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GuruFocus has detected 2 Warning Signs with JB Hunt Transport Services Inc $JBHT.
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JB Hunt Transport Services Inc (NAS:JBHT)
Beneish M-Score
-3.16 (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.

JB Hunt Transport Services Inc has a M-score of -3.16 suggests that the company is not a manipulator.

JBHT' s Beneish M-Score Range Over the Past 10 Years
Min: -5.41   Max: -0.66
Current: -3.16

-5.41
-0.66

During the past 13 years, the highest Beneish M-Score of JB Hunt Transport Services Inc was -0.66. The lowest was -5.41. And the median was -2.84.


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 JB Hunt Transport Services 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 * 0.9663+0.528 * 1.0474+0.404 * 0.4846+0.892 * 1.0605+0.115 * 0.9825
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.987+4.679 * -0.113-0.327 * 0.9641
=-3.16

* 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 $707 Mil.
Revenue was 1629.158 + 1721.062 + 1690.659 + 1615.026 = $6,656 Mil.
Gross Profit was 645.37 + 1033.674 + 669.52 + 656.836 = $3,005 Mil.
Total Current Assets was $893 Mil.
Total Assets was $3,770 Mil.
Property, Plant and Equipment(Net PPE) was $2,831 Mil.
Depreciation, Depletion and Amortization(DDA) was $365 Mil.
Selling, General & Admin. Expense(SGA) was $1,654 Mil.
Total Current Liabilities was $587 Mil.
Long-Term Debt was $951 Mil.
Net Income was 102.702 + 117.556 + 109.425 + 105.011 = $435 Mil.
Non Operating Income was 0 + 38.694 + -12.97 + 0 = $26 Mil.
Cash Flow from Operations was 285.633 + 170.18 + 209.825 + 169.242 = $835 Mil.
Accounts Receivable was $690 Mil.
Revenue was 1528.712 + 1621.015 + 1586.494 + 1539.957 = $6,276 Mil.
Gross Profit was 640.586 + 1047.842 + 646.564 + 633.343 = $2,968 Mil.
Total Current Assets was $815 Mil.
Total Assets was $3,647 Mil.
Property, Plant and Equipment(Net PPE) was $2,739 Mil.
Depreciation, Depletion and Amortization(DDA) was $347 Mil.
Selling, General & Admin. Expense(SGA) was $1,580 Mil.
Total Current Liabilities was $581 Mil.
Long-Term Debt was $961 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)
=(707.433 / 6655.905) / (690.352 / 6276.178)
=0.10628652 / 0.10999561
=0.9663

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)
=(2968.335 / 6276.178) / (3005.4 / 6655.905)
=0.47295265 / 0.4515389
=1.0474

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 - (893.341 + 2830.628) / 3770.395) / (1 - (814.93 + 2739.366) / 3646.958)
=0.0123133 / 0.02540802
=0.4846

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
=6655.905 / 6276.178
=1.0605

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))
=(346.587 / (346.587 + 2739.366)) / (365.347 / (365.347 + 2830.628))
=0.11231117 / 0.11431472
=0.9825

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)
=(1654.097 / 6655.905) / (1580.349 / 6276.178)
=0.24851572 / 0.25180118
=0.987

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)
=((950.558 + 586.525) / 3770.395) / ((961.346 + 580.714) / 3646.958)
=0.40767161 / 0.42283459
=0.9641

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
=(434.694 - 25.724 - 834.88) / 3770.395
=-0.113

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.

JB Hunt Transport Services Inc has a M-score of -3.16 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.

JB Hunt Transport Services Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.90940.79471.28840.95560.98191.01421.10431.04170.95151.1268
GMI 1.1891.38220.98081.13491.05461.02131.01320.79650.96311.027
AQI 0.94190.73021.7960.93481.19250.84190.9581.06511.89890.87
SGI 1.04871.06940.85841.18421.19331.11671.10481.1041.00361.0594
DEPI 0.9541.03031.10030.98451.06631.01721.01181.010.94960.9825
SGAI 11.76561.17941.09380.92660.91120.93850.99181.081.08751.0016
LVGI 1.72980.79640.8731.0941.02090.87980.94051.03690.97930.9659
TATA -0.1307-0.1688-0.1052-0.1097-0.167-0.0964-0.0823-0.0805-0.1303-0.1169
M-score -5.15-3.26-2.48-2.84-2.98-2.81-2.66-2.83-2.80-2.89

JB Hunt Transport Services Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.04170.91380.9440.97650.95151.08031.09021.10441.12680.9663
GMI 0.79650.77780.77320.77480.96310.97961.00051.02361.0271.0474
AQI 1.06511.7571.80982.00181.89891.19971.34280.92320.870.4846
SGI 1.1041.08751.05561.02421.00361.01251.02591.04521.05941.0605
DEPI 1.010.9760.96750.96290.94960.95550.95620.97170.98250.9825
SGAI 1.081.08361.07681.05881.08751.08281.06431.06191.00160.987
LVGI 1.03690.89290.90691.00190.97931.04271.00270.94790.96590.9641
TATA -0.0805-0.1007-0.1123-0.1196-0.1303-0.1409-0.1308-0.1229-0.1169-0.113
M-score -2.83-2.75-2.79-2.77-2.80-3.02-2.86-2.93-2.89-3.16
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