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JB Hunt Transport Services Inc (NAS:JBHT)
Beneish M-Score
-2.76 (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 -2.76 suggests that the company is not a manipulator.

JBHT' s 10-Year Beneish M-Score Range
Min: -6.03   Max: -2.09
Current: -2.76

-6.03
-2.09

During the past 13 years, the highest Beneish M-Score of JB Hunt Transport Services Inc was -2.09. 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 * 1.037+0.528 * 0.9683+0.404 * 1.1485+0.892 * 1.1068+0.115 * 1.0196
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0193+4.679 * -0.0928-0.327 * 1.0487
=-2.76

* 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 + 485.58 + 408.133 = $1,913 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 $1,168 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)
=0.35112145 / 0.36263034
=0.9683

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) / (1168.436 / 5448.431)
=0.21860162 / 0.21445367
=1.0193

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 -2.76 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 0.98641.05820.94740.90940.79471.28840.95560.98191.01421.1043
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 -3.24-2.67-3.21-3.45-6.30-2.55-2.93-2.98-2.77-2.66

JB Hunt Transport Services Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.9281.04761.01421.07081.10961.04781.10431.09051.04251.037
GMI 1.04831.03971.08971.0851.08951.09070.98840.99650.9860.9683
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 0.9050.92090.91570.93130.9420.94180.97210.98680.99821.0193
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 -2.79-2.80-2.77-2.75-2.71-2.65-2.67-2.58-2.69-2.76
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