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Johnson Outdoors Inc (NAS:JOUT)
Beneish M-Score
-3.12 (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 -3.12 suggests that the company is not a manipulator.

JOUT' s 10-Year Beneish M-Score Range
Min: -4.38   Max: -2.05
Current: -3.12

-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 -2.57.


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 * 0.9116+0.528 * 1.0041+0.404 * 0.7961+0.892 * 0.9972+0.115 * 0.911
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9871+4.679 * -0.102-0.327 * 0.9704
=-3.12

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $57.3 Mil.
Revenue was 70.822 + 84.904 + 137.133 + 124.273 = $417.1 Mil.
Gross Profit was 27.334 + 34.019 + 55.819 + 48.846 = $166.0 Mil.
Total Current Assets was $216.2 Mil.
Total Assets was $305.9 Mil.
Property, Plant and Equipment(Net PPE) was $45.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.2 Mil.
Selling, General & Admin. Expense(SGA) was $128.4 Mil.
Total Current Liabilities was $61.2 Mil.
Long-Term Debt was $32.1 Mil.
Net Income was -4.194 + -0.786 + 4.698 + 7.404 = $7.1 Mil.
Non Operating Income was 0.572 + 0.347 + 0.952 + -0.024 = $1.8 Mil.
Cash Flow from Operations was -32.15 + 26.405 + 48.758 + -6.537 = $36.5 Mil.
Accounts Receivable was $63.0 Mil.
Revenue was 79.1 + 77.315 + 129.772 + 132.1 = $418.3 Mil.
Gross Profit was 29.929 + 28.814 + 54.337 + 54.084 = $167.2 Mil.
Total Current Assets was $211.2 Mil.
Total Assets was $312.9 Mil.
Property, Plant and Equipment(Net PPE) was $44.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.8 Mil.
Selling, General & Admin. Expense(SGA) was $130.4 Mil.
Total Current Liabilities was $60.4 Mil.
Long-Term Debt was $38.0 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)
=(57.254 / 417.132) / (62.982 / 418.287)
=0.13725631 / 0.15057126
=0.9116

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)
=(34.019 / 418.287) / (27.334 / 417.132)
=0.39963948 / 0.39799872
=1.0041

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 - (216.233 + 45.13) / 305.921) / (1 - (211.195 + 44.443) / 312.886)
=0.14565198 / 0.1829676
=0.7961

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
=417.132 / 418.287
=0.9972

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))
=(9.802 / (9.802 + 44.443)) / (11.167 / (11.167 + 45.13))
=0.18069868 / 0.1983587
=0.911

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)
=(128.4 / 417.132) / (130.439 / 418.287)
=0.30781623 / 0.31184091
=0.9871

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)
=((32.082 + 61.224) / 305.921) / ((37.96 + 60.385) / 312.886)
=0.30500031 / 0.31431576
=0.9704

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
=(7.122 - 1.847 - 36.476) / 305.921
=-0.102

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 -3.12 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.85140.93410.94790.96441.04831.00540.92911.071.01040.9116
GMI 1.00461.00430.9770.98710.99370.99661.02291.02941.01191.0041
AQI 0.90671.14281.26251.32241.17130.90910.90190.74970.79690.7961
SGI 1.0121.02571.03431.02191.03440.99740.97090.98560.99750.9972
DEPI 0.96641.03231.11651.27871.30341.27051.22391.0690.97110.911
SGAI 0.9960.94320.95260.93820.95531.01291.00231.0010.97830.9871
LVGI 0.86570.98311.01910.9280.96680.93130.89870.93770.94990.9704
TATA -0.0844-0.0877-0.0482-0.021-0.0379-0.0044-0.0552-0.0952-0.0885-0.102
M-score -3.00-2.85-2.61-2.40-2.46-2.49-2.80-2.93-2.95-3.12
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