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J&J Snack Foods Corp (NAS:JJSF)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

JJSF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Max: -2.35
Current: -2.68

-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 -2.72.


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 * 0.9713+0.528 * 0.9994+0.404 * 1.0313+0.892 * 1.021+0.115 * 1.0277
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9838+4.679 * -0.0481-0.327 * 0.9532
=-2.68

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $114.5 Mil.
Revenue was 277.981 + 229.71 + 222.85 + 259.772 = $990.3 Mil.
Gross Profit was 92.086 + 68.749 + 63.835 + 82.443 = $307.1 Mil.
Total Current Assets was $331.9 Mil.
Total Assets was $771.2 Mil.
Property, Plant and Equipment(Net PPE) was $182.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $39.6 Mil.
Selling, General & Admin. Expense(SGA) was $191.4 Mil.
Total Current Liabilities was $104.4 Mil.
Long-Term Debt was $1.3 Mil.
Net Income was 26.791 + 15.588 + 12.479 + 19.828 = $74.7 Mil.
Non Operating Income was 0.981 + 0.977 + 1.16 + -1.422 = $1.7 Mil.
Cash Flow from Operations was 43.047 + 7.383 + 20.918 + 38.721 = $110.1 Mil.
Accounts Receivable was $115.5 Mil.
Revenue was 278.724 + 225.008 + 212.752 + 253.494 = $970.0 Mil.
Gross Profit was 90.396 + 66.95 + 61.101 + 82.19 = $300.6 Mil.
Total Current Assets was $333.7 Mil.
Total Assets was $742.9 Mil.
Property, Plant and Equipment(Net PPE) was $169.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $38.0 Mil.
Selling, General & Admin. Expense(SGA) was $190.5 Mil.
Total Current Liabilities was $105.6 Mil.
Long-Term Debt was $1.3 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)
=(114.543 / 990.313) / (115.508 / 969.978)
=0.11566343 / 0.11908311
=0.9713

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)
=(300.637 / 969.978) / (307.113 / 990.313)
=0.30994208 / 0.3101171
=0.9994

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 - (331.878 + 182.468) / 771.233) / (1 - (333.708 + 169.276) / 742.926)
=0.33308611 / 0.32296891
=1.0313

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
=990.313 / 969.978
=1.021

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))
=(38.023 / (38.023 + 169.276)) / (39.643 / (39.643 + 182.468))
=0.18342105 / 0.17848283
=1.0277

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)
=(191.375 / 990.313) / (190.529 / 969.978)
=0.19324698 / 0.1964261
=0.9838

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)
=((1.327 + 104.386) / 771.233) / ((1.265 + 105.569) / 742.926)
=0.13707012 / 0.14380167
=0.9532

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
=(74.686 - 1.696 - 110.069) / 771.233
=-0.0481

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 -2.68 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

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 1.01550.95740.97410.9411.09651.0050.91251.0971.07770.967
GMI 1.01281.02141.1040.92860.97821.05871.02550.99240.97021.0148
AQI 1.1911.31221.05690.88421.05950.95280.84261.42311.06450.8453
SGI 1.12631.1051.10631.03761.06681.0681.11661.04441.05971.0618
DEPI 0.95760.99540.98571.02591.04141.09281.08830.96610.97411.0576
SGAI 0.97580.99940.93390.95010.99490.95230.96590.96141.02810.9901
LVGI 1.00260.9870.95260.94790.95870.93590.97890.95141.05850.9681
TATA -0.0841-0.0748-0.0726-0.0926-0.0428-0.0599-0.0609-0.0397-0.0556-0.0488
M-score -2.66-2.63-2.65-2.99-2.50-2.64-2.77-2.35-2.63-2.72

J&J Snack Foods Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.06781.13351.07771.06361.0280.99030.9671.0361.0280.9713
GMI 0.98860.97690.97020.98360.99081.00331.01481.01011.0080.9994
AQI 1.16541.06961.06451.03840.95520.82310.84530.91980.94041.0313
SGI 1.02611.03661.05971.05561.07311.07311.06181.06211.0451.021
DEPI 0.98710.98730.97410.9720.98161.01291.05761.06361.05421.0277
SGAI 0.98761.011.02351.03381.03021.01160.99450.98110.97560.9838
LVGI 1.00261.07091.05850.98450.99410.96280.96810.96291.01070.9532
TATA -0.0504-0.0519-0.0556-0.0473-0.0412-0.0474-0.0488-0.0429-0.0448-0.0481
M-score -2.57-2.58-2.63-2.59-2.61-2.70-2.72-2.60-2.64-2.68
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