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GuruFocus has detected 5 Warning Signs with New York Times Co $NYT.
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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 -2.70.


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 * 1.0405+0.528 * 1.0046+0.404 * 1.027+0.892 * 1.0001+0.115 * 0.949
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0713+4.679 * -0.0424-0.327 * 0.8945
=-2.61

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $177 Mil.
Revenue was 398.804 + 439.65 + 363.547 + 372.63 = $1,575 Mil.
Gross Profit was 245.568 + 278.741 + 206.931 + 219.913 = $951 Mil.
Total Current Assets was $768 Mil.
Total Assets was $2,170 Mil.
Property, Plant and Equipment(Net PPE) was $589 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $769 Mil.
Total Current Liabilities was $388 Mil.
Long-Term Debt was $248 Mil.
Net Income was 13.181 + 37.144 + 0.406 + -0.211 = $51 Mil.
Non Operating Income was -0.627 + 9.242 + -0.763 + -1.603 = $6 Mil.
Cash Flow from Operations was 30.131 + 18.176 + 44.567 + 43.513 = $136 Mil.
Accounts Receivable was $170 Mil.
Revenue was 379.515 + 444.686 + 367.404 + 382.886 = $1,574 Mil.
Gross Profit was 221.653 + 288.314 + 215.373 + 230.113 = $955 Mil.
Total Current Assets was $846 Mil.
Total Assets was $2,312 Mil.
Property, Plant and Equipment(Net PPE) was $622 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $718 Mil.
Total Current Liabilities was $513 Mil.
Long-Term Debt was $244 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)
=(176.913 / 1574.631) / (170.018 / 1574.491)
=0.11235204 / 0.10798283
=1.0405

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)
=(955.453 / 1574.491) / (951.153 / 1574.631)
=0.60683294 / 0.60404819
=1.0046

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 - (767.931 + 588.505) / 2170.226) / (1 - (846.128 + 621.696) / 2311.987)
=0.37497938 / 0.36512446
=1.027

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
=1574.631 / 1574.491
=1.0001

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))
=(62.225 / (62.225 + 621.696)) / (62.404 / (62.404 + 588.505))
=0.09098273 / 0.09587208
=0.949

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)
=(768.865 / 1574.631) / (717.644 / 1574.491)
=0.48828265 / 0.45579429
=1.0713

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)
=((247.785 + 387.845) / 2170.226) / ((243.907 + 513.138) / 2311.987)
=0.29288655 / 0.32744345
=0.8945

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
=(50.52 - 6.249 - 136.387) / 2170.226
=-0.0424

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 local exchange's currency.

New York Times Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.11981.00231.02041.08861.00490.72041.16111.04390.97980.9672
GMI 0.92211.04690.95310.98091.00211.00980.97241.01330.97671.0212
AQI 1.14891.08441.03490.89350.61140.95791.17791.09821.30150.9501
SGI 0.97120.92010.83010.81160.81461.10850.88181.00720.99410.9849
DEPI 0.63511.18630.99721.02130.85640.93431.10561.00361.20130.9468
SGAI 0.98111.03321.16590.87790.93921.0980.95141.06890.99630.9966
LVGI 0.87760.99580.86661.11110.92040.94891.00630.99680.83360.8858
TATA 0.029-0.0804-0.0888-0.0202-0.0462-0.05580.0128-0.0151-0.0465-0.0132
M-score -2.24-2.85-3.02-2.73-2.99-2.92-2.30-2.47-2.53-2.56

New York Times Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.04390.9470.97320.98810.97981.02990.97750.98010.96721.0405
GMI 1.01331.01521.00610.98760.97670.97970.98671.0041.02121.0046
AQI 1.09821.04161.13391.20221.30151.13360.99230.99910.95011.027
SGI 1.00720.99710.99480.99470.99410.9950.99220.98810.98491.0001
DEPI 1.00361.05261.07021.11081.20131.11681.07981.0210.94680.949
SGAI 1.06891.11631.06031.01680.99630.8930.92650.95060.99661.0713
LVGI 0.99680.78620.77451.0060.83361.05131.05981.07830.88580.8945
TATA -0.0151-0.031-0.0455-0.0431-0.0465-0.0177-0.0199-0.0245-0.0132-0.0424
M-score -2.47-2.60-2.59-2.61-2.53-2.48-2.61-2.64-2.56-2.61
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