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Johnson Outdoors Inc (NAS:JOUT)
Beneish M-Score
-2.72 (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 -2.72 suggests that the company is not a manipulator.

JOUT' s Beneish M-Score Range Over the Past 10 Years
Min: -5.11   Max: -2.05
Current: -2.72

-5.11
-2.05

During the past 13 years, the highest Beneish M-Score of Johnson Outdoors Inc was -2.05. The lowest was -5.11. And the median was -2.61.


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 * 0.8858+0.528 * 0.9796+0.404 * 1.1124+0.892 * 1.0471+0.115 * 0.9936
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9391+4.679 * -0.0548-0.327 * 0.9049
=-2.72

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $102.8 Mil.
Revenue was 134.192 + 85.298 + 85.673 + 140.883 = $446.0 Mil.
Gross Profit was 54.995 + 33.299 + 33.711 + 58.752 = $180.8 Mil.
Total Current Assets was $248.1 Mil.
Total Assets was $354.8 Mil.
Property, Plant and Equipment(Net PPE) was $45.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.7 Mil.
Selling, General & Admin. Expense(SGA) was $132.8 Mil.
Total Current Liabilities was $86.1 Mil.
Long-Term Debt was $37.2 Mil.
Net Income was 9.321 + -0.534 + 1.167 + 9.997 = $20.0 Mil.
Non Operating Income was -0.182 + 0.563 + -1.261 + -0.115 = $-1.0 Mil.
Cash Flow from Operations was -1.938 + -33.557 + 20.105 + 55.793 = $40.4 Mil.
Accounts Receivable was $110.8 Mil.
Revenue was 133.111 + 70.822 + 84.904 + 137.133 = $426.0 Mil.
Gross Profit was 51.936 + 27.334 + 34.019 + 55.819 = $169.1 Mil.
Total Current Assets was $245.2 Mil.
Total Assets was $342.9 Mil.
Property, Plant and Equipment(Net PPE) was $44.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.3 Mil.
Selling, General & Admin. Expense(SGA) was $135.0 Mil.
Total Current Liabilities was $76.3 Mil.
Long-Term Debt was $55.3 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)
=(102.786 / 446.046) / (110.817 / 425.97)
=0.23043812 / 0.26015212
=0.8858

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)
=(33.299 / 425.97) / (54.995 / 446.046)
=0.39699509 / 0.40524296
=0.9796

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 - (248.066 + 45.862) / 354.789) / (1 - (245.239 + 44.741) / 342.851)
=0.1715414 / 0.15420985
=1.1124

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
=446.046 / 425.97
=1.0471

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))
=(11.304 / (11.304 + 44.741)) / (11.681 / (11.681 + 45.862))
=0.20169507 / 0.20299602
=0.9936

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)
=(132.758 / 446.046) / (134.998 / 425.97)
=0.29763298 / 0.31691903
=0.9391

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)
=((37.172 + 86.128) / 354.789) / ((55.333 + 76.34) / 342.851)
=0.3475305 / 0.38405313
=0.9049

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
=(19.951 - -0.995 - 40.403) / 354.789
=-0.0548

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 -2.72 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

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 1.05290.99290.94490.97311.00670.94430.85141.04831.01040.9959
GMI 0.98391.03131.06751.01810.92781.00261.00460.99371.01190.9936
AQI 1.02461.02460.4221.58960.88491.27050.90671.17130.79690.9554
SGI 1.03971.09160.97390.84731.07271.06531.0121.03440.99751.0119
DEPI 1.03371.09531.00280.78141.14840.98660.96641.30340.97110.9204
SGAI 0.97230.99551.03490.98780.97020.9770.9960.95530.97831.0693
LVGI 0.88931.01591.3260.80870.98790.81590.86570.96680.94991.0923
TATA 0.00550.0239-0.2925-0.1886-0.05660.0152-0.0844-0.0379-0.0885-0.0205
M-score -2.32-2.26-4.23-3.24-2.73-2.23-3.00-2.46-2.95-2.64

Johnson Outdoors Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.00540.92911.071.01040.91161.08430.96780.99591.08160.8858
GMI 0.99661.02291.02941.01191.00410.99370.97690.99360.99660.9796
AQI 0.90910.90190.74970.79690.94440.96111.0170.95541.10791.1124
SGI 0.99740.97090.98560.99750.99721.03781.02851.01191.06671.0471
DEPI 1.27051.22391.0690.97110.9110.89210.88170.92040.96470.9936
SGAI 1.01291.00231.0010.97830.98711.02821.07731.06931.00130.9391
LVGI 0.93130.89870.93770.94990.97041.05931.11571.09231.03310.9049
TATA -0.0044-0.0552-0.0952-0.0885-0.102-0.0447-0.0503-0.0205-0.0033-0.0548
M-score -2.49-2.80-2.93-2.95-3.06-2.63-2.79-2.64-2.33-2.72
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