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JetBlue Airways Corp (NAS:JBLU)
Beneish M-Score
-2.98 (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 -2.97 suggests that the company is not a manipulator.

JBLU' s Beneish M-Score Range Over the Past 10 Years
Min: -3.32   Max: -1.35
Current: -2.98

-3.32
-1.35

During the past 13 years, the highest Beneish M-Score of JetBlue Airways Corp was -1.35. The lowest was -3.32. 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 * 0.9263+0.528 * 0.8987+0.404 * 0.9119+0.892 * 1.0506+0.115 * 0.9662
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.071+4.679 * -0.089-0.327 * 0.8488
=-2.97

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $145 Mil.
Revenue was 1732 + 1643 + 1616 + 1594 = $6,585 Mil.
Gross Profit was 1160 + 1109 + 1153 + 1067 = $4,489 Mil.
Total Current Assets was $2,008 Mil.
Total Assets was $9,579 Mil.
Property, Plant and Equipment(Net PPE) was $6,953 Mil.
Depreciation, Depletion and Amortization(DDA) was $382 Mil.
Selling, General & Admin. Expense(SGA) was $1,933 Mil.
Total Current Liabilities was $2,505 Mil.
Long-Term Debt was $1,250 Mil.
Net Income was 199 + 180 + 199 + 190 = $768 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 310 + 422 + 585 + 304 = $1,621 Mil.
Accounts Receivable was $149 Mil.
Revenue was 1687 + 1612 + 1523 + 1446 = $6,268 Mil.
Gross Profit was 1092 + 994 + 961 + 793 = $3,840 Mil.
Total Current Assets was $1,626 Mil.
Total Assets was $8,594 Mil.
Property, Plant and Equipment(Net PPE) was $6,360 Mil.
Depreciation, Depletion and Amortization(DDA) was $337 Mil.
Selling, General & Admin. Expense(SGA) was $1,718 Mil.
Total Current Liabilities was $2,225 Mil.
Long-Term Debt was $1,744 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 / 6585) / (149 / 6268)
=0.02201974 / 0.02377154
=0.9263

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)
=(3840 / 6268) / (4489 / 6585)
=0.61263561 / 0.68170084
=0.8987

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 - (2008 + 6953) / 9579) / (1 - (1626 + 6360) / 8594)
=0.06451613 / 0.07074703
=0.9119

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
=6585 / 6268
=1.0506

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))
=(337 / (337 + 6360)) / (382 / (382 + 6953))
=0.05032104 / 0.05207907
=0.9662

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)
=(1933 / 6585) / (1718 / 6268)
=0.29354594 / 0.27409062
=1.071

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)
=((1250 + 2505) / 9579) / ((1744 + 2225) / 8594)
=0.39200334 / 0.46183384
=0.8488

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
=(768 - 0 - 1621) / 9579
=-0.089

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 -2.97 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 local exchange's currency.

JetBlue Airways Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.58970.99340.78410.97110.90171.00880.94881.11430.98610.9066
GMI 1.00170.3841.14810.841.26011.23291.0160.99180.94080.8156
AQI 1.37680.42712.31690.59051.55690.91821.07560.97880.83330.99
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 0.97722.44040.92171.13111.00370.89860.98450.99631.05041.0725
LVGI 1.00640.95560.95630.95010.95661.00990.95390.94420.91740.8488
TATA -0.0624-0.0684-0.0096-0.0653-0.0652-0.0742-0.0806-0.0803-0.0959-0.1065
M-score -2.66-3.41-1.92-3.10-2.36-2.55-2.75-2.67-2.96-3.03

JetBlue Airways Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.88081.11020.98611.06810.85890.94040.90660.8610.99260.9263
GMI 0.94510.94430.94080.90180.88080.83810.81560.83770.85560.8987
AQI 1.03841.03150.83330.91340.90570.88330.990.82070.85750.9119
SGI 1.09991.08841.06911.09111.08161.09271.1031.08651.07041.0506
DEPI 0.94030.98131.01021.04151.05261.03051.03041.030.98030.9662
SGAI 1.03261.04341.05041.02441.03381.04951.07251.09031.09011.071
LVGI 0.90560.90810.91740.88070.90860.89310.84880.84650.86260.8488
TATA -0.1028-0.1032-0.0961-0.0995-0.0968-0.1055-0.1065-0.1011-0.1002-0.089
M-score -2.98-2.78-2.96-2.85-3.06-3.05-3.03-3.12-3.00-2.97
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