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JetBlue Airways Corp (NAS:JBLU)
Beneish M-Score
-3.02 (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.

JetBlue Airways Corp has a M-score of -3.02 suggests that the company is not a manipulator.

JBLU' s Beneish M-Score Range Over the Past 10 Years
Min: -3.25   Max: -1.45
Current: -3.02

-3.25
-1.45

During the past 13 years, the highest Beneish M-Score of JetBlue Airways Corp was -1.45. The lowest was -3.25. And the median was -2.74.


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 JetBlue Airways Corp 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 * 0.9066+0.528 * 0.8156+0.404 * 1.0138+0.892 * 1.103+0.115 * 1.0304
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0725+4.679 * -0.1064-0.327 * 0.8509
=-3.02

* 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 $136 Mil.
Revenue was 1594 + 1687 + 1612 + 1523 = $6,416 Mil.
Gross Profit was 1067 + 1092 + 994 + 961 = $4,114 Mil.
Total Current Assets was $1,373 Mil.
Total Assets was $8,660 Mil.
Property, Plant and Equipment(Net PPE) was $6,652 Mil.
Depreciation, Depletion and Amortization(DDA) was $345 Mil.
Selling, General & Admin. Expense(SGA) was $1,804 Mil.
Total Current Liabilities was $2,275 Mil.
Long-Term Debt was $1,395 Mil.
Net Income was 190 + 198 + 152 + 137 = $677 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 304 + 404 + 362 + 528 = $1,598 Mil.
Accounts Receivable was $136 Mil.
Revenue was 1446 + 1529 + 1493 + 1349 = $5,817 Mil.
Gross Profit was 793 + 786 + 780 + 683 = $3,042 Mil.
Total Current Assets was $1,200 Mil.
Total Assets was $7,839 Mil.
Property, Plant and Equipment(Net PPE) was $6,072 Mil.
Depreciation, Depletion and Amortization(DDA) was $325 Mil.
Selling, General & Admin. Expense(SGA) was $1,525 Mil.
Total Current Liabilities was $1,936 Mil.
Long-Term Debt was $1,968 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)
=(136 / 6416) / (136 / 5817)
=0.02119701 / 0.02337975
=0.9066

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)
=(1092 / 5817) / (1067 / 6416)
=0.52294997 / 0.64120948
=0.8156

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 - (1373 + 6652) / 8660) / (1 - (1200 + 6072) / 7839)
=0.07332564 / 0.07233065
=1.0138

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
=6416 / 5817
=1.103

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))
=(325 / (325 + 6072)) / (345 / (345 + 6652))
=0.05080506 / 0.04930685
=1.0304

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)
=(1804 / 6416) / (1525 / 5817)
=0.28117207 / 0.26216263
=1.0725

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)
=((1395 + 2275) / 8660) / ((1968 + 1936) / 7839)
=0.42378753 / 0.49802271
=0.8509

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
=(677 - 0 - 1598) / 8660
=-0.1064

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.

JetBlue Airways Corp has a M-score of -3.02 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.

JetBlue Airways Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.58970.99340.78410.97110.90171.00880.94881.11430.98610.9066
GMI 1.00171.00080.43170.85721.02271.5190.8921.12970.94080.8156
AQI 1.37680.42712.31690.59051.55690.91821.07560.97880.83331.0138
SGI 1.38921.20271.19210.96991.151.19181.10611.09211.06911.103
DEPI 0.88171.05420.90630.93431.01720.97631.0090.93391.01021.0304
SGAI 0.99340.96181.17161.13111.00370.89860.98450.99631.05041.0725
LVGI 1.00640.95560.95630.95010.95661.00990.95390.94420.91740.8509
TATA -0.0624-0.0684-0.0174-0.0653-0.0646-0.0742-0.0808-0.0801-0.0959-0.1064
M-score -2.66-2.83-2.38-3.09-2.49-2.40-2.82-2.60-2.96-3.02

JetBlue Airways Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.11430.87230.88081.11020.98611.06810.85890.94040.90660
GMI 0.99180.9710.94510.94430.94080.90180.88080.83810.81560.8377
AQI 0.97881.0081.03841.03150.83330.91340.90570.88331.013813.1392
SGI 1.09211.08131.09991.08841.06911.09111.08161.09271.1031.0865
DEPI 0.93390.92970.94030.98131.01021.04151.05261.03051.03040.0508
SGAI 0.99631.02261.03261.04341.05041.02441.03381.04951.07251.0903
LVGI 0.94420.96740.90560.90810.91740.88070.90860.89310.85090.3959
TATA -0.0803-0.0938-0.1028-0.1032-0.0961-0.0995-0.0968-0.1055-0.1064-0.0365
M-score -2.67-2.98-2.98-2.78-2.96-2.85-3.06-3.05-3.021.40
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