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Jakks Pacific Inc (NAS:JAKK)
Beneish M-Score
-3.23 (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 -3.23 suggests that the company is not a manipulator.

JAKK' s Beneish M-Score Range Over the Past 10 Years
Min: -6.32   Max: -0.88
Current: -3.23

-6.32
-0.88

During the past 13 years, the highest Beneish M-Score of Jakks Pacific Inc was -0.88. The lowest was -6.32. And the median was -2.63.


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 * 0.7568+0.528 * 0.9498+0.404 * 1.0319+0.892 * 0.9206+0.115 * 1.2488
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.052+4.679 * -0.1017-0.327 * 0.9432
=-3.23

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $163.4 Mil.
Revenue was 163.407 + 337.027 + 131.106 + 114.201 = $745.7 Mil.
Gross Profit was 49.575 + 104.329 + 39.287 + 35.378 = $228.6 Mil.
Total Current Assets was $382.4 Mil.
Total Assets was $505.9 Mil.
Property, Plant and Equipment(Net PPE) was $18.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.9 Mil.
Selling, General & Admin. Expense(SGA) was $198.0 Mil.
Total Current Liabilities was $130.1 Mil.
Long-Term Debt was $215.0 Mil.
Net Income was -9.33 + 45.845 + -5.68 + -7.581 = $23.3 Mil.
Non Operating Income was 1.017 + 5.702 + 1.684 + 0 = $8.4 Mil.
Cash Flow from Operations was 56.181 + -40.143 + 11.462 + 38.788 = $66.3 Mil.
Accounts Receivable was $234.5 Mil.
Revenue was 254.016 + 349.362 + 124.172 + 82.51 = $810.1 Mil.
Gross Profit was 79.697 + 94.737 + 37.818 + 23.555 = $235.8 Mil.
Total Current Assets was $437.6 Mil.
Total Assets was $561.8 Mil.
Property, Plant and Equipment(Net PPE) was $11.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.9 Mil.
Selling, General & Admin. Expense(SGA) was $204.5 Mil.
Total Current Liabilities was $191.3 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)
=(163.387 / 745.741) / (234.516 / 810.06)
=0.21909349 / 0.28950448
=0.7568

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)
=(104.329 / 810.06) / (49.575 / 745.741)
=0.29109819 / 0.30649917
=0.9498

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 - (382.368 + 18.435) / 505.9) / (1 - (437.593 + 11.096) / 561.782)
=0.20774264 / 0.20131118
=1.0319

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
=745.741 / 810.06
=0.9206

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))
=(21.883 / (21.883 + 11.096)) / (20.902 / (20.902 + 18.435))
=0.66354347 / 0.53135725
=1.2488

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)
=(198.039 / 745.741) / (204.48 / 810.06)
=0.26556003 / 0.25242575
=1.052

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 + 130.14) / 505.9) / ((215 + 191.348) / 561.782)
=0.68222969 / 0.72331972
=0.9432

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
=(23.254 - 8.403 - 66.288) / 505.9
=-0.1017

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 -3.23 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 -0.0052-0.0202-0.0018-0.7383-0.0416-0.0679-0.2381-0.07620.1679-0.1017
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

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.01121.05961.11161.06911.81021.20840.82730.79820.75680.9482
GMI 1.20611.20370.82840.83680.84550.83170.99580.90810.94980.9537
AQI 1.0931.07080.74550.79640.76860.82130.94670.96741.03190.9476
SGI 0.94930.94931.03641.10351.27991.32071.29511.20550.92060.8641
DEPI 0.88340.88060.96730.89531.03861.1041.20711.33881.24881.234
SGAI 0.99930.93680.84170.81620.79760.81260.84440.95011.0521.1295
LVGI 1.11651.11331.26911.15241.14331.09180.91860.94340.94320.9862
TATA -0.0763-0.04540.00940.04310.16790.11390.0435-0.0128-0.1017-0.0524
M-score -2.78-2.59-2.56-2.32-0.88-1.62-2.12-2.54-3.23-2.93
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