Johnson & Johnson (MEX:JNJ) Beneish M-Score : -2.62 (As of Mar. 13, 2025)

View and export this data going back to 1990. Start your Free Trial

What is Johnson & Johnson Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Johnson & Johnson's Beneish M-Score or its related term are showing as below:

MEX:JNJ' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78 Med: -2.59 Max: -1.76
Current: -2.62

During the past 13 years, the highest Beneish M-Score of Johnson & Johnson was -1.76. The lowest was -2.78. And the median was -2.59.

Johnson & Johnson Beneish M-Score Historical Data

The historical data trend for Johnson & Johnson's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Johnson & Johnson Beneish M-Score Chart

Johnson & Johnson Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

Get a 7-Day Free Trial

-2.71

-2.16

-2.58

-1.76

-2.62

Johnson & Johnson Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-1.76	-2.01	-2.07	-2.52	-2.62

Competitive Comparison of Johnson & Johnson's Beneish M-Score

For the Drug Manufacturers - General subindustry, Johnson & Johnson's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Johnson & Johnson's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Johnson & Johnson's Beneish M-Score falls into.

Johnson & Johnson Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Johnson & Johnson for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0583

0.528 * 0.9968

0.404 * 1.0245

0.892 * 1.1335

0.115 * 1.1368

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0577

4.679 * -0.025383

0.327 * 1.0439

-2.43

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN394,736 Mil.
Revenue was 469670.364 + 442460.732 + 411231.352 + 354877.721 = MXN1,678,240 Mil.
Gross Profit was 321010.934 + 305357.173 + 285390.565 + 246819.504 = MXN1,158,578 Mil.
Total Current Assets was MXN1,165,688 Mil.
Total Assets was MXN3,756,195 Mil.
Property, Plant and Equipment(Net PPE) was MXN427,917 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN138,659 Mil.
Selling, General, & Admin. Expense(SGA) was MXN418,676 Mil.
Total Current Liabilities was MXN1,049,480 Mil.
Long-Term Debt & Capital Lease Obligation was MXN639,248 Mil.
Net Income was 71555.907 + 53045.668 + 85848.003 + 54020.81 = MXN264,470 Mil.
Non Operating Income was -1230.486 + -40187.902 + -19804.031 + -45872.049 = MXN-107,094 Mil.
Cash Flow from Operations was 145635.353 + 157384.568 + 103197.14 + 60692.505 = MXN466,910 Mil.

Total Receivables was MXN329,080 Mil.
Revenue was 363164.036 + 371910.87 + 368919.584 + 376614.35 = MXN1,480,609 Mil.
Gross Profit was 247773.098 + 256841.636 + 258135.702 + 256081.175 = MXN1,018,832 Mil.
Total Current Assets was MXN908,037 Mil.
Total Assets was MXN2,844,171 Mil.
Property, Plant and Equipment(Net PPE) was MXN337,754 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN130,186 Mil.
Selling, General, & Admin. Expense(SGA) was MXN349,236 Mil.
Total Current Liabilities was MXN785,602 Mil.
Long-Term Debt & Capital Lease Obligation was MXN439,311 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(394735.834 / 1678240.169)	/	(329079.746 / 1480608.84)
	=	0.235208	/	0.22226
	=	1.0583

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)
	=	(1018831.611 / 1480608.84)	/	(1158578.176 / 1678240.169)
	=	0.688117	/	0.690353
	=	0.9968

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1165687.639 + 427917.252) / 3756194.99)	/	(1 - (908037.396 + 337753.587) / 2844171.045)
	=	0.57574	/	0.561985
	=	1.0245

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	1678240.169	/	1480608.84
	=	1.1335

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(130186.005 / (130186.005 + 337753.587))	/	(138659.328 / (138659.328 + 427917.252))
	=	0.278211	/	0.244732
	=	1.1368

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(418675.842 / 1678240.169)	/	(349236.055 / 1480608.84)
	=	0.249473	/	0.235873
	=	1.0577

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((639248.06 + 1049479.679) / 3756194.99)	/	((439310.512 + 785602.145) / 2844171.045)
	=	0.449585	/	0.430675
	=	1.0439

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
	=	(264470.388 - -107094.468	-	466909.566)	/	3756194.99
	=	-0.025383

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Johnson & Johnson has a M-score of -2.43 suggests that the company is unlikely to be a manipulator.

Johnson & Johnson Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Johnson & Johnson's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Johnson & Johnson Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Johnson & Johnson (MEX:JNJ) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

JNJ:USA JNJ:Peru JNJ_KZ:Kazakhstan 1JNJ:Italy JNJd:UK 0R34:UK JNJ:Germany JNJ:Canada JNJB34:Brazil JNJ:Bulgaria JNJ:Austria JNJ:Argentina

Address

One Johnson and Johnson Plaza, New Brunswick, NJ, USA, 08933

Website

https://www.jnj.com

Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: pharmaceutical and medical devices. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. Geographically, just over half of total revenue is generated in the United States.