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Jarden Corp (NYSE:JAH)
Beneish M-Score
-2.64 (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 Corp has a M-score of -2.64 suggests that the company is not a manipulator.

JAH' s 10-Year Beneish M-Score Range
Min: -3.3   Max: 0.1
Current: -2.64

-3.3
0.1

During the past 13 years, the highest Beneish M-Score of Jarden Corp was 0.10. The lowest was -3.30. And the median was -2.52.


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 Corp 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 * 0.9483+0.528 * 0.9049+0.404 * 1.0203+0.892 * 1.1266+0.115 * 0.8873
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1447+4.679 * -0.0304-0.327 * 0.9981
=-2.64

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $1,278 Mil.
Revenue was 2438 + 2142.2 + 1975.1 + 1731.8 = $8,287 Mil.
Gross Profit was 843.2 + 673.3 + 602 + 514.4 = $2,633 Mil.
Total Current Assets was $4,318 Mil.
Total Assets was $10,799 Mil.
Property, Plant and Equipment(Net PPE) was $850 Mil.
Depreciation, Depletion and Amortization(DDA) was $191 Mil.
Selling, General & Admin. Expense(SGA) was $1,960 Mil.
Total Current Liabilities was $2,077 Mil.
Long-Term Debt was $4,464 Mil.
Net Income was 78.1 + 108.6 + 52.1 + 3.7 = $243 Mil.
Non Operating Income was -2.3 + 0 + -54.4 + 0 = $-57 Mil.
Cash Flow from Operations was 676.9 + 124.5 + 83.7 + -258.1 = $627 Mil.
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.



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)
=(1277.9 / 8287.1) / (1196.1 / 7355.9)
=0.15420352 / 0.16260417
=0.9483

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)
=(673.3 / 7355.9) / (843.2 / 8287.1)
=0.28748352 / 0.31771066
=0.9049

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 - (4318 + 849.9) / 10799.3) / (1 - (4083.5 + 852.6) / 10096.1)
=0.52145972 / 0.51108844
=1.0203

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
=8287.1 / 7355.9
=1.1266

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))
=(165.9 / (165.9 + 852.6)) / (191.1 / (191.1 + 849.9))
=0.1628866 / 0.18357349
=0.8873

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)
=(1960 / 8287.1) / (1519.8 / 7355.9)
=0.23651217 / 0.20660966
=1.1447

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)
=((4464 + 2077.2) / 10799.3) / ((4087.3 + 2039.4) / 10096.1)
=0.60570593 / 0.60683828
=0.9981

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
=(242.5 - -56.7 - 627) / 10799.3
=-0.0304

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 Corp has a M-score of -2.64 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 Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.07930.88561.44530.7910.99481.0730.91241.05040.9570.9483
GMI 1.33111.0070.99910.87841.00871.01710.97830.96780.99970.9049
AQI 0.82731.02960.94130.90930.96561.02830.97840.98871.22321.0203
SGI 3.80291.20611.21161.15520.95711.16891.10911.00241.09851.1266
DEPI 1.20490.94551.01480.82760.93621.15020.84831.14251.12830.8873
SGAI 0.8380.87731.17491.01910.99341.07560.93691.04611.04771.1447
LVGI 1.0280.89791.151.04150.91041.04870.96791.06470.93170.9981
TATA -0.0494-0.0045-0.0498-0.0539-0.0851-0.0257-0.0295-0.0307-0.0435-0.0304
M-score 0.01-2.36-2.22-2.92-2.91-2.37-2.62-2.61-2.52-2.64

Jarden Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.00631.05041.0441.04860.98740.9570.91370.95280.95890.9483
GMI 0.98650.96780.97570.98860.99450.99970.98680.97240.95010.9049
AQI 0.95820.98870.99880.97950.9191.22321.14931.2541.40991.0203
SGI 0.99831.00241.01341.02551.05211.09851.1071.12511.15881.1266
DEPI 1.04371.14251.08861.08331.0351.12831.11751.06851.04110.8873
SGAI 11.04611.08441.0751.05271.04771.03021.0531.09191.1447
LVGI 1.05971.06471.02581.02540.90910.93170.91450.89131.00520.9981
TATA -0.0346-0.0307-0.0267-0.0274-0.0256-0.0435-0.0376-0.029-0.0277-0.0304
M-score -2.68-2.61-2.58-2.57-2.58-2.52-2.55-2.43-2.38-2.64
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