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Jarden Corp (NYSE:JAH)
Beneish M-Score
-2.38 (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 -2.38 suggests that the company is not a manipulator.

JAH' s 10-Year Beneish M-Score Range
Min: -3.32   Max: 0.12
Current: -2.38

-3.32
0.12

During the past 13 years, the highest Beneish M-Score of Jarden Corp was 0.12. The lowest was -3.32. And the median was -2.47.


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 * 0.9589+0.528 * 0.9501+0.404 * 1.4099+0.892 * 1.1588+0.115 * 1.0411
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0919+4.679 * -0.0277-0.327 * 1.0052
=-2.38

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,378 Mil.
Revenue was 2142.2 + 1975.1 + 1731.8 + 2215.6 = $8,065 Mil.
Gross Profit was 673.3 + 602 + 514.4 + 634.5 = $2,424 Mil.
Total Current Assets was $4,269 Mil.
Total Assets was $10,823 Mil.
Property, Plant and Equipment(Net PPE) was $847 Mil.
Depreciation, Depletion and Amortization(DDA) was $191 Mil.
Selling, General & Admin. Expense(SGA) was $1,778 Mil.
Total Current Liabilities was $2,284 Mil.
Long-Term Debt was $4,264 Mil.
Net Income was 108.6 + 52.1 + 3.7 + 37 = $201 Mil.
Non Operating Income was 0 + -54.4 + 0 + 0 = $-54 Mil.
Cash Flow from Operations was 124.5 + 83.7 + -258.1 + 605.3 = $555 Mil.
Accounts Receivable was $1,241 Mil.
Revenue was 1800.8 + 1758.8 + 1580.7 + 1819.2 = $6,960 Mil.
Gross Profit was 523.2 + 513.5 + 443.5 + 507.4 = $1,988 Mil.
Total Current Assets was $4,728 Mil.
Total Assets was $8,623 Mil.
Property, Plant and Equipment(Net PPE) was $670 Mil.
Depreciation, Depletion and Amortization(DDA) was $159 Mil.
Selling, General & Admin. Expense(SGA) was $1,405 Mil.
Total Current Liabilities was $1,809 Mil.
Long-Term Debt was $3,380 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)
=(1378.4 / 8064.7) / (1240.5 / 6959.5)
=0.1709177 / 0.17824556
=0.9589

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)
=(602 / 6959.5) / (673.3 / 8064.7)
=0.28559523 / 0.30059395
=0.9501

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 - (4268.9 + 846.5) / 10823) / (1 - (4727.6 + 669.7) / 8622.5)
=0.5273584 / 0.37404465
=1.4099

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
=8064.7 / 6959.5
=1.1588

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))
=(158.7 / (158.7 + 669.7)) / (190.9 / (190.9 + 846.5))
=0.19157412 / 0.18401774
=1.0411

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)
=(1777.6 / 8064.7) / (1404.9 / 6959.5)
=0.22041737 / 0.20186795
=1.0919

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)
=((4263.7 + 2283.6) / 10823) / ((3379.8 + 1809.3) / 8622.5)
=0.60494318 / 0.60180922
=1.0052

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
=(201.4 - -54.4 - 555.4) / 10823
=-0.0277

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 -2.38 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.96281.07930.88561.44530.7910.99481.0730.91241.05040.957
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 -1.940.01-2.36-2.22-2.92-2.91-2.37-2.62-2.61-2.52

Jarden Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.95121.00631.05041.0441.04860.98740.9570.91370.95280.9589
GMI 0.98550.98650.96780.97570.98860.99450.99970.98680.97240.9501
AQI 0.99940.95820.98870.99880.97950.9191.22321.14931.2541.4099
SGI 1.03890.99831.00241.01341.02551.05211.09851.1071.12511.1588
DEPI 0.95751.04371.14251.08861.08331.0351.12831.11751.06851.0411
SGAI 0.998611.04611.08441.0751.05271.04771.03021.0531.0919
LVGI 1.04191.05971.06471.02581.02540.90910.93170.91450.89131.0052
TATA -0.0319-0.0346-0.0307-0.0267-0.0274-0.0256-0.0435-0.0376-0.029-0.0277
M-score -2.67-2.68-2.61-2.58-2.57-2.58-2.52-2.55-2.43-2.38
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