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JB Hunt Transport Services Inc (NAS:JBHT)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

JBHT' s 10-Year Beneish M-Score Range
Min: -5.39   Max: -1.57
Current: -2.75

-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 * 1.037+0.528 * 0.9922+0.404 * 1.1485+0.892 * 1.1068+0.115 * 1.0196
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0265+4.679 * -0.0928-0.327 * 1.0487
=-2.75

* 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 $671 Mil.
Revenue was 1601.156 + 1547.867 + 1406.908 + 1474.276 = $6,030 Mil.
Gross Profit was 589.679 + 562.519 + 500.593 + 533.945 = $2,187 Mil.
Total Current Assets was $738 Mil.
Total Assets was $3,159 Mil.
Property, Plant and Equipment(Net PPE) was $2,385 Mil.
Depreciation, Depletion and Amortization(DDA) was $282 Mil.
Selling, General & Admin. Expense(SGA) was $1,318 Mil.
Total Current Liabilities was $790 Mil.
Long-Term Debt was $587 Mil.
Net Income was 102.414 + 93.408 + 68.664 + 91.864 = $356 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 185.364 + 141.956 + 159.045 + 163.123 = $649 Mil.
Accounts Receivable was $585 Mil.
Revenue was 1435.85 + 1382.858 + 1291.587 + 1338.136 = $5,448 Mil.
Gross Profit was 514.981 + 504.367 + 460.478 + 480.6 = $1,960 Mil.
Total Current Assets was $648 Mil.
Total Assets was $2,712 Mil.
Property, Plant and Equipment(Net PPE) was $2,037 Mil.
Depreciation, Depletion and Amortization(DDA) was $246 Mil.
Selling, General & Admin. Expense(SGA) was $1,160 Mil.
Total Current Liabilities was $690 Mil.
Long-Term Debt was $437 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)
=(671.298 / 6030.207) / (584.914 / 5448.431)
=0.11132255 / 0.10735458
=1.037

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)
=(562.519 / 5448.431) / (589.679 / 6030.207)
=0.35981478 / 0.36263034
=0.9922

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 - (737.678 + 2385.106) / 3158.918) / (1 - (648.032 + 2037.386) / 2712.434)
=0.01143873 / 0.00996006
=1.1485

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
=6030.207 / 5448.431
=1.1068

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))
=(246.35 / (246.35 + 2037.386)) / (282.185 / (282.185 + 2385.106))
=0.10787149 / 0.10579461
=1.0196

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)
=(1318.213 / 6030.207) / (1160.336 / 5448.431)
=0.21860162 / 0.212967
=1.0265

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)
=((587.074 + 790.292) / 3158.918) / ((437.474 + 690.338) / 2712.434)
=0.43602461 / 0.41579334
=1.0487

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
=(356.35 - 0 - 649.488) / 3158.918
=-0.0928

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 -2.75 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 1.05290.79471.28840.95560.98191.01421.1043
GMI 1.01911.15830.97911.09461.05461.0341.0007
AQI 0.35830.73021.7960.93481.19250.84190.958
SGI 1.14461.06940.85841.18421.19331.11671.1048
DEPI 1.1251.03031.10030.98451.06631.01721.0118
SGAI 0.9230.95761.08640.91970.90480.88631.0063
LVGI 0.66220.79640.8731.0941.02090.87980.9405
TATA -0.1704-0.1708-0.1206-0.1165-0.167-0.0964-0.0823
M-score -3.21-3.35-2.56-2.90-2.98-2.80-2.67

JB Hunt Transport Services Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.9281.04761.01421.07081.10961.04781.10431.09051.04251.037
GMI 1.05581.06291.02131.03231.01030.98481.01320.99520.99730.9922
AQI 1.33910.81780.84191.00880.87410.91190.9581.05691.0721.1485
SGI 1.15411.13361.11671.10411.10651.1071.10481.10021.10481.1068
DEPI 1.02931.02681.01721.02821.01821.0091.01181.02611.03311.0196
SGAI 0.89170.89230.89930.9110.95060.98181.00251.02551.02151.0265
LVGI 0.90350.80480.87980.87860.94640.92710.94051.04821.0171.0487
TATA -0.1265-0.109-0.0964-0.1131-0.097-0.0765-0.0823-0.0606-0.0771-0.0928
M-score -2.78-2.78-2.81-2.77-2.76-2.71-2.67-2.59-2.69-2.75
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