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Jakks Pacific Inc (NAS:JAKK)
Beneish M-Score
-2.71 (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.

Jakks Pacific Inc has a M-score of -2.71 suggests that the company is not a manipulator.

JAKK' s Beneish M-Score Range Over the Past 10 Years
Min: -7.03   Max: 0.01
Current: -2.71

-7.03
0.01

During the past 13 years, the highest Beneish M-Score of Jakks Pacific Inc was 0.01. The lowest was -7.03. And the median was -2.48.


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 Jakks Pacific 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 * 1.3059+0.528 * 0.9413+0.404 * 0.9349+0.892 * 0.8687+0.115 * 1.078
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1615+4.679 * -0.0668-0.327 * 1.0204
=-2.71

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $132.9 Mil.
Revenue was 140.977 + 95.809 + 163.407 + 337.027 = $737.2 Mil.
Gross Profit was 44.8 + 31.183 + 49.575 + 104.329 = $229.9 Mil.
Total Current Assets was $352.5 Mil.
Total Assets was $469.9 Mil.
Property, Plant and Equipment(Net PPE) was $24.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.8 Mil.
Selling, General & Admin. Expense(SGA) was $207.1 Mil.
Total Current Liabilities was $136.1 Mil.
Long-Term Debt was $207.5 Mil.
Net Income was -4.369 + -17.415 + -9.33 + 45.845 = $14.7 Mil.
Non Operating Income was 0.861 + 0.075 + 1.017 + 5.702 = $7.7 Mil.
Cash Flow from Operations was -10.167 + 32.609 + 56.181 + -40.143 = $38.5 Mil.
Accounts Receivable was $117.1 Mil.
Revenue was 131.106 + 114.201 + 254.016 + 349.362 = $848.7 Mil.
Gross Profit was 39.287 + 35.378 + 79.697 + 94.737 = $249.1 Mil.
Total Current Assets was $383.0 Mil.
Total Assets was $510.7 Mil.
Property, Plant and Equipment(Net PPE) was $19.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.2 Mil.
Selling, General & Admin. Expense(SGA) was $205.2 Mil.
Total Current Liabilities was $150.9 Mil.
Long-Term Debt was $215.0 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)
=(132.892 / 737.22) / (117.148 / 848.685)
=0.18026098 / 0.13803472
=1.3059

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)
=(249.099 / 848.685) / (229.887 / 737.22)
=0.29351173 / 0.31182958
=0.9413

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 - (352.523 + 24.1) / 469.892) / (1 - (382.963 + 19.315) / 510.705)
=0.19849029 / 0.21230848
=0.9349

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
=737.22 / 848.685
=0.8687

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))
=(21.222 / (21.222 + 19.315)) / (22.753 / (22.753 + 24.1))
=0.52352172 / 0.48562525
=1.078

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)
=(207.066 / 737.22) / (205.236 / 848.685)
=0.28087409 / 0.24182824
=1.1615

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)
=((207.526 + 136.052) / 469.892) / ((215 + 150.94) / 510.705)
=0.73118504 / 0.7165389
=1.0204

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
=(14.731 - 7.655 - 38.48) / 469.892
=-0.0668

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.

Jakks Pacific Inc has a M-score of -2.71 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.

Jakks Pacific Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.51771.01740.80260.98961.01380.9331.03431.01121.81020.7568
GMI 1.04671.021.0621.40820.77031.14520.96421.20610.84550.9498
AQI 1.11830.94411.15290.32370.99711.00251.45151.0930.76861.0319
SGI 1.1571.11981.0540.88960.92980.9070.98380.94931.27990.9206
DEPI 0.90521.09581.12810.78171.00091.02061.01130.88341.03861.2488
SGAI 0.97920.95551.05671.05760.92261.0911.11380.99930.79761.052
LVGI 1.0380.89330.90121.55650.88421.03271.62131.11651.14330.9432
TATA -0.0052-0.0202-0.0018-0.7383-0.0416-0.0679-0.2381-0.07630.1679-0.1017
M-score -1.84-2.41-2.49-6.32-2.80-2.89-3.63-2.78-0.88-3.23

Jakks Pacific Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.05961.11161.06911.81021.20840.82730.79820.75680.94821.3059
GMI 1.20370.82840.83680.84550.83170.99580.90810.94980.95370.9413
AQI 1.07080.74550.79640.76860.82130.94670.96741.03190.94760.9349
SGI 0.94931.03641.10351.27991.32071.29511.20550.92060.86410.8687
DEPI 0.88060.96730.89531.03861.1041.20711.33881.24881.18061.078
SGAI 0.93680.84170.81620.79760.81260.84440.95011.0521.14541.1615
LVGI 1.11331.26911.15241.14331.09180.91860.94340.94320.98621.0204
TATA -0.04540.00940.04310.16790.11390.0435-0.0128-0.1017-0.1281-0.0668
M-score -2.59-2.56-2.32-0.88-1.62-2.12-2.54-3.23-3.29-2.71
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