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Jarden Corp (NYSE:JAH)
Beneish M-Score
-2.54 (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 -2.54 suggests that the company is not a manipulator.

JAH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.3   Max: -0.02
Current: -2.54

-3.3
-0.02

During the past 13 years, the highest Beneish M-Score of Jarden Corp was -0.02. The lowest was -3.30. And the median was -2.53.


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 * 0.9877+0.528 * 1.0155+0.404 * 1.1491+0.892 * 1.0382+0.115 * 0.9873
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9933+4.679 * -0.0377-0.327 * 0.9313
=-2.54

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1,310 Mil.
Revenue was 2610.4 + 2256.3 + 2005.7 + 1731.5 = $8,604 Mil.
Gross Profit was 890.4 + 693.5 + 607.5 + 500.5 = $2,692 Mil.
Total Current Assets was $4,654 Mil.
Total Assets was $14,293 Mil.
Property, Plant and Equipment(Net PPE) was $1,074 Mil.
Depreciation, Depletion and Amortization(DDA) was $245 Mil.
Selling, General & Admin. Expense(SGA) was $2,021 Mil.
Total Current Liabilities was $2,275 Mil.
Long-Term Debt was $5,788 Mil.
Net Income was -4.1 + 120.2 + 85.9 + -55.5 = $147 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 914.1 + 42.6 + 48.6 + -320.6 = $685 Mil.
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.



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)
=(1310.4 / 8603.9) / (1277.9 / 8287.1)
=0.15230303 / 0.15420352
=0.9877

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)
=(2632.9 / 8287.1) / (2691.9 / 8603.9)
=0.31771066 / 0.31286975
=1.0155

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 - (4654.3 + 1074.4) / 14293.1) / (1 - (4318 + 849.9) / 10799.3)
=0.59919821 / 0.52145972
=1.1491

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
=8603.9 / 8287.1
=1.0382

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))
=(191.1 / (191.1 + 849.9)) / (245.4 / (245.4 + 1074.4))
=0.18357349 / 0.18593726
=0.9873

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)
=(2021.3 / 8603.9) / (1960 / 8287.1)
=0.23492835 / 0.23651217
=0.9933

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)
=((5787.5 + 2275.3) / 14293.1) / ((4464 + 2077.2) / 10799.3)
=0.56410436 / 0.60570593
=0.9313

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
=(146.5 - 0 - 684.7) / 14293.1
=-0.0377

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 -2.54 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.88561.44530.7910.99481.0730.91241.05040.9570.94830.9877
GMI 1.0070.99910.87841.00871.01710.97830.96780.99970.90491.0155
AQI 1.02960.94130.90930.96561.02830.97840.98871.22321.02031.1491
SGI 1.20611.21161.15520.95711.16891.10911.00241.09851.12661.0382
DEPI 0.94551.01480.82760.93621.15020.84831.14251.12830.88730.9873
SGAI 0.87731.17491.01910.99341.07560.93691.04611.04771.14470.9933
LVGI 0.89791.151.04150.91041.04870.96791.06470.93170.99810.9313
TATA -0.0045-0.0498-0.0539-0.0851-0.0257-0.0295-0.0307-0.0435-0.0304-0.0377
M-score -2.36-2.22-2.92-2.91-2.37-2.62-2.61-2.52-2.64-2.54

Jarden Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.98740.9570.91370.95280.95890.94830.8670.92221.00620.9877
GMI 0.99450.99970.98680.97240.95010.90490.92120.93310.95831.0155
AQI 0.9191.22321.14931.2541.40991.02031.09681.00981.01231.1491
SGI 1.05211.09851.1071.12511.15881.12661.10391.07691.04551.0382
DEPI 1.0351.12831.11751.06851.04110.88730.86770.91041.01320.9873
SGAI 1.05271.04771.03021.0531.09191.14471.16541.14291.10030.9933
LVGI 0.90910.93170.91450.89131.00520.99810.97471.00890.94330.9313
TATA -0.0256-0.0435-0.0376-0.029-0.0277-0.0304-0.0313-0.029-0.0168-0.0377
M-score -2.58-2.52-2.55-2.43-2.38-2.64-2.69-2.69-2.53-2.54
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