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JetBlue Airways Corp (NAS:JBLU)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

JBLU' s 10-Year Beneish M-Score Range
Min: -3.44   Max: -1.38
Current: -2.77

-3.44
-1.38

During the past 13 years, the highest Beneish M-Score of JetBlue Airways Corp was -1.38. The lowest was -3.44. And the median was -2.60.


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 * 1.1102+0.528 * 0.955+0.404 * 1.0315+0.892 * 1.0884+0.115 * 0.9813
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0235+4.679 * -0.1031-0.327 * 0.9081
=-2.77

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $145 Mil.
Revenue was 1529 + 1493 + 1349 + 1365 = $5,736 Mil.
Gross Profit was 786 + 780 + 683 + 696 = $2,945 Mil.
Total Current Assets was $1,215 Mil.
Total Assets was $7,741 Mil.
Property, Plant and Equipment(Net PPE) was $5,906 Mil.
Depreciation, Depletion and Amortization(DDA) was $323 Mil.
Selling, General & Admin. Expense(SGA) was $1,944 Mil.
Total Current Liabilities was $1,915 Mil.
Long-Term Debt was $2,088 Mil.
Net Income was 79 + 230 + 4 + 47 = $360 Mil.
Non Operating Income was 0 + 242 + 0 + -1 = $241 Mil.
Cash Flow from Operations was 183 + 219 + 322 + 193 = $917 Mil.
Accounts Receivable was $120 Mil.
Revenue was 1442 + 1335 + 1299 + 1194 = $5,270 Mil.
Gross Profit was 719 + 646 + 616 + 603 = $2,584 Mil.
Total Current Assets was $1,382 Mil.
Total Assets was $7,444 Mil.
Property, Plant and Equipment(Net PPE) was $5,484 Mil.
Depreciation, Depletion and Amortization(DDA) was $294 Mil.
Selling, General & Admin. Expense(SGA) was $1,745 Mil.
Total Current Liabilities was $2,033 Mil.
Long-Term Debt was $2,206 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)
=(145 / 5736) / (120 / 5270)
=0.02527894 / 0.0227704
=1.1102

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)
=(780 / 5270) / (786 / 5736)
=0.49032258 / 0.51342399
=0.955

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 - (1215 + 5906) / 7741) / (1 - (1382 + 5484) / 7444)
=0.08009301 / 0.07764643
=1.0315

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
=5736 / 5270
=1.0884

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 / (294 + 5484)) / (323 / (323 + 5906))
=0.05088266 / 0.05185423
=0.9813

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)
=(1944 / 5736) / (1745 / 5270)
=0.33891213 / 0.33111954
=1.0235

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)
=((2088 + 1915) / 7741) / ((2206 + 2033) / 7444)
=0.51711665 / 0.56945191
=0.9081

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
=(360 - 241 - 917) / 7741
=-0.1031

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 -2.77 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.80471.8280.58970.99340.78410.97110.90171.00880.94881.1143
GMI 1.16131.17930.99841.00950.59370.98981.01161.20740.98271.1297
AQI 0.95371.37691.37681.24520.79840.58781.55690.91821.07560.9788
SGI 1.26811.34361.38921.20271.19210.96991.151.19181.10611.0921
DEPI 0.9890.92450.88170.94651.00940.93431.01720.97631.0090.9339
SGAI 0.99560.93040.97720.95522.35491.54470.97810.89910.98050.9909
LVGI 1.06411.06181.00640.95560.95850.9480.95661.00990.95390.9442
TATA -0.0571-0.0529-0.0624-0.0684-0.0178-0.0653-0.0646-0.0742-0.0808-0.0801
M-score -1.72-1.43-2.66-2.51-3.10-3.10-2.49-2.56-2.77-2.60

JetBlue Airways Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.97011.20550.94880.94471.16420.82011.11430.87230.88081.1102
GMI 1.14061.09230.98271.01441.07021.10741.12971.06520.99630.955
AQI 0.75391.21551.07561.08151.1620.88290.97881.0081.03841.0315
SGI 1.16651.1481.10611.08161.06531.06811.09211.08131.09991.0884
DEPI 0.97650.94681.0090.98730.97810.98080.93390.92970.94030.9813
SGAI 0.92020.94590.98051.00181.00461.00170.99091.01471.01411.0235
LVGI 0.96880.96030.95390.97260.98890.98510.94420.96740.90560.9081
TATA -0.077-0.0706-0.0805-0.0688-0.0699-0.0807-0.0801-0.0937-0.1027-0.1031
M-score -2.72-2.34-2.77-2.73-2.49-2.95-2.60-2.93-2.95-2.77
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