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Jakks Pacific Inc (NAS:JAKK)
Beneish M-Score
-2.91 (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 -2.91 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: -2.91

-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 -2.49.


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 * 1.106+0.528 * 0.9862+0.404 * 0.9645+0.892 * 0.8405+0.115 * 1.016
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1557+4.679 * -0.0704-0.327 * 1.0171
=-2.91

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $272.3 Mil.
Revenue was 302.791 + 140.977 + 95.809 + 163.407 = $703.0 Mil.
Gross Profit was 94.933 + 44.8 + 31.183 + 49.575 = $220.5 Mil.
Total Current Assets was $446.7 Mil.
Total Assets was $560.1 Mil.
Property, Plant and Equipment(Net PPE) was $22.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.6 Mil.
Selling, General & Admin. Expense(SGA) was $207.9 Mil.
Total Current Liabilities was $199.1 Mil.
Long-Term Debt was $207.9 Mil.
Net Income was 30.612 + -4.369 + -17.415 + -9.33 = $-0.5 Mil.
Non Operating Income was 0.207 + 0.861 + 0.075 + 1.017 = $2.2 Mil.
Cash Flow from Operations was -43.104 + -10.167 + 32.609 + 57.42 = $36.8 Mil.
Accounts Receivable was $292.9 Mil.
Revenue was 337.027 + 131.106 + 114.201 + 254.016 = $836.4 Mil.
Gross Profit was 104.329 + 39.287 + 35.378 + 79.697 = $258.7 Mil.
Total Current Assets was $513.5 Mil.
Total Assets was $639.6 Mil.
Property, Plant and Equipment(Net PPE) was $18.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.0 Mil.
Selling, General & Admin. Expense(SGA) was $214.0 Mil.
Total Current Liabilities was $241.9 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)
=(272.257 / 702.984) / (292.861 / 836.35)
=0.38728762 / 0.3501656
=1.106

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)
=(258.691 / 836.35) / (220.491 / 702.984)
=0.3093095 / 0.3136501
=0.9862

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 - (446.679 + 22.698) / 560.123) / (1 - (513.525 + 18.604) / 639.557)
=0.16201084 / 0.16797252
=0.9645

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
=702.984 / 836.35
=0.8405

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))
=(19.969 / (19.969 + 18.604)) / (23.58 / (23.58 + 22.698))
=0.51769372 / 0.50952937
=1.016

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)
=(207.885 / 702.984) / (214.012 / 836.35)
=0.29571797 / 0.25588809
=1.1557

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)
=((207.933 + 199.105) / 560.123) / ((215 + 241.947) / 639.557)
=0.72669396 / 0.71447424
=1.0171

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
=(-0.502 - 2.16 - 36.758) / 560.123
=-0.0704

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 -2.91 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 local exchange's 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 1.11830.94411.15290.32370.99711.00251.45151.0930.76860.9825
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 1.0380.89330.90121.55650.88421.03271.62131.11651.14330.9313
TATA -0.0052-0.0202-0.0018-0.7383-0.0416-0.0679-0.2381-0.07630.1679-0.103
M-score -1.84-2.41-2.49-6.32-2.80-2.89-3.63-2.78-0.88-3.25

Jakks Pacific Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.11161.06911.81021.20840.82730.79820.75680.94821.30591.106
GMI 0.82840.83680.84550.83170.99580.90810.94980.95370.94130.9862
AQI 0.74550.79640.76860.82130.94670.96740.98250.94760.93490.9645
SGI 1.03641.10351.27991.32071.29511.20550.92060.86410.86870.8405
DEPI 0.96730.89531.03861.1041.20711.33881.24881.18061.0781.016
SGAI 0.84170.81620.79760.81260.84440.95011.0521.14541.16151.1557
LVGI 1.26911.15241.14331.09180.91860.94340.93130.98621.02041.0171
TATA 0.00940.04310.16790.11390.0435-0.0109-0.103-0.1281-0.0668-0.0704
M-score -2.56-2.32-0.88-1.62-2.12-2.53-3.25-3.29-2.71-2.91
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