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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 Beneish M-Score Range Over the Past 10 Years
Min: -5.41   Max: -1.89
Current: -2.69

-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 -2.87.


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 * 0.9976+0.528 * 0.9065+0.404 * 2.057+0.892 * 1.0036+0.115 * 0.9496
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0808+4.679 * -0.1227-0.327 * 0.9874
=-2.69

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $655 Mil.
Revenue was 1621.015 + 1586.494 + 1539.957 + 1440.18 = $6,188 Mil.
Gross Profit was 605.405 + 666.642 + 656.763 + 581.041 = $2,510 Mil.
Total Current Assets was $859 Mil.
Total Assets was $3,637 Mil.
Property, Plant and Equipment(Net PPE) was $2,701 Mil.
Depreciation, Depletion and Amortization(DDA) was $340 Mil.
Selling, General & Admin. Expense(SGA) was $1,455 Mil.
Total Current Liabilities was $532 Mil.
Long-Term Debt was $1,005 Mil.
Net Income was 116.745 + 115.139 + 103.419 + 91.932 = $427 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 176.348 + 243.423 + 197.994 + 255.543 = $873 Mil.
Accounts Receivable was $654 Mil.
Revenue was 1609.511 + 1601.156 + 1547.867 + 1406.908 = $6,165 Mil.
Gross Profit was 614.25 + 589.679 + 562.519 + 500.593 = $2,267 Mil.
Total Current Assets was $880 Mil.
Total Assets was $3,397 Mil.
Property, Plant and Equipment(Net PPE) was $2,483 Mil.
Depreciation, Depletion and Amortization(DDA) was $294 Mil.
Selling, General & Admin. Expense(SGA) was $1,341 Mil.
Total Current Liabilities was $771 Mil.
Long-Term Debt was $684 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)
=(654.542 / 6187.646) / (653.795 / 6165.442)
=0.10578207 / 0.10604187
=0.9976

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)
=(666.642 / 6165.442) / (605.405 / 6187.646)
=0.36770129 / 0.40562291
=0.9065

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 - (859.367 + 2701.329) / 3636.567) / (1 - (880.13 + 2482.532) / 3397.117)
=0.02086336 / 0.01014242
=2.057

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
=6187.646 / 6165.442
=1.0036

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))
=(294.496 / (294.496 + 2482.532)) / (339.613 / (339.613 + 2701.329))
=0.10604718 / 0.1116802
=0.9496

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)
=(1454.543 / 6187.646) / (1341.003 / 6165.442)
=0.23507211 / 0.21750314
=1.0808

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)
=((1005.026 + 532.417) / 3636.567) / ((683.539 + 771.07) / 3397.117)
=0.42277318 / 0.42818926
=0.9874

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
=(427.235 - 0 - 873.308) / 3636.567
=-0.1227

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.94740.90940.79471.28840.95560.98191.01421.10431.04170.9975
GMI 1.03151.02951.01020.98081.03661.15471.0341.00070.98070.9021
AQI 0.66360.94190.73021.7960.93481.19250.84190.9581.05922.057
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 0.97341.07247.3011.09380.94440.89410.9251.00631.02621.0899
LVGI 1.4461.72980.79640.8731.0941.02090.87980.94051.03120.9874
TATA -0.113-0.1307-0.1688-0.1206-0.1165-0.167-0.0964-0.0823-0.0801-0.1227
M-score -3.25-3.40-4.51-2.56-2.93-2.93-2.81-2.67-2.72-2.70

JB Hunt Transport Services Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.10431.09051.04251.0371.04170.91380.9440.97650.99761.0803
GMI 0.98841.00871.01051.00490.99290.95150.9130.88920.90651.077
AQI 0.9581.05691.0721.14851.05921.7571.80982.00182.0571.2666
SGI 1.10481.10021.10481.10681.1041.08751.05561.02421.00361.0125
DEPI 1.01181.02611.03311.01961.010.9760.96750.96290.94960.9555
SGAI 1.02121.0081.00451.00991.01111.03071.08171.11211.08080.8154
LVGI 0.94051.04821.0171.04871.03120.89290.90691.00190.98741.0452
TATA -0.0823-0.0606-0.0771-0.0928-0.0801-0.1007-0.1123-0.1241-0.1227-0.0499
M-score -2.68-2.58-2.68-2.74-2.71-2.65-2.71-2.74-2.69-2.47
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