Switch to:
JB Hunt Transport Services Inc (NAS:JBHT)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

JBHT' s 10-Year Beneish M-Score Range
Min: -5.39   Max: -1.57
Current: -2.59

-5.39
-1.57

During the past 13 years, the highest Beneish M-Score of JB Hunt Transport Services Inc was -1.57. The lowest was -5.39. And the median was -2.90.


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 * 1.0905+0.528 * 0.9952+0.404 * 1.0569+0.892 * 1.1002+0.115 * 1.0261
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0255+4.679 * -0.0606-0.327 * 1.0482
=-2.59

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $635 Mil.
Revenue was 1406.908 + 1474.276 + 1435.85 + 1382.858 = $5,700 Mil.
Gross Profit was 500.593 + 533.945 + 514.981 + 504.367 = $2,054 Mil.
Total Current Assets was $842 Mil.
Total Assets was $3,116 Mil.
Property, Plant and Equipment(Net PPE) was $2,236 Mil.
Depreciation, Depletion and Amortization(DDA) was $262 Mil.
Selling, General & Admin. Expense(SGA) was $1,239 Mil.
Total Current Liabilities was $663 Mil.
Long-Term Debt was $752 Mil.
Net Income was 68.664 + 91.864 + 89.472 + 87.697 = $338 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 159.045 + 163.123 + 117.657 + 86.812 = $527 Mil.
Accounts Receivable was $529 Mil.
Revenue was 1291.587 + 1338.136 + 1295.792 + 1255.13 = $5,181 Mil.
Gross Profit was 460.478 + 480.6 + 461.105 + 455.662 = $1,858 Mil.
Total Current Assets was $615 Mil.
Total Assets was $2,586 Mil.
Property, Plant and Equipment(Net PPE) was $1,941 Mil.
Depreciation, Depletion and Amortization(DDA) was $234 Mil.
Selling, General & Admin. Expense(SGA) was $1,098 Mil.
Total Current Liabilities was $727 Mil.
Long-Term Debt was $393 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)
=(635.111 / 5699.892) / (529.333 / 5180.645)
=0.11142509 / 0.10217512
=1.0905

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)
=(533.945 / 5180.645) / (500.593 / 5699.892)
=0.35861268 / 0.3603377
=0.9952

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 - (842.068 + 2236.101) / 3115.725) / (1 - (615.198 + 1941.426) / 2586.119)
=0.0120537 / 0.01140512
=1.0569

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
=5699.892 / 5180.645
=1.1002

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))
=(233.776 / (233.776 + 1941.426)) / (261.617 / (261.617 + 2236.101))
=0.10747324 / 0.10474241
=1.0261

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)
=(1239.125 / 5699.892) / (1098.198 / 5180.645)
=0.21739447 / 0.21198094
=1.0255

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)
=((752.207 + 662.804) / 3115.725) / ((393.289 + 727.221) / 2586.119)
=0.45415144 / 0.43327859
=1.0482

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
=(337.697 - 0 - 526.637) / 3115.725
=-0.0606

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 -2.59 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.05291.28840.95560.98191.01421.1043
GMI 1.01911.40141.09461.05461.0341.0007
AQI 0.35831.7960.93481.19250.84190.958
SGI 1.14460.85841.18421.19331.11671.1048
DEPI 1.12500.98451.06631.01721.0118
SGAI 0.92354.90920.91970.90480.88631.0063
LVGI 0.66220.8731.0941.02090.87980.9405
TATA -0.1704-0.1206-0.1165-0.167-0.0964-0.0823
M-score -3.21-11.72-2.90-2.98-2.80-2.67

JB Hunt Transport Services Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.98190.93530.9281.04761.01421.07081.10961.04781.10431.0905
GMI 1.05461.05371.05581.06291.02131.03231.01030.98481.01320.9952
AQI 1.19251.17221.33910.81780.84191.00880.87410.91190.9581.0569
SGI 1.19331.1881.15411.13361.11671.10411.10651.1071.10481.1002
DEPI 1.06631.0391.02931.02681.01721.02821.01821.0091.01181.0261
SGAI 0.90480.90230.89170.89230.89930.9110.95060.98181.00251.0255
LVGI 1.02090.93670.90350.80480.87980.87860.94640.92710.94051.0482
TATA -0.167-0.1596-0.1265-0.109-0.0964-0.1131-0.097-0.0765-0.0823-0.0606
M-score -2.98-2.98-2.78-2.78-2.81-2.77-2.76-2.71-2.67-2.59
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
Email Hide