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JetBlue Airways Corp (NAS:JBLU)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

JBLU' s 10-Year Beneish M-Score Range
Min: -3.55   Max: -1.03
Current: -2.85

-3.55
-1.03

During the past 13 years, the highest Beneish M-Score of JetBlue Airways Corp was -1.03. The lowest was -3.55. And the median was -2.71.


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 * 1.0681+0.528 * 0.9018+0.404 * 0.9134+0.892 * 1.0911+0.115 * 1.0415
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0047+4.679 * -0.0995-0.327 * 0.8807
=-2.85

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $155 Mil.
Revenue was 1523 + 1446 + 1529 + 1493 = $5,991 Mil.
Gross Profit was 961 + 793 + 786 + 780 = $3,320 Mil.
Total Current Assets was $1,511 Mil.
Total Assets was $8,304 Mil.
Property, Plant and Equipment(Net PPE) was $6,161 Mil.
Depreciation, Depletion and Amortization(DDA) was $330 Mil.
Selling, General & Admin. Expense(SGA) was $2,028 Mil.
Total Current Liabilities was $2,203 Mil.
Long-Term Debt was $1,917 Mil.
Net Income was 137 + 88 + 79 + 230 = $534 Mil.
Non Operating Income was 0 + 0 + 0 + 242 = $242 Mil.
Cash Flow from Operations was 528 + 188 + 183 + 219 = $1,118 Mil.
Accounts Receivable was $133 Mil.
Revenue was 1349 + 1365 + 1442 + 1335 = $5,491 Mil.
Gross Profit was 683 + 696 + 719 + 646 = $2,744 Mil.
Total Current Assets was $1,356 Mil.
Total Assets was $7,645 Mil.
Property, Plant and Equipment(Net PPE) was $5,652 Mil.
Depreciation, Depletion and Amortization(DDA) was $316 Mil.
Selling, General & Admin. Expense(SGA) was $1,850 Mil.
Total Current Liabilities was $1,975 Mil.
Long-Term Debt was $2,332 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)
=(155 / 5991) / (133 / 5491)
=0.02587214 / 0.02422145
=1.0681

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)
=(793 / 5491) / (961 / 5991)
=0.49972683 / 0.55416458
=0.9018

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 - (1511 + 6161) / 8304) / (1 - (1356 + 5652) / 7645)
=0.0761079 / 0.08332243
=0.9134

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
=5991 / 5491
=1.0911

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))
=(316 / (316 + 5652)) / (330 / (330 + 6161))
=0.05294906 / 0.05083962
=1.0415

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)
=(2028 / 5991) / (1850 / 5491)
=0.33850776 / 0.33691495
=1.0047

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)
=((1917 + 2203) / 8304) / ((2332 + 1975) / 7645)
=0.49614644 / 0.56337475
=0.8807

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
=(534 - 242 - 1118) / 8304
=-0.0995

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 -2.85 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.99340.78410.97110.90171.00880.94881.11430.9861
GMI 01.35010.82481.09131.11921.11930.99180.9408
AQI 0.42712.31690.59051.55690.91821.07560.97880.8333
SGI 1.20271.19210.96991.151.19181.10611.09211.0691
DEPI 1.05420.90630.93431.01720.97631.0090.93391.0102
SGAI 2.44041.27951.11280.97810.89910.98050.99091.0288
LVGI 0.95560.95630.95010.95661.00990.95390.94420.9174
TATA -0.0684-0.0096-0.0653-0.0652-0.0742-0.0808-0.0803-0.0959
M-score -3.61-1.88-3.11-2.45-2.61-2.70-2.67-2.96

JetBlue Airways Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.94880.94471.16420.82011.11430.87230.88081.11020.98611.0681
GMI 1.11931.06931.04040.99080.99180.9710.94510.94430.94080.9018
AQI 1.07561.08151.1620.88290.97881.0081.03841.03150.83330.9134
SGI 1.10611.08161.06531.06811.09211.08131.09991.08841.06911.0911
DEPI 1.0090.98730.97810.98080.93390.92970.94030.98131.01021.0415
SGAI 0.98051.00181.00461.00170.99091.01471.01411.02351.02881.0047
LVGI 0.95390.97260.98890.98510.94420.96740.90560.90810.91740.8807
TATA -0.0803-0.0687-0.0698-0.0803-0.0803-0.0938-0.1028-0.1032-0.0961-0.0995
M-score -2.70-2.70-2.51-3.01-2.67-2.98-2.97-2.78-2.96-2.85
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