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J&J Snack Foods Corp (NAS:JJSF)
Beneish M-Score
-2.63 (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.

J&J Snack Foods Corp has a M-score of -2.63 suggests that the company is not a manipulator.

JJSF' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -2.35
Current: -2.63

-3.23
-2.35

During the past 13 years, the highest Beneish M-Score of J&J Snack Foods Corp was -2.35. The lowest was -3.23. And the median was -2.74.


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 J&J Snack Foods 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 * 1.0777+0.528 * 0.9702+0.404 * 1.0645+0.892 * 1.0597+0.115 * 0.9741
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.028+4.679 * -0.0556-0.327 * 1.0585
=-2.63

* 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 $100.0 Mil.
Revenue was 253.494 + 257.113 + 205.321 + 203.523 = $919.5 Mil.
Gross Profit was 82.19 + 84.368 + 61.113 + 59.906 = $287.6 Mil.
Total Current Assets was $275.6 Mil.
Total Assets was $704.8 Mil.
Property, Plant and Equipment(Net PPE) was $157.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $37.1 Mil.
Selling, General & Admin. Expense(SGA) was $180.7 Mil.
Total Current Liabilities was $96.0 Mil.
Long-Term Debt was $0.4 Mil.
Net Income was 22.189 + 23.678 + 13.521 + 12.426 = $71.8 Mil.
Non Operating Income was 1.2 + 1.159 + 0.976 + 1.138 = $4.5 Mil.
Cash Flow from Operations was 37.407 + 30.048 + 7.809 + 31.278 = $106.5 Mil.
Accounts Receivable was $87.5 Mil.
Revenue was 237.913 + 237.036 + 201.326 + 191.408 = $867.7 Mil.
Gross Profit was 75.694 + 75.322 + 58.151 + 54.135 = $263.3 Mil.
Total Current Assets was $264.7 Mil.
Total Assets was $645.7 Mil.
Property, Plant and Equipment(Net PPE) was $147.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.6 Mil.
Selling, General & Admin. Expense(SGA) was $165.9 Mil.
Total Current Liabilities was $83.2 Mil.
Long-Term Debt was $0.1 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)
=(99.972 / 919.451) / (87.545 / 867.683)
=0.1087301 / 0.10089514
=1.0777

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)
=(84.368 / 867.683) / (82.19 / 919.451)
=0.30345414 / 0.31277034
=0.9702

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 - (275.606 + 157.529) / 704.773) / (1 - (264.717 + 147.164) / 645.661)
=0.38542623 / 0.36207855
=1.0645

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
=919.451 / 867.683
=1.0597

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))
=(33.552 / (33.552 + 147.164)) / (37.093 / (37.093 + 157.529))
=0.18566148 / 0.19058996
=0.9741

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)
=(180.729 / 919.451) / (165.908 / 867.683)
=0.19656186 / 0.19120808
=1.028

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)
=((0.374 + 95.957) / 704.773) / ((0.136 + 83.239) / 645.661)
=0.13668373 / 0.12913123
=1.0585

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
=(71.814 - 4.473 - 106.542) / 704.773
=-0.0556

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.

J&J Snack Foods Corp has a M-score of -2.63 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.

J&J Snack Foods Corp Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.89111.01550.95740.97410.95371.08181.0050.91251.0971.0777
GMI 0.99231.01281.02141.1040.92860.97821.05871.02550.99240.9702
AQI 1.14681.1911.31221.05690.88421.05950.95280.84261.42311.0645
SGI 1.09731.12631.1051.10631.03761.06681.0681.11661.04441.0597
DEPI 0.990.95760.99540.98571.02591.04141.09281.08830.96610.9741
SGAI 0.99620.97580.99940.93390.95010.99480.95230.96590.96141.0281
LVGI 1.00691.00260.9870.95260.94790.95870.93590.97890.95141.0585
TATA -0.0925-0.0806-0.0785-0.0735-0.0894-0.0428-0.0599-0.0609-0.0397-0.0556
M-score -2.87-2.65-2.65-2.65-2.96-2.51-2.64-2.77-2.35-2.63

J&J Snack Foods Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.92140.91251.06860.99141.02021.0971.08121.06781.13351.0777
GMI 1.06581.02550.99570.98030.97790.99240.99270.98860.97690.9702
AQI 0.98690.84261.12071.00141.28661.42310.95581.16541.06961.0645
SGI 1.11411.11661.11611.09311.07931.04441.03561.02611.03661.0597
DEPI 1.08661.08831.06011.00981.00030.96610.97830.98710.98730.9741
SGAI 0.94480.96490.9550.96620.96780.96220.97960.99161.00891.028
LVGI 0.93720.97891.06830.95220.94250.95141.04961.00261.07091.0585
TATA -0.0549-0.0609-0.0478-0.0471-0.0467-0.0397-0.0574-0.0504-0.0519-0.0556
M-score -2.64-2.77-2.50-2.61-2.48-2.35-2.68-2.57-2.58-2.63
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