Switch to:
New York Times Co (NYSE:NYT)
Beneish M-Score
-2.53 (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 -2.53 suggests that the company is not a manipulator.

NYT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07   Max: -2.19
Current: -2.53

-3.07
-2.19

During the past 13 years, the highest Beneish M-Score of New York Times Co was -2.19. The lowest was -3.07. 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 * 0.9798+0.528 * 0.9767+0.404 * 1.3015+0.892 * 0.9941+0.115 * 1.2013
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9963+4.679 * -0.046-0.327 * 0.8336
=-2.53

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
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.
Net Income was 51.693 + 9.415 + 16.4 + -14.262 = $63 Mil.
Non Operating Income was 3.515 + -1.01 + -1.501 + -1.787 = $-1 Mil.
Cash Flow from Operations was 67.292 + 42.354 + 54.607 + 11.073 = $175 Mil.
Accounts Receivable was $213 Mil.
Revenue was 444.683 + 364.718 + 388.719 + 390.408 = $1,589 Mil.
Gross Profit was 278.792 + 203.541 + 230.775 + 231.425 = $945 Mil.
Total Current Assets was $1,148 Mil.
Total Assets was $2,566 Mil.
Property, Plant and Equipment(Net PPE) was $666 Mil.
Depreciation, Depletion and Amortization(DDA) was $79 Mil.
Selling, General & Admin. Expense(SGA) was $771 Mil.
Total Current Liabilities was $601 Mil.
Long-Term Debt was $426 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)
=(207.18 / 1579.215) / (212.69 / 1588.528)
=0.13119176 / 0.13389125
=0.9798

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)
=(215.373 / 1588.528) / (288.314 / 1579.215)
=0.59459638 / 0.60878538
=0.9767

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 - (862.532 + 632.439) / 2417.69) / (1 - (1148.095 + 665.758) / 2566.474)
=0.38165315 / 0.29325097
=1.3015

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
=1579.215 / 1588.528
=0.9941

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))
=(79.455 / (79.455 + 665.758)) / (61.597 / (61.597 + 632.439))
=0.10662052 / 0.08875188
=1.2013

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)
=(763.221 / 1579.215) / (770.58 / 1588.528)
=0.48329138 / 0.4850906
=0.9963

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)
=((242.851 + 563.585) / 2417.69) / ((426.458 + 600.508) / 2566.474)
=0.33355641 / 0.40014666
=0.8336

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
=(63.246 - -0.783 - 175.326) / 2417.69
=-0.046

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 -2.53 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 0.93821.11980.99921.02350.90090.84330.93231.29191.04390.9798
GMI 1.01530.92211.04740.95270.97221.01751.01050.96561.01330.9767
AQI 0.71391.14891.08441.03490.89350.61140.95791.17791.09821.3015
SGI 0.97540.97120.92290.82760.98080.97070.85650.79251.00720.9941
DEPI 0.84650.96121.18630.99721.02130.85640.93431.10561.00361.2013
SGAI 1.01980.98111.03281.06840.9180.99461.08340.95051.06890.9963
LVGI 1.25910.87760.99580.86661.11110.92040.94891.00630.99680.8336
TATA -0.25550.029-0.0948-0.054-0.0225-0.048-0.05680.0149-0.0123-0.046
M-score -3.97-2.20-2.92-2.84-2.77-3.01-2.95-2.25-2.45-2.53

New York Times Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.16110.98280.83770.98441.04390.9470.97320.98810.9798
GMI 0.97240.97790.99331.00881.01331.01521.00610.98760.9767
AQI 1.17791.0031.01970.96861.09821.04161.13391.20221.3015
SGI 0.88180.93690.99350.99141.00720.99710.99480.99470.9941
DEPI 1.10560.92910.92691.0131.00361.05261.07021.11081.2013
SGAI 0.95140.96730.99911.01541.06891.11631.06031.01680.9963
LVGI 1.00631.01361.01970.80310.99680.78620.77451.0060.8336
TATA 0.0128-0.0211-0.00640.0014-0.0151-0.0305-0.0449-0.0425-0.046
M-score -2.30-2.67-2.68-2.44-2.47-2.59-2.59-2.61-2.53
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)

GuruFocus Premium Plus Membership

FEEDBACK