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Johnson Outdoors Inc (NAS:JOUT)
Beneish M-Score
-2.95 (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 -2.95 suggests that the company is not a manipulator.

JOUT' s 10-Year Beneish M-Score Range
Min: -3.48   Max: -2.2
Current: -2.95

-3.48
-2.2

During the past 13 years, the highest Beneish M-Score of Johnson Outdoors Inc was -2.20. The lowest was -3.48. And the median was -2.70.


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 * 1.0104+0.528 * 1.0119+0.404 * 0.7969+0.892 * 0.9975+0.115 * 0.9711
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9783+4.679 * -0.0885-0.327 * 0.9499
=-2.95

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $44.5 Mil.
Revenue was 84.904 + 137.133 + 124.273 + 79.1 = $425.4 Mil.
Gross Profit was 34.019 + 55.819 + 48.846 + 29.929 = $168.6 Mil.
Total Current Assets was $197.6 Mil.
Total Assets was $288.6 Mil.
Property, Plant and Equipment(Net PPE) was $46.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.7 Mil.
Selling, General & Admin. Expense(SGA) was $127.0 Mil.
Total Current Liabilities was $60.2 Mil.
Long-Term Debt was $7.4 Mil.
Net Income was -0.786 + 4.698 + 7.404 + -2.193 = $9.1 Mil.
Non Operating Income was 0.347 + 0.952 + -0.024 + 0.159 = $1.4 Mil.
Cash Flow from Operations was 26.405 + 48.758 + -6.537 + -35.408 = $33.2 Mil.
Accounts Receivable was $44.1 Mil.
Revenue was 77.315 + 129.772 + 132.1 + 87.274 = $426.5 Mil.
Gross Profit was 28.814 + 54.337 + 54.084 + 33.814 = $171.0 Mil.
Total Current Assets was $188.6 Mil.
Total Assets was $288.4 Mil.
Property, Plant and Equipment(Net PPE) was $43.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.8 Mil.
Selling, General & Admin. Expense(SGA) was $130.1 Mil.
Total Current Liabilities was $63.4 Mil.
Long-Term Debt was $7.8 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)
=(44.452 / 425.41) / (44.104 / 426.461)
=0.10449214 / 0.1034186
=1.0104

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)
=(55.819 / 426.461) / (34.019 / 425.41)
=0.40108943 / 0.39635411
=1.0119

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 - (197.55 + 46.1) / 288.626) / (1 - (188.572 + 43.394) / 288.35)
=0.15582796 / 0.19554014
=0.7969

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
=425.41 / 426.461
=0.9975

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))
=(9.755 / (9.755 + 43.394)) / (10.743 / (10.743 + 46.1))
=0.18354061 / 0.18899425
=0.9711

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)
=(126.98 / 425.41) / (130.112 / 426.461)
=0.29848852 / 0.30509707
=0.9783

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)
=((7.431 + 60.232) / 288.626) / ((7.794 + 63.372) / 288.35)
=0.23443141 / 0.24680423
=0.9499

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
=(9.123 - 1.434 - 33.218) / 288.626
=-0.0885

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 -2.95 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.92940.85140.93410.94790.96441.04831.00540.92911.071.0104
GMI 1.02131.00461.00430.9770.98710.99370.99661.02291.02941.0119
AQI 1.22290.90671.14281.26251.32241.17130.90910.90190.74970.7969
SGI 1.0241.0121.02571.03431.02191.03440.99740.97090.98560.9975
DEPI 0.92470.96641.03231.11651.27871.30341.27051.22391.0690.9711
SGAI 0.99030.9960.94320.95260.93820.95531.01291.00231.0010.9783
LVGI 0.87890.86570.98311.01910.9280.96680.93130.89870.93770.9499
TATA -0.036-0.0844-0.0877-0.0482-0.021-0.0379-0.0044-0.0552-0.0952-0.0885
M-score -2.56-3.00-2.85-2.61-2.40-2.46-2.49-2.80-2.93-2.95
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