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Johnson & Johnson Beneish M-Score

: -2.63 (As of Today)
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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 -2.63 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:

NYSE:JNJ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.57   Med: -2.58   Max: -2.23
Current: -2.63

-3.57
-2.23

During the past 13 years, the highest Beneish M-Score of Johnson & Johnson was -2.23. The lowest was -3.57. And the median was -2.58.


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 Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.49 -2.78 -2.59 -2.58 -2.70

Johnson & Johnson Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.54 -2.63 -2.70 -2.67 -2.63

Competitive Comparison

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 Beneish M-Score Distribution

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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9165+0.528 * 0.9801+0.404 * 0.9842+0.892 * 1.1079+0.115 * 0.994
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9771+4.679 * -0.0323-0.327 * 1.0021
=-2.63

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $14,871 Mil.
Revenue was 23312 + 22321 + 22475 + 21082 = $89,190 Mil.
Gross Profit was 15725 + 15258 + 14661 + 14110 = $59,754 Mil.
Total Current Assets was $53,769 Mil.
Total Assets was $176,440 Mil.
Property, Plant and Equipment(Net PPE) was $18,632 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,491 Mil.
Selling, General, & Admin. Expense(SGA) was $23,393 Mil.
Total Current Liabilities was $38,721 Mil.
Long-Term Debt & Capital Lease Obligation was $30,310 Mil.
Net Income was 6278 + 6197 + 1738 + 3554 = $17,767 Mil.
Non Operating Income was 432 + 829 + -2496 + -1406 = $-2,641 Mil.
Cash Flow from Operations was 5314 + 4074 + 8343 + 8383 = $26,114 Mil.
Accounts Receivable was $14,645 Mil.
Revenue was 18336 + 20691 + 20747 + 20729 = $80,503 Mil.
Gross Profit was 11757 + 13629 + 13613 + 13862 = $52,861 Mil.
Total Current Assets was $45,892 Mil.
Total Assets was $158,380 Mil.
Property, Plant and Equipment(Net PPE) was $17,598 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,016 Mil.
Selling, General, & Admin. Expense(SGA) was $21,609 Mil.
Total Current Liabilities was $36,772 Mil.
Long-Term Debt & Capital Lease Obligation was $25,062 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(14871 / 89190) / (14645 / 80503)
=0.16673394 / 0.18191869
=0.9165

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)
=(52861 / 80503) / (59754 / 89190)
=0.65663391 / 0.669963
=0.9801

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 - (53769 + 18632) / 176440) / (1 - (45892 + 17598) / 158380)
=0.58965654 / 0.59912868
=0.9842

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
=89190 / 80503
=1.1079

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))
=(7016 / (7016 + 17598)) / (7491 / (7491 + 18632))
=0.28504103 / 0.28675879
=0.994

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)
=(23393 / 89190) / (21609 / 80503)
=0.26228277 / 0.26842478
=0.9771

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)
=((30310 + 38721) / 176440) / ((25062 + 36772) / 158380)
=0.39124348 / 0.39041546
=1.0021

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
=(17767 - -2641 - 26114) / 176440
=-0.0323

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 -2.63 suggests that the company is unlikely to be a manipulator.


Johnson & Johnson Beneish M-Score Related Terms

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Johnson & Johnson Business Description

Johnson & Johnson logo
Industry
Healthcare » Drug Manufacturers NAICS : 325412 SIC : 2834
Address
One Johnson and Johnson Plaza, New Brunswick, NJ, USA, 08933
Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. Geographically, just over half of total sales are generated in the United States.
Executives
Weinberger Mark A director METLIFE, INC. 200 PARK AVENUE NEW YORK NY 10166
Hewson Marillyn A director C/O CARPENTER TECHNOLOGY CORPORATION PO BOX 14662 READING PA 19612-4662
Washington A. Eugene director ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Wengel Kathryn E officer: EVP, Chief GSC Officer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Mcevoy Ashley officer: EVP, WW Chair, Medical Devices JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Perez William D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: PEREZ WILLIAM D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Mongon Thibaut officer: Exec VP, WW Chair, Consumer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Stoffels Paulus officer: Vice Chair, Exec Committee ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Ullmann Michael H officer: Exec VP, General Counsel JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Fasolo Peter officer: Exec VP, Chief HR Officer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Wolk Joseph J officer: Exec VP, CFO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Taubert Jennifer L officer: EVP, WW Chair, Pharmaceuticals JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Sneed Michael E officer: EVP, Global Corp Aff & COO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Decker Robert J officer: Controller, CAO ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Gorsky Alex director, officer: Chairman, CEO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933

Johnson & Johnson Headlines

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