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Johnson Outdoors Inc (NAS:JOUT)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

JOUT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48   Max: -2.2
Current: -2.64

-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 -2.66.


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 * 0.9959+0.528 * 0.9936+0.404 * 0.9554+0.892 * 1.0119+0.115 * 0.9204
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0693+4.679 * -0.0205-0.327 * 1.0923
=-2.64

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $44.8 Mil.
Revenue was 85.673 + 140.883 + 133.111 + 70.822 = $430.5 Mil.
Gross Profit was 33.711 + 58.752 + 51.936 + 27.334 = $171.7 Mil.
Total Current Assets was $209.4 Mil.
Total Assets was $299.2 Mil.
Property, Plant and Equipment(Net PPE) was $45.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.7 Mil.
Selling, General & Admin. Expense(SGA) was $137.4 Mil.
Total Current Liabilities was $69.6 Mil.
Long-Term Debt was $7.1 Mil.
Net Income was 1.167 + 9.997 + 3.646 + -4.194 = $10.6 Mil.
Non Operating Income was -1.261 + -0.115 + -0.495 + 0.572 = $-1.3 Mil.
Cash Flow from Operations was 20.105 + 55.793 + -25.692 + -32.15 = $18.1 Mil.
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.



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)
=(44.798 / 430.489) / (44.452 / 425.41)
=0.10406305 / 0.10449214
=0.9959

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)
=(58.752 / 425.41) / (33.711 / 430.489)
=0.39635411 / 0.39892541
=0.9936

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 - (209.37 + 45.287) / 299.204) / (1 - (197.55 + 46.1) / 288.626)
=0.14888504 / 0.15582796
=0.9554

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
=430.489 / 425.41
=1.0119

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))
=(10.743 / (10.743 + 46.1)) / (11.702 / (11.702 + 45.287))
=0.18899425 / 0.20533787
=0.9204

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)
=(137.397 / 430.489) / (126.98 / 425.41)
=0.31916495 / 0.29848852
=1.0693

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)
=((7.062 + 69.554) / 299.204) / ((7.431 + 60.232) / 288.626)
=0.2560661 / 0.23443141
=1.0923

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
=(10.616 - -1.299 - 18.056) / 299.204
=-0.0205

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 -2.64 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 1.05290.99620.94180.97311.00670.94430.85141.04831.01040.9959
GMI 0.98391.02421.07491.01810.92781.00261.00460.99371.01190.9936
AQI 1.02461.02460.4221.58960.88491.27050.90671.17130.79690.9554
SGI 1.03971.0880.97720.84731.07271.06531.0121.03440.99751.0119
DEPI 1.02521.09531.00280.78141.18750.95410.96641.30340.97110.9204
SGAI 0.97160.991.04070.99440.96380.9770.9960.95530.97831.0693
LVGI 0.88931.01591.3260.80870.98790.81590.86570.96680.94991.0923
TATA 0.00550.031-0.1318-0.1888-0.05660.0152-0.0844-0.0379-0.0885-0.0205
M-score -2.32-2.23-3.48-3.24-2.73-2.23-3.00-2.46-2.95-2.64

Johnson Outdoors Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.96441.04831.00540.92911.071.01040.91161.08430.96780.9959
GMI 0.98710.99370.99661.02291.02941.01191.00410.99370.97690.9936
AQI 1.32241.17130.90910.90190.74970.79690.79610.80451.0170.9554
SGI 1.02191.03440.99740.97090.98560.99750.99721.03781.02851.0119
DEPI 1.27871.30341.27051.22391.0690.97110.9110.89210.88170.9204
SGAI 0.93820.95531.01291.00231.0010.97830.98711.02821.07731.0693
LVGI 0.9280.96680.93130.89870.93770.94990.97041.05931.11571.0923
TATA -0.021-0.0379-0.0044-0.0552-0.0952-0.0885-0.102-0.0447-0.0503-0.0205
M-score -2.40-2.46-2.49-2.80-2.93-2.95-3.12-2.70-2.79-2.64
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