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J&J Snack Foods Corp (NAS:JJSF)
Beneish M-Score
-2.60 (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 -2.60 suggests that the company is not a manipulator.

JJSF' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -2.35
Current: -2.6

-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 -2.76.


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 * 1.0636+0.528 * 0.9836+0.404 * 1.0384+0.892 * 1.0556+0.115 * 0.972
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.034+4.679 * -0.049-0.327 * 0.9845
=-2.60

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $83.8 Mil.
Revenue was 212.752 + 253.494 + 257.113 + 205.321 = $928.7 Mil.
Gross Profit was 61.101 + 82.19 + 84.368 + 61.113 = $288.8 Mil.
Total Current Assets was $275.3 Mil.
Total Assets was $702.9 Mil.
Property, Plant and Equipment(Net PPE) was $159.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $37.6 Mil.
Selling, General & Admin. Expense(SGA) was $183.3 Mil.
Total Current Liabilities was $93.5 Mil.
Long-Term Debt was $0.3 Mil.
Net Income was 11.256 + 22.189 + 23.678 + 13.521 = $70.6 Mil.
Non Operating Income was 1.354 + 1.2 + 1.159 + 0.976 = $4.7 Mil.
Cash Flow from Operations was 25.112 + 37.407 + 30.048 + 7.809 = $100.4 Mil.
Accounts Receivable was $74.6 Mil.
Revenue was 203.523 + 237.913 + 237.036 + 201.326 = $879.8 Mil.
Gross Profit was 59.906 + 75.694 + 75.322 + 58.151 = $269.1 Mil.
Total Current Assets was $265.3 Mil.
Total Assets was $659.1 Mil.
Property, Plant and Equipment(Net PPE) was $152.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.5 Mil.
Selling, General & Admin. Expense(SGA) was $168.0 Mil.
Total Current Liabilities was $88.9 Mil.
Long-Term Debt was $0.5 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)
=(83.777 / 928.68) / (74.62 / 879.798)
=0.09021084 / 0.08481492
=1.0636

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)
=(82.19 / 879.798) / (61.101 / 928.68)
=0.30583498 / 0.31094887
=0.9836

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 - (275.336 + 159.891) / 702.864) / (1 - (265.348 + 152.085) / 659.137)
=0.38078063 / 0.36669767
=1.0384

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
=928.68 / 879.798
=1.0556

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))
=(34.505 / (34.505 + 152.085)) / (37.568 / (37.568 + 159.891))
=0.18492417 / 0.19025722
=0.972

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)
=(183.327 / 928.68) / (167.96 / 879.798)
=0.197406 / 0.19090746
=1.034

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)
=((0.348 + 93.482) / 702.864) / ((0.458 + 88.918) / 659.137)
=0.13349667 / 0.13559548
=0.9845

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
=(70.644 - 4.689 - 100.376) / 702.864
=-0.049

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 -2.60 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 0.89111.01550.95740.97410.9411.09651.0050.91251.0971.0777
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 0.99620.97580.99940.93390.95010.99490.95230.96590.96141.0281
LVGI 1.00691.00260.9870.95260.94790.95870.93590.97890.95141.0585
TATA -0.0925-0.0806-0.0785-0.0735-0.0926-0.0428-0.0599-0.0609-0.0397-0.0556
M-score -2.87-2.65-2.65-2.65-2.99-2.50-2.64-2.77-2.35-2.63

J&J Snack Foods Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.91251.06860.99141.02021.0971.08121.06781.13351.07771.0636
GMI 1.02550.99570.98030.97790.99240.99270.98860.97690.97020.9836
AQI 0.84261.12071.00141.28661.42310.95581.16541.06961.06451.0384
SGI 1.11661.11611.09311.07931.04441.03561.02611.03661.05971.0556
DEPI 1.08831.06011.00981.00030.96610.97830.98710.98730.97410.972
SGAI 0.96460.95440.96560.96150.96210.97560.98761.011.02351.034
LVGI 0.97891.06830.95220.94250.95141.04961.00261.07091.05850.9845
TATA -0.0609-0.0478-0.047-0.0467-0.0397-0.0574-0.0504-0.0519-0.0556-0.049
M-score -2.77-2.50-2.61-2.48-2.35-2.68-2.57-2.58-2.63-2.60
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