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JB Hunt Transport Services Inc (NAS:JBHT)
Beneish M-Score
-2.70 (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 -2.70 suggests that the company is not a manipulator.

JBHT' s Beneish M-Score Range Over the Past 10 Years
Min: -5.04   Max: -1.48
Current: -2.7

-5.04
-1.48

During the past 13 years, the highest Beneish M-Score of JB Hunt Transport Services Inc was -1.48. The lowest was -5.04. And the median was -2.85.


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 * 0.9765+0.528 * 0.9296+0.404 * 2.0018+0.892 * 1.0242+0.115 * 0.9629
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0317+4.679 * -0.1241-0.327 * 1.0019
=-2.70

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $671 Mil.
Revenue was 1586.494 + 1539.957 + 1440.18 + 1609.511 = $6,176 Mil.
Gross Profit was 666.642 + 656.763 + 581.041 + 556.628 = $2,461 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 $1,426 Mil.
Total Current Liabilities was $544 Mil.
Long-Term Debt was $993 Mil.
Net Income was 115.139 + 103.419 + 91.932 + 110.306 = $421 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 243.423 + 197.994 + 255.543 + 160.414 = $857 Mil.
Accounts Receivable was $671 Mil.
Revenue was 1601.156 + 1547.867 + 1406.908 + 1474.276 = $6,030 Mil.
Gross Profit was 611.583 + 587.56 + 500.593 + 533.945 = $2,234 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 $1,349 Mil.
Total Current Liabilities was $790 Mil.
Long-Term Debt was $587 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)
=(671.398 / 6176.142) / (671.298 / 6030.207)
=0.10870832 / 0.11132255
=0.9765

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)
=(656.763 / 6030.207) / (666.642 / 6176.142)
=0.37041531 / 0.3984808
=0.9296

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 - (768.171 + 2670.509) / 3519.264) / (1 - (737.678 + 2385.106) / 3158.918)
=0.02289797 / 0.01143873
=2.0018

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
=6176.142 / 6030.207
=1.0242

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))
=(282.185 / (282.185 + 2385.106)) / (329.626 / (329.626 + 2670.509))
=0.10579461 / 0.10987039
=0.9629

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)
=(1425.741 / 6176.142) / (1349.326 / 6030.207)
=0.23084654 / 0.22376114
=1.0317

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)
=((993.353 + 544.048) / 3519.264) / ((587.074 + 790.292) / 3158.918)
=0.43685299 / 0.43602461
=1.0019

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
=(420.796 - 0 - 857.374) / 3519.264
=-0.1241

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 -2.70 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 1.03150.93261.11520.98081.13491.05461.0341.00070.98070.8765
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 0.97348.71560.89831.09380.92660.91120.9251.00631.02621.1446
LVGI 1.4461.72980.79640.8731.0941.02090.87980.94051.03120.9874
TATA -0.1044-0.1307-0.1708-0.1206-0.1165-0.167-0.0964-0.0823-0.08010.1175
M-score -3.21-4.76-3.37-2.56-2.88-2.98-2.81-2.67-2.72-1.59

JB Hunt Transport Services Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.04781.10431.09051.04251.0371.04170.91380.9440.97650.9976
GMI 1.02261.01320.99520.98570.97140.98530.95580.93760.92960.8765
AQI 0.91190.9581.05691.0721.14851.05921.7571.80982.00182.057
SGI 1.1071.10481.10021.10481.10681.1041.08751.05561.02421.0036
DEPI 1.0091.01181.02611.03311.01961.010.9760.96750.96290.9496
SGAI 0.93070.99181.02431.04061.06241.0181.02261.03431.03171.1446
LVGI 0.92710.94051.04821.0171.04871.03120.89290.90691.00190.9874
TATA -0.0765-0.0823-0.0606-0.0771-0.0928-0.0801-0.1007-0.1123-0.1241-0.0742
M-score -2.69-2.66-2.59-2.70-2.76-2.72-2.64-2.69-2.70-2.49
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