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J&J Snack Foods Corp (NAS:JJSF)
Beneish M-Score
-2.72 (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 -2.72 suggests that the company is not a manipulator.

JJSF' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -2.35
Current: -2.72

-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 -2.75.


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 * 0.9903+0.528 * 1.0033+0.404 * 0.8231+0.892 * 1.0731+0.115 * 1.0129
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0118+4.679 * -0.0501-0.327 * 0.9628
=-2.72

* 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 $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 $190.6 Mil.
Total Current Liabilities was $105.6 Mil.
Long-Term Debt was $1.3 Mil.
Net Income was 24.462 + 14.637 + 11.256 + 22.189 = $72.5 Mil.
Non Operating Income was -0.053 + 1.278 + 1.354 + 1.2 = $3.8 Mil.
Cash Flow from Operations was 37.378 + 6.116 + 25.112 + 37.407 = $106.0 Mil.
Accounts Receivable was $108.7 Mil.
Revenue was 257.113 + 205.321 + 203.523 + 237.913 = $903.9 Mil.
Gross Profit was 84.368 + 61.113 + 59.906 + 75.694 = $281.1 Mil.
Total Current Assets was $265.6 Mil.
Total Assets was $698.2 Mil.
Property, Plant and Equipment(Net PPE) was $158.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $36.2 Mil.
Selling, General & Admin. Expense(SGA) was $175.5 Mil.
Total Current Liabilities was $103.9 Mil.
Long-Term Debt was $0.4 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)
=(115.508 / 969.978) / (108.685 / 903.87)
=0.11908311 / 0.12024406
=0.9903

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)
=(66.95 / 903.87) / (90.396 / 969.978)
=0.31097503 / 0.30994208
=1.0033

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 - (333.708 + 169.276) / 742.926) / (1 - (265.586 + 158.673) / 698.235)
=0.32296891 / 0.39238365
=0.8231

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
=969.978 / 903.87
=1.0731

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))
=(36.205 / (36.205 + 158.673)) / (38.023 / (38.023 + 169.276))
=0.1857829 / 0.18342105
=1.0129

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)
=(190.571 / 969.978) / (175.516 / 903.87)
=0.1964694 / 0.19418279
=1.0118

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)
=((1.265 + 105.569) / 742.926) / ((0.402 + 103.882) / 698.235)
=0.14380167 / 0.14935373
=0.9628

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
=(72.544 - 3.779 - 106.013) / 742.926
=-0.0501

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 -2.72 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.99141.02021.0971.08121.06781.13351.07771.06361.0280.9903
GMI 0.98030.97790.99240.99270.98860.97690.97020.98360.99081.0033
AQI 1.00141.28661.42310.95581.16541.06961.06451.03840.95520.8231
SGI 1.09311.07931.04441.03561.02611.03661.05971.05561.07311.0731
DEPI 1.00981.00030.96610.97830.98710.98730.97410.9720.98161.0129
SGAI 0.96560.96150.96210.97560.98761.011.02351.0341.03041.0118
LVGI 0.95220.94250.95141.04961.00261.07091.05850.98450.99410.9628
TATA -0.047-0.0467-0.0397-0.0574-0.0504-0.0519-0.0556-0.049-0.045-0.0501
M-score -2.61-2.48-2.35-2.68-2.57-2.58-2.63-2.60-2.63-2.72
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