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JB Hunt Transport Services Inc (NAS:JBHT)
Beneish M-Score
-2.69 (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 -2.69 suggests that the company is not a manipulator.

JBHT' s 10-Year Beneish M-Score Range
Min: -6.03   Max: -2.1
Current: -2.69

-6.03
-2.1

During the past 13 years, the highest Beneish M-Score of JB Hunt Transport Services Inc was -2.10. The lowest was -6.03. And the median was -3.01.


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 * 1.0425+0.528 * 0.986+0.404 * 1.0719+0.892 * 1.1048+0.115 * 1.0331
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9982+4.679 * -0.0771-0.327 * 1.017
=-2.69

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $668 Mil.
Revenue was 1547.867 + 1406.908 + 1474.276 + 1435.85 = $5,865 Mil.
Gross Profit was 562.519 + 500.593 + 533.945 + 514.981 = $2,112 Mil.
Total Current Assets was $739 Mil.
Total Assets was $3,091 Mil.
Property, Plant and Equipment(Net PPE) was $2,317 Mil.
Depreciation, Depletion and Amortization(DDA) was $271 Mil.
Selling, General & Admin. Expense(SGA) was $1,276 Mil.
Total Current Liabilities was $515 Mil.
Long-Term Debt was $874 Mil.
Net Income was 93.408 + 68.664 + 91.864 + 89.472 = $343 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 141.956 + 159.045 + 163.123 + 117.657 = $582 Mil.
Accounts Receivable was $580 Mil.
Revenue was 1382.858 + 1291.587 + 1338.136 + 1295.792 = $5,308 Mil.
Gross Profit was 504.367 + 485.58 + 408.133 + 486.768 = $1,885 Mil.
Total Current Assets was $652 Mil.
Total Assets was $2,656 Mil.
Property, Plant and Equipment(Net PPE) was $1,976 Mil.
Depreciation, Depletion and Amortization(DDA) was $240 Mil.
Selling, General & Admin. Expense(SGA) was $1,157 Mil.
Total Current Liabilities was $699 Mil.
Long-Term Debt was $474 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)
=(667.62 / 5864.901) / (579.643 / 5308.373)
=0.11383312 / 0.1091941
=1.0425

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)
=(500.593 / 5308.373) / (562.519 / 5864.901)
=0.35507075 / 0.36011486
=0.986

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 - (739.225 + 2316.545) / 3091.359) / (1 - (651.562 + 1976.226) / 2656.316)
=0.01151241 / 0.01073969
=1.0719

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
=5864.901 / 5308.373
=1.1048

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))
=(239.832 / (239.832 + 1976.226)) / (271.06 / (271.06 + 2316.545))
=0.1082246 / 0.10475324
=1.0331

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)
=(1276.011 / 5864.901) / (1156.967 / 5308.373)
=0.21756736 / 0.21795134
=0.9982

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)
=((874.028 + 514.634) / 3091.359) / ((474.132 + 699.106) / 2656.316)
=0.44920761 / 0.44167863
=1.017

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
=(343.408 - 0 - 581.781) / 3091.359
=-0.0771

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 -2.69 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 1.05260.99160.94740.90940.79471.28840.95560.98191.01421.1043
GMI 1.01891.0611.02211.03151.05581.01691.03021.06331.08971.0007
AQI 0.37611.19020.66360.94190.73021.7960.93481.19250.84190.958
SGI 1.14491.12271.0641.04871.06940.85841.18421.19331.11671.1048
DEPI 1.1250.96291.07040.9541.03031.10030.98451.06631.01721.0118
SGAI 0.96681.0640.67991.383417.84941.15810.93650.90360.91570.9578
LVGI 0.65391.25011.4461.72980.79640.8731.0941.02090.87980.9405
TATA -0.1642-0.0774-0.113-0.1307-0.1688-0.1206-0.1165-0.167-0.0964-0.0823
M-score -3.18-2.73-3.21-3.45-6.30-2.55-2.93-2.98-2.77-2.66

JB Hunt Transport Services Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.93530.9281.04761.01421.07081.10961.04781.10431.09051.0425
GMI 1.06191.04831.03971.08971.0851.08951.09070.98840.99650.986
AQI 1.17221.33910.81780.84191.00880.87410.91190.9581.05691.072
SGI 1.1881.15411.13361.11671.10411.10651.1071.10481.10021.1048
DEPI 1.0391.02931.02681.01721.02821.01821.0091.01181.02611.0331
SGAI 0.90130.9050.92090.91570.93130.9420.94180.97210.98680.9982
LVGI 0.93670.90350.80480.87980.87860.94640.92710.94051.04821.017
TATA -0.1539-0.1265-0.109-0.0964-0.1131-0.097-0.0765-0.0823-0.0606-0.0771
M-score -2.95-2.79-2.80-2.77-2.75-2.71-2.65-2.67-2.58-2.69
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