long-Term Debt was $194 Mil.
Net Income was -12.499 + 9.188 + 1.743 + 65.626 = $64 Mil.
Non Operating Income was -1.903 + -1.103 + -3.337 + 1.155 = $-5 Mil.
Cash Flow from Operations was 28.145 + 12.541 + -4.443 + 24.785 = $61 Mil.
Accounts Receivable was $164 Mil.
Revenue was 361.738 + 390.957 + 380.675 + 468.114 = $1,601 Mil.
Gross Profit was 209.143 + 237.888 + 223.941 + 290.674 = $962 Mil.
Total Current Assets was $1,148 Mil.
Total Assets was $2,628 Mil.
Property, Plant and Equipment(Net PPE) was $721 Mil.
Depreciation, Depletion and Amortization(DDA) was $86 Mil.
Selling, General & Admin. Expense(SGA) was $760 Mil.
Total Current Liabilities was $365 Mil.
Long-Term Debt was $683 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)
=(160.333 / 1587.705) / (164.282 / 1601.484)
=0.10098412 / 0.10258111
=0.9844

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)
=(230.775 / 1601.484) / (203.541 / 1587.705)
=0.60047181 / 0.5952529
=1.0088

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 - (1085.823 + 674.513) / 2444.11) / (1 - (1147.963 + 721.171) / 2628.27)
=0.279764 / 0.28883486
=0.9686

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
=1587.705 / 1601.484
=0.9914

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))
=(86.036 / (86.036 + 721.171)) / (79.314 / (79.314 + 674.513))
=0.1065848 / 0.10521512
=1.013

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)
=(755.478 / 1587.705) / (759.939 / 1601.484)
=0.47583021 / 0.47452176
=1.0028

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)
=((194.15 + 588.515) / 2444.11) / ((682.983 + 365.015) / 2628.27)
=0.32022495 / 0.39874062
=0.8031

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
=(64.058 - -5.188 - 61.028) / 2444.11
=0.0034

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 -2.43 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.81480.71450.89810.97271.03660.98021.16110.98280.83770.9844
GMI 0.99580.99261.00320.99690.98590.97870.97240.97790.99331.0088
AQI 0.86690.64370.95790.82170.92261.20561.17791.0031.01970.9686
SGI 1.08171.09040.88920.85280.81210.85730.88180.93690.99350.9914
DEPI 0.83450.85880.93431.17351.16991.05651.10560.92910.92691.013
SGAI 0.9470.95521.06661.04921.05381.05450.95140.96730.98631.0028
LVGI 0.8980.99940.94890.95990.93890.9331.00631.01361.01970.8031
TATA -0.0392-0.0181-0.0432-0.03840.02550.02160.0146-0.0192-0.00440.0034
M-score -2.79-2.90-2.89-2.87-2.50-2.43-2.29-2.66-2.66-2.43
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