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Jakks Pacific Inc (NAS:JAKK)
Beneish M-Score
-2.24 (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.

Jakks Pacific Inc has a M-score of -2.24 suggests that the company is not a manipulator.

JAKK' s Beneish M-Score Range Over the Past 10 Years
Min: -7.03   Max: 0.01
Current: -2.24

-7.03
0.01

During the past 13 years, the highest Beneish M-Score of Jakks Pacific Inc was 0.01. The lowest was -7.03. And the median was -2.49.


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 Jakks Pacific Inc 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 * 1.1884+0.528 * 0.9807+0.404 * 1.0275+0.892 * 0.9697+0.115 * 0.9787
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0475+4.679 * 0.0157-0.327 * 0.9051
=-2.24

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $98.5 Mil.
Revenue was 94.505 + 167.026 + 302.791 + 140.977 = $705.3 Mil.
Gross Profit was 30.021 + 52.105 + 94.933 + 44.8 = $221.9 Mil.
Total Current Assets was $267.6 Mil.
Total Assets was $376.3 Mil.
Property, Plant and Equipment(Net PPE) was $22.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.3 Mil.
Selling, General & Admin. Expense(SGA) was $206.7 Mil.
Total Current Liabilities was $69.3 Mil.
Long-Term Debt was $164.6 Mil.
Net Income was -18.316 + -7.585 + 30.612 + -4.369 = $0.3 Mil.
Non Operating Income was 0.023 + 0.051 + 0.207 + 0.861 = $1.1 Mil.
Cash Flow from Operations was 9.931 + 37.385 + -43.104 + -10.934 = $-6.7 Mil.
Accounts Receivable was $85.5 Mil.
Revenue was 95.809 + 163.407 + 337.027 + 131.106 = $727.3 Mil.
Gross Profit was 31.183 + 49.575 + 104.329 + 39.287 = $224.4 Mil.
Total Current Assets was $314.8 Mil.
Total Assets was $430.6 Mil.
Property, Plant and Equipment(Net PPE) was $19.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.6 Mil.
Selling, General & Admin. Expense(SGA) was $203.5 Mil.
Total Current Liabilities was $87.8 Mil.
Long-Term Debt was $207.8 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)
=(98.491 / 705.299) / (85.471 / 727.349)
=0.13964432 / 0.1175103
=1.1884

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)
=(224.374 / 727.349) / (221.859 / 705.299)
=0.3084819 / 0.31456021
=0.9807

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 - (267.566 + 22.617) / 376.341) / (1 - (314.775 + 19.86) / 430.571)
=0.22893599 / 0.2228111
=1.0275

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
=705.299 / 727.349
=0.9697

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))
=(19.584 / (19.584 + 19.86)) / (23.287 / (23.287 + 22.617))
=0.49650137 / 0.50729784
=0.9787

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)
=(206.661 / 705.299) / (203.461 / 727.349)
=0.2930119 / 0.27972954
=1.0475

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)
=((164.554 + 69.33) / 376.341) / ((207.797 + 87.833) / 430.571)
=0.6214683 / 0.68659989
=0.9051

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
=(0.342 - 1.142 - -6.722) / 376.341
=0.0157

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.

Jakks Pacific Inc has a M-score of -2.24 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.

Jakks Pacific Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.01740.80260.98961.01380.9331.03431.01121.81020.75681.1214
GMI 1.021.0621.40820.77031.14520.96421.20610.84550.94980.9711
AQI 0.94411.15290.32370.99711.00251.45151.0930.76860.98250.9592
SGI 1.11981.0540.88960.92980.9070.98380.94931.27990.92060.9475
DEPI 1.09581.12810.78171.00091.02061.01130.88341.09221.24771.0091
SGAI 0.95551.05671.05760.92261.0911.11380.99930.79761.0521.0974
LVGI 0.89330.90121.55650.88421.03271.62131.11651.14330.93131.0225
TATA -0.0202-0.0018-0.7383-0.0416-0.0679-0.2381-0.07630.1678-0.102-0.0359
M-score -2.41-2.49-6.32-2.80-2.89-3.63-2.78-0.88-3.24-2.64

Jakks Pacific Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.81021.20840.82730.79820.75680.94821.30591.1061.12141.1884
GMI 0.84550.83170.99580.90810.94980.95370.94130.98620.97110.9807
AQI 0.76860.82130.94670.96740.98250.94760.93490.96450.95921.0275
SGI 1.27991.32071.29511.20550.92060.86410.86870.84050.94750.9697
DEPI 1.09221.16751.29861.44911.24771.19121.05290.98241.00910.9787
SGAI 0.79760.81260.84440.95011.0521.14541.16151.15571.09741.0475
LVGI 1.14331.09180.91860.94340.93130.98621.02041.01711.02250.9051
TATA 0.16780.11370.0433-0.011-0.102-0.1288-0.0658-0.0695-0.03590.0157
M-score -0.88-1.61-2.11-2.52-3.24-3.30-2.71-2.91-2.64-2.24
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