Switch to:
Jarden Corp (NYSE:JAH)
Beneish M-Score
-2.43 (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 -2.43 suggests that the company is not a manipulator.

JAH' s 10-Year Beneish M-Score Range
Min: -3.32   Max: 0.12
Current: -2.43

-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 -2.48.


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 * 0.9528+0.528 * 0.9724+0.404 * 1.254+0.892 * 1.1251+0.115 * 1.0685
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.053+4.679 * -0.029-0.327 * 0.8913
=-2.43

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $1,265 Mil.
Revenue was 1975.1 + 1731.8 + 2215.6 + 1800.8 = $7,723 Mil.
Gross Profit was 602 + 514.4 + 634.5 + 523.2 = $2,274 Mil.
Total Current Assets was $4,008 Mil.
Total Assets was $10,128 Mil.
Property, Plant and Equipment(Net PPE) was $849 Mil.
Depreciation, Depletion and Amortization(DDA) was $182 Mil.
Selling, General & Admin. Expense(SGA) was $1,661 Mil.
Total Current Liabilities was $2,073 Mil.
Long-Term Debt was $3,964 Mil.
Net Income was 52.1 + 3.7 + 37 + 94.9 = $188 Mil.
Non Operating Income was -54.4 + 0 + 0 + 0 = $-54 Mil.
Cash Flow from Operations was 83.7 + -258.1 + 605.3 + 104.6 = $536 Mil.
Accounts Receivable was $1,180 Mil.
Revenue was 1758.8 + 1580.7 + 1819.2 + 1705.9 = $6,865 Mil.
Gross Profit was 513.5 + 443.5 + 507.4 + 501 = $1,965 Mil.
Total Current Assets was $3,849 Mil.
Total Assets was $7,737 Mil.
Property, Plant and Equipment(Net PPE) was $677 Mil.
Depreciation, Depletion and Amortization(DDA) was $158 Mil.
Selling, General & Admin. Expense(SGA) was $1,402 Mil.
Total Current Liabilities was $1,771 Mil.
Long-Term Debt was $3,402 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)
=(1265.2 / 7723.3) / (1180.3 / 6864.6)
=0.16381599 / 0.1719401
=0.9528

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)
=(514.4 / 6864.6) / (602 / 7723.3)
=0.28630947 / 0.29444667
=0.9724

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 - (4007.5 + 848.9) / 10128.3) / (1 - (3848.5 + 677.2) / 7737.1)
=0.52051183 / 0.41506508
=1.254

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
=7723.3 / 6864.6
=1.1251

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))
=(157.8 / (157.8 + 677.2)) / (182.4 / (182.4 + 848.9))
=0.18898204 / 0.17686415
=1.0685

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)
=(1660.8 / 7723.3) / (1401.9 / 6864.6)
=0.21503761 / 0.20422166
=1.053

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)
=((3963.5 + 2072.7) / 10128.3) / ((3401.9 + 1771.3) / 7737.1)
=0.59597366 / 0.66862261
=0.8913

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
=(187.7 - -54.4 - 535.5) / 10128.3
=-0.029

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 -2.43 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.97090.95121.00631.05041.0441.04860.98740.9570.91370.9528
GMI 0.97790.98550.98650.96780.97570.98860.99450.99970.98680.9724
AQI 0.99160.99940.95820.98870.99880.97950.9191.22321.14931.254
SGI 1.05931.03890.99831.00241.01341.02551.05211.09851.1071.1251
DEPI 0.91560.95751.04371.14251.08861.08331.0351.12831.11751.0685
SGAI 1.00520.998611.04611.08441.0751.05271.04771.03021.053
LVGI 1.04591.04191.05971.06471.02581.02540.90910.93170.91450.8913
TATA -0.0322-0.0319-0.0346-0.0307-0.0267-0.0274-0.0256-0.0435-0.0376-0.029
M-score -2.65-2.67-2.68-2.61-2.58-2.57-2.58-2.52-2.55-2.43
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