Johnson & Johnson (XBUL:JNJ) Beneish M-Score : -2.62 (As of Mar. 27, 2025)

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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:

XBUL: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.

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Johnson & Johnson Beneish M-Score Chart

Johnson & Johnson Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-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.

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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 * 0.936

0.528 * 0.9964

0.404 * 1.0245

0.892 * 1.043

0.115 * 1.0376

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0521

4.679 * -0.023625

0.327 * 1.0439

-2.62

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was лв34,288 Mil.
Revenue was 40796.782 + 40708.014 + 40664.536 + 38737.015 = лв160,906 Mil.
Gross Profit was 27883.839 + 28093.983 + 28220.793 + 26941.818 = лв111,140 Mil.
Total Current Assets was лв101,255 Mil.
Total Assets was лв326,273 Mil.
Property, Plant and Equipment(Net PPE) was лв37,170 Mil.
Depreciation, Depletion and Amortization(DDA) was лв13,295 Mil.
Selling, General, & Admin. Expense(SGA) was лв39,980 Mil.
Total Current Liabilities was лв91,161 Mil.
Long-Term Debt & Capital Lease Obligation was лв55,527 Mil.
Net Income was 6215.531 + 4880.397 + 8489.064 + 5896.693 = лв25,482 Mil.
Non Operating Income was -106.883 + -3697.435 + -1958.318 + -5007.207 = лв-10,770 Mil.
Cash Flow from Operations was 12650.263 + 14479.959 + 10204.63 + 6624.948 = лв43,960 Mil.

Total Receivables was лв35,121 Mil.
Revenue was 38758.754 + 38679.045 + 38983.39 + 37851.153 = лв154,272 Mil.
Gross Profit was 26443.633 + 26711.747 + 27276.96 + 25737.117 = лв106,169 Mil.
Total Current Assets was лв96,910 Mil.
Total Assets was лв303,545 Mil.
Property, Plant and Equipment(Net PPE) was лв36,047 Mil.
Depreciation, Depletion and Amortization(DDA) was лв13,561 Mil.
Selling, General, & Admin. Expense(SGA) was лв36,434 Mil.
Total Current Liabilities was лв83,844 Mil.
Long-Term Debt & Capital Lease Obligation was лв46,886 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)
	=	(34287.775 / 160906.347)	/	(35121.101 / 154272.342)
	=	0.213092	/	0.227656
	=	0.936

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)
	=	(106169.457 / 154272.342)	/	(111140.433 / 160906.347)
	=	0.688195	/	0.690715
	=	0.9964

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 - (101254.641 + 37169.998) / 326272.804)	/	(1 - (96910.472 + 36046.819) / 303544.722)
	=	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
	=	160906.347	/	154272.342
	=	1.043

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))
	=	(13561.488 / (13561.488 + 36046.819))	/	(13295.187 / (13295.187 + 37169.998))
	=	0.273371	/	0.263453
	=	1.0376

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)
	=	(39979.759 / 160906.347)	/	(36434.497 / 154272.342)
	=	0.248466	/	0.23617
	=	1.0521

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)
	=	((55526.739 + 91160.517) / 326272.804)	/	((46885.502 + 83843.546) / 303544.722)
	=	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
	=	(25481.685 - -10769.843	-	43959.8)	/	326272.804
	=	-0.023625

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 -2.62 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

Industry

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JNJ:USA JNJ:Peru JNJ:Mexico JNJ_KZ:Kazakhstan 1JNJ:Italy JNJd:UK 0R34:UK JNJ0:Germany JNJ:Germany JNJ:Germany JNJ:Germany JNJ:Germany JNJ:Canada JNJB34:Brazil JNJ:Austria JNJ:Argentina

Address

One Johnson & 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.