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JPMorgan Chase Beneish M-Score

: -2.43 (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 -2.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JPM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24   Med: -2.36   Max: 4.26
Current: -2.43

During the past 13 years, the highest Beneish M-Score of JPMorgan Chase was 4.26. The lowest was -3.24. And the median was -2.36.


JPMorgan Chase Beneish M-Score Historical Data

The historical data trend for JPMorgan Chase'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.

JPMorgan Chase Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.15 -2.36 -2.38 -2.08 -2.40

JPMorgan Chase Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -1.62 -1.90 -2.40 -2.22 -2.43

Competitive Comparison

For the Banks - Diversified subindustry, JPMorgan Chase'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.

   

JPMorgan Chase Beneish M-Score Distribution

For the Banks industry and Financial Services sector, JPMorgan Chase's Beneish M-Score distribution charts can be found below:

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



JPMorgan Chase 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 JPMorgan Chase 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 * 1.1698+0.528 * 1+0.404 * 1.0275+0.892 * 0.9926+0.115 * 1.0935
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0871+4.679 * -0.0243-0.327 * 0.9692
=-2.43

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $145,442 Mil.
Revenue was 30709 + 30718 + 29288 + 29661 = $120,376 Mil.
Gross Profit was 30709 + 30718 + 29288 + 29661 = $120,376 Mil.
Total Current Assets was $1,021,609 Mil.
Total Assets was $3,841,314 Mil.
Property, Plant and Equipment(Net PPE) was $26,770 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,468 Mil.
Selling, General, & Admin. Expense(SGA) was $42,700 Mil.
Total Current Liabilities was $424,165 Mil.
Long-Term Debt & Capital Lease Obligation was $288,212 Mil.
Net Income was 8649 + 8282 + 10399 + 11687 = $39,017 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 66018 + -41917 + 85095 + 23331 = $132,527 Mil.
Total Receivables was $125,253 Mil.
Revenue was 30486 + 32250 + 29377 + 29158 = $121,271 Mil.
Gross Profit was 30486 + 32250 + 29377 + 29158 = $121,271 Mil.
Total Current Assets was $1,050,636 Mil.
Total Assets was $3,684,256 Mil.
Property, Plant and Equipment(Net PPE) was $26,631 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,341 Mil.
Selling, General, & Admin. Expense(SGA) was $39,571 Mil.
Total Current Liabilities was $405,065 Mil.
Long-Term Debt & Capital Lease Obligation was $299,926 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)
=(145442 / 120376) / (125253 / 121271)
=1.20823088 / 1.03283555
=1.1698

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)
=(121271 / 121271) / (120376 / 120376)
=1 / 1
=1

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 - (1021609 + 26770) / 3841314) / (1 - (1050636 + 26631) / 3684256)
=0.72707803 / 0.70760257
=1.0275

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
=120376 / 121271
=0.9926

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))
=(8341 / (8341 + 26631)) / (7468 / (7468 + 26770))
=0.23850509 / 0.21812022
=1.0935

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)
=(42700 / 120376) / (39571 / 121271)
=0.35472187 / 0.32630225
=1.0871

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)
=((288212 + 424165) / 3841314) / ((299926 + 405065) / 3684256)
=0.18545138 / 0.19135234
=0.9692

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
=(39017 - 0 - 132527) / 3841314
=-0.0243

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.

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


JPMorgan Chase Beneish M-Score Related Terms

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JPMorgan Chase Business Description

JPMorgan Chase logo
Address
383 Madison Avenue, New York, NY, USA, 10179
JPMorgan Chase is one of the largest and most complex financial institutions in the United States, with nearly $4 trillion in assets. It is organized into four major segments--consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. JPMorgan operates, and is subject to regulation, in multiple countries.
Executives
Barnum Jeremy officer: Chief Financial Officer 383 MADISON AVENUE NEW YORK NY 10179-0001
Korablina Elena A officer: Corporate Controller 383 MADISON AVENUE NEW YORK NY 10179-0001
Novakovic Phebe N director
Rometty Virginia M director IBM CORPORATION 294 ROUTE 100 SOMERS NY 10589
Piepszak Jennifer officer: Chief Financial Officer JPMORGAN CHASE & CO. 383 MADISON AVENUE NEW YORK NY 10179
Combs Todd A. director JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Hobson Mellody L director C/O TELLABS 1415 W DIEHL RD NAPERVILLE IL 60563
Leopold Robin officer: Head of Human Resources JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Scher Peter officer: Executive Vice President JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Beer Lori A officer: Chief Information Officer JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Giles Nicole officer: Corporate Controller JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Friedman Stacey officer: General Counsel JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Neal Michael A director
Bacon Ashley officer: Chief Risk Officer JPMORGAN CHASE & CO. 383 MADISON AVENUE NEW YORK NY 10179
Lake Marianne officer: Chief Financial Officer JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017

JPMorgan Chase Headlines

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