Switch to:
Jarden Corporation (NYSE:JAH)
Beneish M-Score
-2.52 (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.

Jarden Corporation has a M-score of -2.52 suggests that the company is not a manipulator.

JAH' s 10-Year Beneish M-Score Range
Min: -3.01   Max: 0.07
Current: -2.52

-3.01
0.07

During the past 13 years, the highest Beneish M-Score of Jarden Corporation was 0.07. The lowest was -3.01. And the median was -2.51.


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 Jarden Corporation 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 * 0.957+0.528 * 0.9997+0.404 * 1.2232+0.892 * 1.0985+0.115 * 1.1283
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0477+4.679 * -0.0435-0.327 * 0.9317
=-2.52

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,196 Mil.
Revenue was 2215.6 + 1800.8 + 1758.8 + 1580.7 = $7,356 Mil.
Gross Profit was 634.5 + 523.2 + 513.5 + 443.5 = $2,115 Mil.
Total Current Assets was $4,084 Mil.
Total Assets was $10,096 Mil.
Property, Plant and Equipment(Net PPE) was $853 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $1,520 Mil.
Total Current Liabilities was $2,039 Mil.
Long-Term Debt was $4,087 Mil.
Net Income was 37 + 94.9 + 76.4 + -4.4 = $204 Mil.
Non Operating Income was 0 + 0 + -8.8 + -17.1 = $-26 Mil.
Cash Flow from Operations was 605.3 + 104.6 + 164.8 + -206.2 = $669 Mil.
Accounts Receivable was $1,138 Mil.
Revenue was 1819.2 + 1705.9 + 1675.6 + 1495.4 = $6,696 Mil.
Gross Profit was 507.4 + 501 + 496.4 + 419.6 = $1,924 Mil.
Total Current Assets was $3,810 Mil.
Total Assets was $7,711 Mil.
Property, Plant and Equipment(Net PPE) was $679 Mil.
Depreciation, Depletion and Amortization(DDA) was $153 Mil.
Selling, General & Admin. Expense(SGA) was $1,321 Mil.
Total Current Liabilities was $1,729 Mil.
Long-Term Debt was $3,293 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)
=(1196.1 / 7355.9) / (1137.7 / 6696.1)
=0.16260417 / 0.16990487
=0.957

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)
=(523.2 / 6696.1) / (634.5 / 7355.9)
=0.28739117 / 0.28748352
=0.9997

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 - (4083.5 + 852.6) / 10096.1) / (1 - (3810.4 + 678.6) / 7710.6)
=0.51108844 / 0.41781444
=1.2232

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
=7355.9 / 6696.1
=1.0985

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))
=(152.8 / (152.8 + 678.6)) / (165.9 / (165.9 + 852.6))
=0.18378638 / 0.1628866
=1.1283

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)
=(1519.8 / 7355.9) / (1320.5 / 6696.1)
=0.20660966 / 0.19720434
=1.0477

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)
=((4087.3 + 2039.4) / 10096.1) / ((3293.4 + 1728.7) / 7710.6)
=0.60683828 / 0.65132415
=0.9317

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
=(203.9 - -25.9 - 668.5) / 10096.1
=-0.0435

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.

Jarden Corporation has a M-score of -2.52 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.

Jarden Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.96191.06980.88561.44530.7910.99481.0730.91241.05040.957
GMI 1.10391.33111.0070.99910.87841.00871.01710.97830.96780.9997
AQI 1.35930.82731.02960.94130.90930.96561.02830.97840.98871.2232
SGI 1.4273.80291.20611.21161.15520.95711.16891.10911.00241.0985
DEPI 0.87071.20490.94551.01480.82760.93621.15020.84831.14251.1283
SGAI 1.04970.8380.87731.17491.01910.99341.07560.93691.04611.0477
LVGI 0.95781.0280.89791.151.04150.91041.04870.96791.06470.9317
TATA -0.0002-0.0494-0.0045-0.0498-0.0539-0.0851-0.0257-0.0295-0.0307-0.0435
M-score -1.940.00-2.36-2.22-2.92-2.91-2.37-2.62-2.61-2.52

Jarden Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.91690.91240.97090.95121.00631.05041.0441.04860.98740.957
GMI 0.97090.97830.97790.98550.98650.96780.97570.98860.99450.9997
AQI 1.02930.97840.99160.99940.95820.98870.99880.97950.9191.2232
SGI 1.15611.10911.05931.03890.99831.00241.01341.02551.05211.0985
DEPI 0.85460.84830.91560.95751.04371.14251.08861.08331.0351.1283
SGAI 0.95580.93691.00520.998611.04611.08441.0751.05271.0477
LVGI 0.9890.96791.04591.04191.05971.06471.02581.02540.90910.9317
TATA -0.0078-0.0295-0.0322-0.0319-0.0346-0.0307-0.0267-0.0274-0.0256-0.0435
M-score -2.46-2.62-2.65-2.67-2.68-2.61-2.58-2.57-2.58-2.52
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)
Free 7-day Trial
FEEDBACK
Hide