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Johnson Outdoors Inc (NAS:JOUT)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

JOUT' s 10-Year Beneish M-Score Range
Min: -4.38   Max: -2.05
Current: -2.93

-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 * 1.07+0.528 * 1.0294+0.404 * 0.7497+0.892 * 0.9856+0.115 * 1.069
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.001+4.679 * -0.0952-0.327 * 0.9377
=-2.93

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 4.698 + 7.404 + -2.193 + -3.511 = $6.4 Mil.
Non Operating Income was 0.952 + -0.024 + 0.159 + 0.334 = $1.4 Mil.
Cash Flow from Operations was 48.758 + -6.537 + -35.408 + 27.545 = $34.4 Mil.
Accounts Receivable was $75.9 Mil.
Revenue was 129.772 + 132.1 + 87.274 + 74.795 = $423.9 Mil.
Gross Profit was 54.337 + 54.084 + 33.814 + 28.447 = $170.7 Mil.
Total Current Assets was $203.5 Mil.
Total Assets was $306.7 Mil.
Property, Plant and Equipment(Net PPE) was $41.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.0 Mil.
Selling, General & Admin. Expense(SGA) was $127.8 Mil.
Total Current Liabilities was $76.7 Mil.
Long-Term Debt was $7.9 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)
=(80.036 / 417.821) / (75.894 / 423.941)
=0.19155571 / 0.17902019
=1.07

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)
=(48.846 / 423.941) / (55.819 / 417.821)
=0.40260791 / 0.39109571
=1.0294

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 - (215.99 + 45.838) / 308.731) / (1 - (203.519 + 41.021) / 306.689)
=0.1519219 / 0.20264502
=0.7497

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
=417.821 / 423.941
=0.9856

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))
=(9.957 / (9.957 + 41.021)) / (10.248 / (10.248 + 45.838))
=0.19531955 / 0.1827194
=1.069

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)
=(126.052 / 417.821) / (127.771 / 423.941)
=0.301689 / 0.30138864
=1.001

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)
=((7.551 + 72.357) / 308.731) / ((7.917 + 76.733) / 306.689)
=0.25882726 / 0.27601251
=0.9377

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
=(6.398 - 1.421 - 34.358) / 308.731
=-0.0952

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 -2.93 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 1.02580.9061.05290.99860.93950.97311.00670.94430.85141.0483
GMI 0.97511.01170.98391.03131.06751.01810.92781.00261.00460.9937
AQI 1.1881.05551.02461.02470.42191.58960.88491.27050.90671.1713
SGI 1.12471.07151.03971.09160.97390.84731.07271.06531.0121.0344
DEPI 1.03370.87021.03371.10160.99710.78141.14840.98660.96641.3034
SGAI 0.96841.01940.97230.99551.03490.98780.97020.9770.9960.9553
LVGI 0.93510.87940.88931.01581.3260.80870.98790.81590.86570.9668
TATA -0.0466-0.07040.00550.0287-0.1318-0.1886-0.05660.0152-0.0844-0.0379
M-score -2.47-2.78-2.32-2.23-3.49-3.24-2.73-2.23-3.00-2.46

Johnson Outdoors Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.98120.92940.85140.93460.94790.96441.04831.00480.92911.07
GMI 1.03171.02131.00461.00430.9770.98710.99370.99661.02291.0294
AQI 1.24081.22290.90671.08441.22491.32241.17130.9580.92960.7497
SGI 1.00521.0241.0121.02571.03431.02191.03440.99740.97090.9856
DEPI 0.94390.95460.96641.03061.11471.27871.30341.27261.22591.069
SGAI 1.00280.99030.9960.94320.95260.93820.95531.01291.00231.001
LVGI 0.8350.87890.86570.99961.0260.9280.96680.9160.89270.9377
TATA -0.0176-0.036-0.0844-0.0888-0.0485-0.021-0.0379-0.0044-0.0552-0.0952
M-score -2.41-2.55-3.00-2.88-2.63-2.40-2.46-2.46-2.79-2.93
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