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GuruFocus has detected 6 Warning Signs with New York Times Co $NYT.
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New York Times Co (NYSE:NYT)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

NYT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07   Max: -2.24
Current: -2.57

-4.07
-2.24

During the past 13 years, the highest Beneish M-Score of New York Times Co was -2.24. The lowest was -4.07. And the median was -2.70.


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 * 0.9672+0.528 * 1.0212+0.404 * 0.9501+0.892 * 0.9849+0.115 * 0.9468
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9966+4.679 * -0.0138-0.327 * 0.8858
=-2.57

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $197 Mil.
Revenue was 439.65 + 363.547 + 372.63 + 379.515 = $1,555 Mil.
Gross Profit was 278.741 + 206.931 + 219.913 + 221.653 = $927 Mil.
Total Current Assets was $796 Mil.
Total Assets was $2,185 Mil.
Property, Plant and Equipment(Net PPE) was $597 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $749 Mil.
Total Current Liabilities was $399 Mil.
Long-Term Debt was $247 Mil.
Net Income was 37.144 + 0.406 + -0.211 + -8.271 = $29 Mil.
Non Operating Income was 9.242 + -0.763 + -1.603 + -41.896 = $-35 Mil.
Cash Flow from Operations was 18.176 + 44.567 + 52.188 + -20.684 = $94 Mil.
Accounts Receivable was $207 Mil.
Revenue was 444.686 + 367.404 + 382.886 + 384.239 = $1,579 Mil.
Gross Profit was 288.314 + 215.373 + 230.113 + 227.603 = $961 Mil.
Total Current Assets was $863 Mil.
Total Assets was $2,418 Mil.
Property, Plant and Equipment(Net PPE) was $632 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $763 Mil.
Total Current Liabilities was $564 Mil.
Long-Term Debt was $243 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)
=(197.355 / 1555.342) / (207.18 / 1579.215)
=0.12688849 / 0.13119176
=0.9672

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)
=(961.403 / 1579.215) / (927.238 / 1555.342)
=0.60878538 / 0.59616342
=1.0212

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 - (796.178 + 596.743) / 2185.395) / (1 - (862.532 + 632.439) / 2417.69)
=0.36262278 / 0.38165315
=0.9501

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
=1555.342 / 1579.215
=0.9849

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))
=(61.597 / (61.597 + 632.439)) / (61.723 / (61.723 + 596.743))
=0.08875188 / 0.09373757
=0.9468

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)
=(749.107 / 1555.342) / (763.221 / 1579.215)
=0.48163491 / 0.48329138
=0.9966

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)
=((246.978 + 398.737) / 2185.395) / ((242.851 + 563.585) / 2417.69)
=0.29546832 / 0.33355641
=0.8858

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
=(29.068 - -35.02 - 94.247) / 2185.395
=-0.0138

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 -2.57 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.11981.00231.02041.08861.04310.77811.03561.04390.97980.9672
GMI 0.92211.04690.95310.98091.0080.99390.98211.01330.97671.0212
AQI 1.14891.08441.03490.89350.61140.95791.17791.09821.30150.9501
SGI 0.97120.92010.83010.81160.78491.02620.98861.00720.99410.9849
DEPI 0.96121.18630.99721.02130.85640.93431.10561.00361.20130.9468
SGAI 0.98111.03321.16590.87790.96211.06880.95411.06890.99630.9966
LVGI 0.87760.99580.86661.11110.92040.94891.00630.99680.83360.8858
TATA 0.029-0.0804-0.0804-0.0202-0.0448-0.05560.013-0.0151-0.046-0.0132
M-score -2.20-2.85-2.98-2.73-2.98-2.94-2.32-2.47-2.53-2.56

New York Times Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.98441.04390.9470.97320.98810.97981.02990.97750.98010.9672
GMI 1.00881.01331.01521.00610.98760.97670.97970.98671.0041.0212
AQI 0.96861.09821.04161.13391.20221.30151.13360.99230.99910.9501
SGI 0.99141.00720.99710.99480.99470.99410.9950.99220.98810.9849
DEPI 1.0131.00361.05261.07021.11081.20131.11681.07981.0210.9468
SGAI 1.01541.06891.11631.06031.01680.99630.8930.92650.95060.9966
LVGI 0.80310.99680.78620.77451.0060.83361.05131.05981.07830.8858
TATA 0.0014-0.0151-0.031-0.0455-0.0431-0.0465-0.0145-0.0204-0.025-0.0138
M-score -2.44-2.47-2.60-2.59-2.61-2.53-2.47-2.61-2.64-2.57
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