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Jarden Corp (NYSE:JAH)
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.

Jarden Corp has a M-score of -2.53 suggests that the company is not a manipulator.

JAH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.32   Max: 0.1
Current: -2.53

-3.32
0.1

During the past 13 years, the highest Beneish M-Score of Jarden Corp was 0.10. The lowest was -3.32. 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 * 1.0062+0.528 * 0.9583+0.404 * 1.0123+0.892 * 1.0455+0.115 * 1.0132
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1003+4.679 * -0.0168-0.327 * 0.9433
=-2.53

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,450 Mil.
Revenue was 2256.3 + 2005.7 + 1731.5 + 2438 = $8,432 Mil.
Gross Profit was 693.5 + 607.5 + 500.5 + 843.2 = $2,645 Mil.
Total Current Assets was $5,060 Mil.
Total Assets was $12,876 Mil.
Property, Plant and Equipment(Net PPE) was $942 Mil.
Depreciation, Depletion and Amortization(DDA) was $209 Mil.
Selling, General & Admin. Expense(SGA) was $2,045 Mil.
Total Current Liabilities was $2,035 Mil.
Long-Term Debt was $5,313 Mil.
Net Income was 120.2 + 85.9 + -55.5 + 78.1 = $229 Mil.
Non Operating Income was 0 + 0 + 0 + -2.3 = $-2 Mil.
Cash Flow from Operations was 42.6 + 48.6 + -320.6 + 676.9 = $448 Mil.
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.



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)
=(1450 / 8431.5) / (1378.4 / 8064.7)
=0.17197414 / 0.1709177
=1.0062

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)
=(607.5 / 8064.7) / (693.5 / 8431.5)
=0.30059395 / 0.31366898
=0.9583

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 - (5059.9 + 942.2) / 12875.5) / (1 - (4268.9 + 846.5) / 10823)
=0.53383558 / 0.5273584
=1.0123

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
=8431.5 / 8064.7
=1.0455

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))
=(190.9 / (190.9 + 846.5)) / (209.1 / (209.1 + 942.2))
=0.18401774 / 0.18162078
=1.0132

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)
=(2044.8 / 8431.5) / (1777.6 / 8064.7)
=0.24251912 / 0.22041737
=1.1003

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)
=((5313.1 + 2034.6) / 12875.5) / ((4263.7 + 2283.6) / 10823)
=0.57067298 / 0.60494318
=0.9433

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
=(228.7 - -2.3 - 447.5) / 12875.5
=-0.0168

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 -2.53 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.

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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.04860.98740.9570.91370.95280.95890.94830.8670.92221.0062
GMI 0.98860.99450.99970.98680.97240.95010.90490.92120.93310.9583
AQI 0.97950.9191.22321.14931.2541.40991.02031.09681.00981.0123
SGI 1.02551.05211.09851.1071.12511.15881.12661.10391.07691.0455
DEPI 1.08331.0351.12831.11751.06851.04110.88730.86770.91041.0132
SGAI 1.0751.05271.04771.03021.0531.09191.14471.16541.14291.1003
LVGI 1.02540.90910.93170.91450.89131.00520.99810.97471.00890.9433
TATA -0.0274-0.0256-0.0435-0.0376-0.029-0.0277-0.0304-0.0313-0.029-0.0168
M-score -2.57-2.58-2.52-2.55-2.43-2.38-2.64-2.69-2.69-2.53
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