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Johnson Outdoors Inc (NAS:JOUT)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

JOUT' s 10-Year Beneish M-Score Range
Min: -4.38   Max: -2.05
Current: -2.79

-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 * 0.9678+0.528 * 0.9769+0.404 * 1.017+0.892 * 1.0285+0.115 * 0.8817
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0773+4.679 * -0.0503-0.327 * 1.1157
=-2.79

* 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 $79.7 Mil.
Revenue was 140.883 + 133.111 + 70.822 + 84.904 = $429.7 Mil.
Gross Profit was 58.752 + 51.936 + 27.334 + 34.019 = $172.0 Mil.
Total Current Assets was $224.3 Mil.
Total Assets was $317.8 Mil.
Property, Plant and Equipment(Net PPE) was $44.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.6 Mil.
Selling, General & Admin. Expense(SGA) was $139.7 Mil.
Total Current Liabilities was $84.6 Mil.
Long-Term Debt was $7.2 Mil.
Net Income was 9.997 + 3.646 + -4.194 + -0.786 = $8.7 Mil.
Non Operating Income was -0.115 + -0.495 + 0.572 + 0.347 = $0.3 Mil.
Cash Flow from Operations was 55.793 + -25.692 + -32.15 + 26.405 = $24.4 Mil.
Accounts Receivable was $80.0 Mil.
Revenue was 137.133 + 124.273 + 79.1 + 77.315 = $417.8 Mil.
Gross Profit was 55.819 + 48.846 + 29.929 + 28.814 = $163.4 Mil.
Total Current Assets was $216.0 Mil.
Total Assets was $308.7 Mil.
Property, Plant and Equipment(Net PPE) was $45.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.2 Mil.
Selling, General & Admin. Expense(SGA) was $126.1 Mil.
Total Current Liabilities was $72.4 Mil.
Long-Term Debt was $7.6 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)
=(79.663 / 429.72) / (80.036 / 417.821)
=0.18538351 / 0.19155571
=0.9678

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)
=(51.936 / 417.821) / (58.752 / 429.72)
=0.39109571 / 0.40035605
=0.9769

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 - (224.307 + 44.43) / 317.846) / (1 - (215.99 + 45.838) / 308.731)
=0.15450564 / 0.1519219
=1.017

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
=429.72 / 417.821
=1.0285

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))
=(10.248 / (10.248 + 45.838)) / (11.614 / (11.614 + 44.43))
=0.1827194 / 0.20723003
=0.8817

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)
=(139.663 / 429.72) / (126.052 / 417.821)
=0.32500931 / 0.301689
=1.0773

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)
=((7.156 + 84.626) / 317.846) / ((7.551 + 72.357) / 308.731)
=0.28876248 / 0.25882726
=1.1157

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
=(8.663 - 0.309 - 24.356) / 317.846
=-0.0503

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 -2.79 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.94790.96441.04831.00540.92911.071.01040.91161.08430.9678
GMI 0.9770.98710.99370.99661.02291.02941.01191.00410.99370.9769
AQI 1.26251.32241.17130.90910.90190.74970.79690.79610.80451.017
SGI 1.03431.02191.03440.99740.97090.98560.99750.99721.03781.0285
DEPI 1.11651.27871.30341.27051.22391.0690.97110.9110.89210.8817
SGAI 0.95260.93820.95531.01291.00231.0010.97830.98711.02821.0773
LVGI 1.01910.9280.96680.93130.89870.93770.94990.97041.05931.1157
TATA -0.0482-0.021-0.0379-0.0044-0.0552-0.0952-0.0885-0.102-0.0447-0.0503
M-score -2.61-2.40-2.46-2.49-2.80-2.93-2.95-3.12-2.70-2.79
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