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Johnson Outdoors Inc (NAS:JOUT)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

JOUT' s 10-Year Beneish M-Score Range
Min: -4.38   Max: -2.05
Current: -2.8

-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 -2.56.


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 * 0.9291+0.528 * 1.0229+0.404 * 0.9019+0.892 * 0.9709+0.115 * 1.2239
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0023+4.679 * -0.0552-0.327 * 0.8987
=-2.80

* 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 $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.
Net Income was 7.404 + -2.193 + -3.511 + 13.654 = $15.4 Mil.
Non Operating Income was -0.024 + 0.159 + 0.334 + -0.451 = $0.0 Mil.
Cash Flow from Operations was -6.537 + -35.408 + 27.545 + 48.961 = $34.6 Mil.
Accounts Receivable was $109.2 Mil.
Revenue was 132.1 + 87.274 + 74.795 + 128.595 = $422.8 Mil.
Gross Profit was 54.084 + 33.814 + 28.447 + 54.247 = $170.6 Mil.
Total Current Assets was $248.0 Mil.
Total Assets was $348.5 Mil.
Property, Plant and Equipment(Net PPE) was $38.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.9 Mil.
Selling, General & Admin. Expense(SGA) was $130.0 Mil.
Total Current Liabilities was $132.5 Mil.
Long-Term Debt was $8.1 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)
=(98.484 / 410.46) / (109.176 / 422.764)
=0.23993568 / 0.25824337
=0.9291

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)
=(29.929 / 422.764) / (48.846 / 410.46)
=0.40351591 / 0.39449885
=1.0229

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 - (247.408 + 45.198) / 348.529) / (1 - (248.024 + 38.48) / 348.505)
=0.16045437 / 0.17790563
=0.9019

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
=410.46 / 422.764
=0.9709

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))
=(10.867 / (10.867 + 38.48)) / (9.917 / (9.917 + 45.198))
=0.22021602 / 0.17993287
=1.2239

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)
=(126.514 / 410.46) / (130.012 / 422.764)
=0.30822492 / 0.30752855
=1.0023

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)
=((49.627 + 76.735) / 348.529) / ((8.057 + 132.533) / 348.505)
=0.36255807 / 0.40340885
=0.8987

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
=(15.354 - 0.018 - 34.561) / 348.529
=-0.0552

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 -2.80 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 1.02580.921.03690.99620.94180.97311.00670.94430.85141.0483
GMI 0.97511.01170.98391.02421.07491.01810.92781.00261.00460.9937
AQI 1.1881.05551.02461.02460.4221.58960.88491.27050.90671.1713
SGI 1.12471.07151.03971.0880.97720.84731.07271.06531.0121.0344
DEPI 1.03840.87341.02521.09531.00280.78141.18750.95410.96641.3034
SGAI 0.96931.01920.97160.991.04070.99440.96380.9770.9960.9553
LVGI 0.93510.87940.88931.01591.3260.80870.98790.81590.86570.9668
TATA -0.0466-0.07040.00550.031-0.1318-0.1888-0.05660.0152-0.0844-0.0379
M-score -2.47-2.77-2.34-2.23-3.48-3.24-2.73-2.23-3.00-2.46

Johnson Outdoors Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.03040.98120.92940.85140.93410.94790.96441.04831.00540.9291
GMI 1.01011.03171.02131.00461.00430.9770.98710.99370.99661.0229
AQI 1.31721.24081.22290.90671.14281.26251.32241.17130.90910.9019
SGI 1.04671.00521.0241.0121.02571.03431.02191.03440.99740.9709
DEPI 0.93510.91310.92470.96641.03231.11651.27871.30341.27051.2239
SGAI 1.00391.00280.99030.9960.94320.95260.93820.95531.01291.0023
LVGI 0.81010.8350.87890.86570.98311.01910.9280.96680.93130.8987
TATA 0.0368-0.0176-0.036-0.0844-0.0877-0.0482-0.021-0.0379-0.0044-0.0552
M-score -2.05-2.42-2.56-3.00-2.85-2.61-2.40-2.46-2.49-2.80
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