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Johnson Outdoors Inc (NAS:JOUT)
Beneish M-Score
-2.70 (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.

Johnson Outdoors Inc has a M-score of -2.70 suggests that the company is not a manipulator.

JOUT' s 10-Year Beneish M-Score Range
Min: -4.38   Max: -2.05
Current: -2.7

-4.38
-2.05

During the past 13 years, the highest Beneish M-Score of Johnson Outdoors Inc was -2.05. The lowest was -4.38. And the median was -2.58.


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 Johnson Outdoors Inc 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 * 1.0843+0.528 * 0.9937+0.404 * 0.8045+0.892 * 1.0378+0.115 * 0.8921
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0282+4.679 * -0.0447-0.327 * 1.0593
=-2.70

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $110.8 Mil.
Revenue was 133.111 + 70.822 + 84.904 + 137.133 = $426.0 Mil.
Gross Profit was 51.936 + 27.334 + 34.019 + 55.819 = $169.1 Mil.
Total Current Assets was $253.9 Mil.
Total Assets was $342.9 Mil.
Property, Plant and Equipment(Net PPE) was $44.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.3 Mil.
Selling, General & Admin. Expense(SGA) was $135.0 Mil.
Total Current Liabilities was $76.3 Mil.
Long-Term Debt was $55.3 Mil.
Net Income was 3.646 + -4.194 + -0.786 + 4.698 = $3.4 Mil.
Non Operating Income was -0.495 + 0.572 + 0.347 + 0.952 = $1.4 Mil.
Cash Flow from Operations was -25.692 + -32.15 + 26.405 + 48.758 = $17.3 Mil.
Accounts Receivable was $98.5 Mil.
Revenue was 124.273 + 79.1 + 77.315 + 129.772 = $410.5 Mil.
Gross Profit was 48.846 + 29.929 + 28.814 + 54.337 = $161.9 Mil.
Total Current Assets was $247.4 Mil.
Total Assets was $348.5 Mil.
Property, Plant and Equipment(Net PPE) was $45.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.9 Mil.
Selling, General & Admin. Expense(SGA) was $126.5 Mil.
Total Current Liabilities was $76.7 Mil.
Long-Term Debt was $49.6 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)
=(110.817 / 425.97) / (98.484 / 410.46)
=0.26015212 / 0.23993568
=1.0843

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)
=(27.334 / 410.46) / (51.936 / 425.97)
=0.39449885 / 0.39699509
=0.9937

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 - (253.852 + 44.741) / 342.851) / (1 - (247.408 + 45.198) / 348.529)
=0.12908815 / 0.16045437
=0.8045

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
=425.97 / 410.46
=1.0378

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))
=(9.917 / (9.917 + 45.198)) / (11.304 / (11.304 + 44.741))
=0.17993287 / 0.20169507
=0.8921

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)
=(134.998 / 425.97) / (126.514 / 410.46)
=0.31691903 / 0.30822492
=1.0282

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)
=((55.333 + 76.34) / 342.851) / ((49.627 + 76.735) / 348.529)
=0.38405313 / 0.36255807
=1.0593

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
=(3.364 - 1.376 - 17.321) / 342.851
=-0.0447

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.

Johnson Outdoors Inc has a M-score of -2.70 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.

Johnson Outdoors Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.9061.05290.99620.94180.97311.00670.94430.85141.04831.0104
GMI 1.01170.98391.02421.07491.01810.92781.00261.00460.99371.0119
AQI 1.05551.02461.02460.4221.58960.88491.27050.90671.17130.7969
SGI 1.07151.03971.0880.97720.84731.07271.06531.0121.03440.9975
DEPI 0.87341.02521.09531.00280.78141.18750.95410.96641.30340.9711
SGAI 1.01920.97160.991.04070.99440.96380.9770.9960.95530.9783
LVGI 0.87940.88931.01591.3260.80870.98790.81590.86570.96680.9499
TATA -0.07040.00550.031-0.1318-0.1888-0.05660.0152-0.0844-0.0379-0.0885
M-score -2.78-2.32-2.23-3.48-3.24-2.73-2.23-3.00-2.46-2.95

Johnson Outdoors Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.93410.94790.96441.04831.00540.92911.071.01040.91161.0843
GMI 1.00430.9770.98710.99370.99661.02291.02941.01191.00410.9937
AQI 1.14281.26251.32241.17130.90910.90190.74970.79690.79610.8045
SGI 1.02571.03431.02191.03440.99740.97090.98560.99750.99721.0378
DEPI 1.03231.11651.27871.30341.27051.22391.0690.97110.9110.8921
SGAI 0.94320.95260.93820.95531.01291.00231.0010.97830.98711.0282
LVGI 0.98311.01910.9280.96680.93130.89870.93770.94990.97041.0593
TATA -0.0877-0.0482-0.021-0.0379-0.0044-0.0552-0.0952-0.0885-0.102-0.0447
M-score -2.85-2.61-2.40-2.46-2.49-2.80-2.93-2.95-3.12-2.70
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