Switch to:
Jakks Pacific Inc (NAS:JAKK)
Beneish M-Score
-2.32 (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 -2.32 suggests that the company is not a manipulator.

JAKK' s 10-Year Beneish M-Score Range
Min: -7.03   Max: 0.02
Current: -2.32

-7.03
0.02

During the past 13 years, the highest Beneish M-Score of Jakks Pacific Inc was 0.02. The lowest was -7.03. And the median was -2.56.


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 * 1.0691+0.528 * 0.8368+0.404 * 0.7964+0.892 * 1.1035+0.115 * 0.8953
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8162+4.679 * 0.0432-0.327 * 1.1524
=-2.32

* 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 $304.3 Mil.
Revenue was 349.362 + 124.172 + 82.51 + 137.73 = $693.8 Mil.
Gross Profit was 94.737 + 37.818 + 23.555 + 38.767 = $194.9 Mil.
Total Current Assets was $539.6 Mil.
Total Assets was $665.8 Mil.
Property, Plant and Equipment(Net PPE) was $10.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.8 Mil.
Selling, General & Admin. Expense(SGA) was $186.9 Mil.
Total Current Liabilities was $289.2 Mil.
Long-Term Debt was $215.0 Mil.
Net Income was 44.069 + -9.053 + -16.305 + -16.068 = $2.6 Mil.
Non Operating Income was 5.932 + 0 + 0.314 + 4.876 = $11.1 Mil.
Cash Flow from Operations was -72.548 + -21.582 + -11.05 + 67.932 = $-37.2 Mil.
Accounts Receivable was $258.0 Mil.
Revenue was 310.894 + 106.232 + 78.069 + 133.507 = $628.7 Mil.
Gross Profit was 91.395 + 2.238 + 23.379 + 30.766 = $147.8 Mil.
Total Current Assets was $423.5 Mil.
Total Assets was $557.1 Mil.
Property, Plant and Equipment(Net PPE) was $12.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.8 Mil.
Selling, General & Admin. Expense(SGA) was $207.5 Mil.
Total Current Liabilities was $228.3 Mil.
Long-Term Debt was $137.8 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)
=(304.338 / 693.774) / (257.965 / 628.702)
=0.43867023 / 0.41031363
=1.0691

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)
=(37.818 / 628.702) / (94.737 / 693.774)
=0.23505254 / 0.28089407
=0.8368

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 - (539.603 + 10.552) / 665.756) / (1 - (423.539 + 12.094) / 557.094)
=0.17363869 / 0.21802604
=0.7964

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
=693.774 / 628.702
=1.1035

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))
=(19.779 / (19.779 + 12.094)) / (23.831 / (23.831 + 10.552))
=0.62055658 / 0.69310415
=0.8953

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)
=(186.86 / 693.774) / (207.473 / 628.702)
=0.26933843 / 0.33000213
=0.8162

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)
=((215 + 289.202) / 665.756) / ((137.826 + 228.294) / 557.094)
=0.75733752 / 0.65719609
=1.1524

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
=(2.643 - 11.122 - -37.248) / 665.756
=0.0432

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 -2.32 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.6530.74021.51771.01740.80260.98961.01380.9331.03431.0112
GMI 1.0190.97621.04671.021.0621.40820.77031.14520.96421.2061
AQI 1.00320.9321.11830.94411.15290.32370.99711.00251.45151.093
SGI 1.81861.1521.1571.11981.0540.88960.92980.9070.98380.9493
DEPI 0.64461.2050.90521.09581.12810.78171.00091.02061.01130.8834
SGAI 0.89570.90050.97920.95551.05671.05760.92261.0911.11380.9993
LVGI 1.2370.85081.0380.89330.90121.55650.88421.03271.62131.1165
TATA -0.1373-0.0207-0.0052-0.0202-0.0018-0.7383-0.0416-0.0679-0.2381-0.0762
M-score -2.80-2.63-1.84-2.41-2.49-6.32-2.80-2.89-3.63-2.78

Jakks Pacific Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.20651.10291.03431.1250.85461.14031.01121.05961.11161.0691
GMI 1.16181.18630.96420.96681.16391.17431.20611.20370.82840.8368
AQI 0.95431.84291.45151.49261.83320.88531.0931.07080.74550.7964
SGI 0.92190.91790.98380.98910.91340.93230.94930.94931.03641.1035
DEPI 1.00650.93671.01130.96990.93091.03370.88340.88060.96730.8953
SGAI 1.10811.15641.11381.10761.17591.09010.99930.93680.84170.8162
LVGI 1.14141.26891.62131.72661.60341.28321.11651.11331.26911.1524
TATA -0.0661-0.0486-0.2381-0.2656-0.3933-0.1946-0.0762-0.04530.00950.0432
M-score -2.67-2.37-3.63-3.70-4.34-3.38-2.78-2.59-2.56-2.32
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK