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J&J Snack Foods Corp (NAS:JJSF)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

JJSF' s 10-Year Beneish M-Score Range
Min: -3.21   Max: -2.35
Current: -2.57

-3.21
-2.35

During the past 13 years, the highest Beneish M-Score of J&J Snack Foods Corp was -2.35. The lowest was -3.21. And the median was -2.78.


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 * 1.0678+0.528 * 0.9886+0.404 * 1.1654+0.892 * 1.0261+0.115 * 0.9871
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9919+4.679 * -0.0504-0.327 * 1.0026
=-2.57

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $86.9 Mil.
Revenue was 205.321 + 203.523 + 237.913 + 237.036 = $883.8 Mil.
Gross Profit was 61.113 + 59.906 + 75.694 + 75.322 = $272.0 Mil.
Total Current Assets was $249.5 Mil.
Total Assets was $666.0 Mil.
Property, Plant and Equipment(Net PPE) was $155.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.4 Mil.
Selling, General & Admin. Expense(SGA) was $170.5 Mil.
Total Current Liabilities was $86.0 Mil.
Long-Term Debt was $0.4 Mil.
Net Income was 13.521 + 12.426 + 20.323 + 21.172 = $67.4 Mil.
Non Operating Income was 0.976 + 1.138 + 0.916 + 0.904 = $3.9 Mil.
Cash Flow from Operations was 7.809 + 31.278 + 32.848 + 25.145 = $97.1 Mil.
Accounts Receivable was $79.3 Mil.
Revenue was 201.326 + 191.408 + 242.221 + 226.335 = $861.3 Mil.
Gross Profit was 58.151 + 54.135 + 77.285 + 72.507 = $262.1 Mil.
Total Current Assets was $268.2 Mil.
Total Assets was $619.8 Mil.
Property, Plant and Equipment(Net PPE) was $143.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.1 Mil.
Selling, General & Admin. Expense(SGA) was $167.5 Mil.
Total Current Liabilities was $80.0 Mil.
Long-Term Debt was $0.2 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)
=(86.87 / 883.793) / (79.285 / 861.29)
=0.09829225 / 0.09205378
=1.0678

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)
=(59.906 / 861.29) / (61.113 / 883.793)
=0.30428543 / 0.30780398
=0.9886

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 - (249.479 + 155.255) / 665.994) / (1 - (268.239 + 142.954) / 619.833)
=0.39228582 / 0.3366068
=1.1654

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
=883.793 / 861.29
=1.0261

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))
=(32.084 / (32.084 + 142.954)) / (35.402 / (35.402 + 155.255))
=0.18329734 / 0.18568424
=0.9871

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)
=(170.497 / 883.793) / (167.505 / 861.29)
=0.19291508 / 0.19448153
=0.9919

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)
=((0.43 + 85.996) / 665.994) / ((0.214 + 80.014) / 619.833)
=0.12976994 / 0.12943486
=1.0026

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
=(67.442 - 3.934 - 97.08) / 665.994
=-0.0504

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 -2.57 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 1.10040.89111.01550.96450.97750.93071.09651.0050.91251.097
GMI 1.01750.99231.01281.02141.1040.92860.97821.05871.02550.9924
AQI 0.86981.14681.1911.31221.05690.88421.05950.95280.84261.4231
SGI 1.14271.09731.12631.1051.10631.03761.06681.0681.11661.0444
DEPI 1.05070.990.95760.99540.98571.02591.04141.09281.08830.9661
SGAI 0.97770.99620.97580.99940.93390.95010.99490.95230.96590.9614
LVGI 1.02671.00691.00260.9870.95260.94790.95870.93590.97890.9514
TATA -0.0901-0.0925-0.0806-0.0785-0.0735-0.0926-0.0428-0.0599-0.0609-0.0397
M-score -2.72-2.87-2.65-2.65-2.65-3.00-2.50-2.64-2.77-2.35

J&J Snack Foods Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.95871.0210.92140.91251.06860.99141.02021.0971.08121.0678
GMI 1.07191.07431.06581.02550.99570.98030.97790.99240.99270.9886
AQI 1.2191.22210.98690.84261.12071.00141.28661.42310.95581.1654
SGI 1.08231.1121.11411.11661.11611.09311.07931.04441.03561.0261
DEPI 1.13671.18641.08661.08831.06011.00981.00030.96610.97830.9871
SGAI 0.95320.94290.95190.96460.95440.96560.9640.96180.980.9919
LVGI 0.9660.98890.93720.97891.06830.95220.94250.95141.04961.0026
TATA -0.0728-0.0595-0.0549-0.0609-0.0478-0.047-0.0467-0.0397-0.0574-0.0504
M-score -2.62-2.48-2.64-2.77-2.50-2.61-2.48-2.35-2.68-2.57
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