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Jarden Corp (NYSE:JAH)
Beneish M-Score
-2.69 (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 -2.69 suggests that the company is not a manipulator.

JAH' s 10-Year Beneish M-Score Range
Min: -3.32   Max: 0.1
Current: -2.69

-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 -2.51.


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 * 0.9222+0.528 * 0.9331+0.404 * 1.0098+0.892 * 1.0769+0.115 * 0.9104
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1429+4.679 * -0.029-0.327 * 1.0089
=-2.69

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,257 Mil.
Revenue was 2005.7 + 1731.5 + 2438 + 2142.2 = $8,317 Mil.
Gross Profit was 607.5 + 500.5 + 843.2 + 673.3 = $2,625 Mil.
Total Current Assets was $4,257 Mil.
Total Assets was $10,682 Mil.
Property, Plant and Equipment(Net PPE) was $810 Mil.
Depreciation, Depletion and Amortization(DDA) was $195 Mil.
Selling, General & Admin. Expense(SGA) was $2,044 Mil.
Total Current Liabilities was $1,986 Mil.
Long-Term Debt was $4,437 Mil.
Net Income was 85.9 + -55.5 + 78.1 + 108.6 = $217 Mil.
Non Operating Income was 0 + 0 + -2.3 + 0 = $-2 Mil.
Cash Flow from Operations was 48.6 + -320.6 + 676.9 + 124.5 = $529 Mil.
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.



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)
=(1256.5 / 8317.4) / (1265.2 / 7723.3)
=0.15106884 / 0.16381599
=0.9222

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)
=(500.5 / 7723.3) / (607.5 / 8317.4)
=0.29444667 / 0.31554332
=0.9331

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 - (4257.1 + 810.4) / 10681.7) / (1 - (4007.5 + 848.9) / 10128.3)
=0.5255905 / 0.52051183
=1.0098

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
=8317.4 / 7723.3
=1.0769

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))
=(182.4 / (182.4 + 848.9)) / (195.4 / (195.4 + 810.4))
=0.17686415 / 0.19427322
=0.9104

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)
=(2044.2 / 8317.4) / (1660.8 / 7723.3)
=0.24577392 / 0.21503761
=1.1429

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)
=((4437 + 1985.9) / 10681.7) / ((3963.5 + 2072.7) / 10128.3)
=0.60129942 / 0.59597366
=1.0089

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
=(217.1 - -2.3 - 529.4) / 10681.7
=-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 -2.69 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.0441.04860.98740.9570.91370.95280.95890.94830.8670.9222
GMI 0.97570.98860.99450.99970.98680.97240.95010.90490.92120.9331
AQI 0.99880.97950.9191.22321.14931.2541.40991.02031.09681.0098
SGI 1.01341.02551.05211.09851.1071.12511.15881.12661.10391.0769
DEPI 1.08861.08331.0351.12831.11751.06851.04110.88730.86770.9104
SGAI 1.08441.0751.05271.04771.03021.0531.09191.14471.16541.1429
LVGI 1.02581.02540.90910.93170.91450.89131.00520.99810.97471.0089
TATA -0.0267-0.0274-0.0256-0.0435-0.0376-0.029-0.0277-0.0304-0.0313-0.029
M-score -2.58-2.57-2.58-2.52-2.55-2.43-2.38-2.64-2.69-2.69
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