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JB Hunt Transport Services Inc (NAS:JBHT)
Beneish M-Score
-3.01 (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.

JB Hunt Transport Services Inc has a M-score of -3.01 suggests that the company is not a manipulator.

JBHT' s Beneish M-Score Range Over the Past 10 Years
Min: -5.41   Max: -1.89
Current: -3.01

-5.41
-1.89

During the past 13 years, the highest Beneish M-Score of JB Hunt Transport Services Inc was -1.89. The lowest was -5.41. And the median was -2.87.


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 JB Hunt Transport Services 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 * 1.0803+0.528 * 0.9208+0.404 * 1.1997+0.892 * 1.0125+0.115 * 0.9555
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0849+4.679 * -0.1336-0.327 * 1.0427
=-3.01

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $690 Mil.
Revenue was 1528.712 + 1621.015 + 1586.494 + 1539.957 = $6,276 Mil.
Gross Profit was 640.586 + 605.405 + 666.642 + 656.763 = $2,569 Mil.
Total Current Assets was $815 Mil.
Total Assets was $3,647 Mil.
Property, Plant and Equipment(Net PPE) was $2,739 Mil.
Depreciation, Depletion and Amortization(DDA) was $347 Mil.
Selling, General & Admin. Expense(SGA) was $1,494 Mil.
Total Current Liabilities was $581 Mil.
Long-Term Debt was $961 Mil.
Net Income was 100.098 + 116.745 + 115.139 + 103.419 = $435 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 304.896 + 176.348 + 243.423 + 197.994 = $923 Mil.
Accounts Receivable was $631 Mil.
Revenue was 1440.18 + 1609.511 + 1601.156 + 1547.867 = $6,199 Mil.
Gross Profit was 581.041 + 556.628 + 611.583 + 587.56 = $2,337 Mil.
Total Current Assets was $804 Mil.
Total Assets was $3,429 Mil.
Property, Plant and Equipment(Net PPE) was $2,553 Mil.
Depreciation, Depletion and Amortization(DDA) was $307 Mil.
Selling, General & Admin. Expense(SGA) was $1,360 Mil.
Total Current Liabilities was $762 Mil.
Long-Term Debt was $628 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)
=(690.352 / 6276.178) / (631.172 / 6198.714)
=0.10999561 / 0.10182306
=1.0803

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)
=(605.405 / 6198.714) / (640.586 / 6276.178)
=0.37698335 / 0.40938864
=0.9208

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 - (814.93 + 2739.366) / 3646.958) / (1 - (803.512 + 2552.863) / 3428.997)
=0.02540802 / 0.02117879
=1.1997

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
=6276.178 / 6198.714
=1.0125

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))
=(306.907 / (306.907 + 2552.863)) / (346.587 / (346.587 + 2739.366))
=0.10731877 / 0.11231117
=0.9555

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)
=(1494.444 / 6276.178) / (1360.45 / 6198.714)
=0.23811371 / 0.21947294
=1.0849

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)
=((961.346 + 580.714) / 3646.958) / ((628.203 + 762.331) / 3428.997)
=0.42283459 / 0.40552208
=1.0427

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
=(435.401 - 0 - 922.661) / 3646.958
=-0.1336

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.

JB Hunt Transport Services Inc has a M-score of -3.01 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.

JB Hunt Transport Services Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.94740.90940.79471.28840.95560.98191.01421.10431.04170.9975
GMI 1.03151.02951.01020.98081.03661.15471.0341.00070.98070.9021
AQI 0.66360.94190.73021.7960.93481.19250.84190.9581.06512.0458
SGI 1.0641.04871.06940.85841.18421.19331.11671.10481.1041.0036
DEPI 1.07040.9541.03031.10030.98451.06631.01721.01181.010.9496
SGAI 0.97341.07247.3011.09380.94440.89410.9251.00631.02621.0899
LVGI 1.4461.72980.79640.8731.0941.02090.87980.94051.03690.9819
TATA -0.113-0.1307-0.1688-0.1206-0.1165-0.167-0.0964-0.0823-0.0805-0.1227
M-score -3.25-3.40-4.51-2.56-2.93-2.93-2.81-2.67-2.72-2.70

JB Hunt Transport Services Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.10431.09051.04251.0371.04170.91380.9440.97650.99761.0803
GMI 1.01320.99520.98570.97140.98530.95580.93760.92960.90220.9208
AQI 0.9581.05691.0721.14851.06511.7571.80982.00182.04581.1997
SGI 1.10481.10021.10481.10681.1041.08751.05561.02421.00361.0125
DEPI 1.01181.02611.03311.01961.010.9760.96750.96290.94960.9555
SGAI 0.99181.02431.04061.06241.0181.02261.03431.03171.08941.0849
LVGI 0.94051.04821.0171.04871.03690.89290.90691.00190.98191.0427
TATA -0.0823-0.0606-0.0771-0.0928-0.0805-0.1007-0.1123-0.1241-0.1227-0.1336
M-score -2.66-2.59-2.70-2.76-2.72-2.64-2.69-2.70-2.70-3.01
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