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JetBlue Airways Corp (NAS:JBLU)
Beneish M-Score
-2.95 (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 -2.95 suggests that the company is not a manipulator.

JBLU' s 10-Year Beneish M-Score Range
Min: -3.44   Max: -1.38
Current: -2.95

-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 * 0.8808+0.528 * 0.9963+0.404 * 1.0384+0.892 * 1.0999+0.115 * 0.9403
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0141+4.679 * -0.1029-0.327 * 0.9056
=-2.95

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $155 Mil.
Revenue was 1493 + 1349 + 1365 + 1442 = $5,649 Mil.
Gross Profit was 780 + 683 + 696 + 719 = $2,878 Mil.
Total Current Assets was $1,265 Mil.
Total Assets was $7,657 Mil.
Property, Plant and Equipment(Net PPE) was $5,778 Mil.
Depreciation, Depletion and Amortization(DDA) was $321 Mil.
Selling, General & Admin. Expense(SGA) was $1,904 Mil.
Total Current Liabilities was $1,934 Mil.
Long-Term Debt was $2,108 Mil.
Net Income was 230 + 4 + 47 + 71 = $352 Mil.
Non Operating Income was 242 + 0 + -2 + 3 = $243 Mil.
Cash Flow from Operations was 219 + 322 + 193 + 163 = $897 Mil.
Accounts Receivable was $160 Mil.
Revenue was 1335 + 1299 + 1194 + 1308 = $5,136 Mil.
Gross Profit was 646 + 616 + 603 + 742 = $2,607 Mil.
Total Current Assets was $1,325 Mil.
Total Assets was $7,368 Mil.
Property, Plant and Equipment(Net PPE) was $5,474 Mil.
Depreciation, Depletion and Amortization(DDA) was $285 Mil.
Selling, General & Admin. Expense(SGA) was $1,707 Mil.
Total Current Liabilities was $2,122 Mil.
Long-Term Debt was $2,173 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 / 5649) / (160 / 5136)
=0.02743848 / 0.03115265
=0.8808

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)
=(683 / 5136) / (780 / 5649)
=0.50759346 / 0.5094707
=0.9963

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 - (1265 + 5778) / 7657) / (1 - (1325 + 5474) / 7368)
=0.08018806 / 0.07722584
=1.0384

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
=5649 / 5136
=1.0999

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))
=(285 / (285 + 5474)) / (321 / (321 + 5778))
=0.04948776 / 0.05263158
=0.9403

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)
=(1904 / 5649) / (1707 / 5136)
=0.33705081 / 0.33235981
=1.0141

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)
=((2108 + 1934) / 7657) / ((2173 + 2122) / 7368)
=0.52788298 / 0.58292617
=0.9056

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
=(352 - 243 - 897) / 7657
=-0.1029

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 -2.95 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.91470.97011.20550.94880.94471.16420.82011.11430.87230.8808
GMI 1.19131.14061.09230.98271.01441.07021.10741.12971.06520.9963
AQI 0.87910.75391.21551.07561.08151.1620.88290.97881.0081.0384
SGI 1.19741.16651.1481.10611.08161.06531.06811.09211.08131.0999
DEPI 0.96010.97650.94681.0090.98730.97810.98080.93390.92970.9403
SGAI 0.89560.92020.94590.98051.00181.00461.00170.99091.01471.0141
LVGI 0.98470.96880.96030.95390.97260.98890.98510.94420.96740.9056
TATA -0.0777-0.077-0.0706-0.0805-0.0688-0.0699-0.0811-0.0804-0.0939-0.1029
M-score -2.68-2.72-2.34-2.77-2.73-2.49-2.95-2.60-2.93-2.95
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