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JB Hunt Transport Services Inc (NAS:JBHT)
Beneish M-Score
-2.97 (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 -2.97 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: -2.97

-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 -2.88.


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 * 1.1044+0.528 * 0.9615+0.404 * 0.9232+0.892 * 1.0452+0.115 * 0.9717
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0731+4.679 * -0.1229-0.327 * 0.9479
=-2.97

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $775 Mil.
Revenue was 1690.659 + 1615.026 + 1528.712 + 1621.015 = $6,455 Mil.
Gross Profit was 669.52 + 656.836 + 640.586 + 661.119 = $2,628 Mil.
Total Current Assets was $842 Mil.
Total Assets was $3,730 Mil.
Property, Plant and Equipment(Net PPE) was $2,809 Mil.
Depreciation, Depletion and Amortization(DDA) was $358 Mil.
Selling, General & Admin. Expense(SGA) was $1,550 Mil.
Total Current Liabilities was $601 Mil.
Long-Term Debt was $944 Mil.
Net Income was 109.425 + 105.011 + 100.098 + 116.745 = $431 Mil.
Non Operating Income was -12.97 + 0 + 0 + 42.404 = $29 Mil.
Cash Flow from Operations was 209.825 + 169.242 + 304.896 + 176.348 = $860 Mil.
Accounts Receivable was $671 Mil.
Revenue was 1586.494 + 1539.957 + 1440.18 + 1609.511 = $6,176 Mil.
Gross Profit was 646.564 + 633.343 + 581.041 + 556.628 = $2,418 Mil.
Total Current Assets was $768 Mil.
Total Assets was $3,519 Mil.
Property, Plant and Equipment(Net PPE) was $2,671 Mil.
Depreciation, Depletion and Amortization(DDA) was $330 Mil.
Selling, General & Admin. Expense(SGA) was $1,382 Mil.
Total Current Liabilities was $544 Mil.
Long-Term Debt was $993 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)
=(775.02 / 6455.412) / (671.398 / 6176.142)
=0.1200574 / 0.10870832
=1.1044

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)
=(2417.576 / 6176.142) / (2628.061 / 6455.412)
=0.39143789 / 0.40710972
=0.9615

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 - (842.401 + 2808.741) / 3729.994) / (1 - (768.171 + 2670.509) / 3519.264)
=0.02113998 / 0.02289797
=0.9232

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
=6455.412 / 6176.142
=1.0452

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))
=(329.626 / (329.626 + 2670.509)) / (358.091 / (358.091 + 2808.741))
=0.10987039 / 0.11307546
=0.9717

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)
=(1550.418 / 6455.412) / (1382.243 / 6176.142)
=0.24017336 / 0.22380363
=1.0731

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)
=((943.696 + 600.845) / 3729.994) / ((993.353 + 544.048) / 3519.264)
=0.41408673 / 0.43685299
=0.9479

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
=(431.279 - 29.434 - 860.311) / 3729.994
=-0.1229

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 -2.97 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 local exchange's currency.

JB Hunt Transport Services Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.94740.90940.79471.28840.95560.98191.01421.10431.04170.9975
GMI 1.03150.93261.11520.98081.13491.05461.0341.00070.98070.9021
AQI 0.66360.94190.73021.7960.93481.19250.84190.9581.06511.8989
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 0.97348.71560.89831.09380.92660.91120.9251.00631.02621.0899
LVGI 1.4461.72980.79640.8731.0941.02090.87980.94051.03690.9793
TATA -0.113-0.1307-0.1688-0.1206-0.1165-0.167-0.0964-0.0823-0.0805-0.1229
M-score -3.25-4.76-3.36-2.56-2.88-2.98-2.81-2.67-2.72-2.76

JB Hunt Transport Services Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.04251.0371.04170.91380.9440.97650.99761.08031.09021.1044
GMI 0.98570.97140.98530.95580.94680.94630.89790.91650.93830.9615
AQI 1.0721.14851.06511.7571.80982.00181.89891.19971.34280.9232
SGI 1.10481.10681.1041.08751.05561.02421.00361.01251.02591.0452
DEPI 1.03311.01961.010.9760.96750.96290.94960.95550.95620.9717
SGAI 1.04061.06241.0181.02261.01711.00021.09861.09381.07481.0731
LVGI 1.0171.04871.03690.89290.90691.00190.97931.04271.00270.9479
TATA -0.0771-0.0928-0.0805-0.1007-0.1123-0.1196-0.1303-0.1409-0.1308-0.1229
M-score -2.70-2.76-2.72-2.64-2.68-2.67-2.80-3.05-2.90-2.97
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