Johnson Beneish M Score

JNJ
 Stock
  

USD 179.52  2.01  1.13%   

This module uses fundamental data of Johnson Johnson to approximate the value of its Beneish M Score. Johnson Johnson M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please see Johnson Johnson Piotroski F Score and Johnson Johnson Altman Z Score analysis.
  
Refresh
The current Total Debt is estimated to increase to about 36 B. The current Debt Current is estimated to increase to about 4 B. Johnson Johnson Receivables Turnover is increasing as compared to previous years. The last year's value of Receivables Turnover was reported at 6.52. The current Inventory Turnover is estimated to increase to 3.17, while Return on Investment is projected to decrease to 22.01.
At this time, it appears that Johnson Johnson is an unlikely manipulator. The earnings manipulation may begin if Johnson Johnson's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Johnson Johnson executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Johnson Johnson's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.45
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.04Focus
Asset Quality1.15Focus
Expense Coverage1.03Focus
Gross Margin Strengs1.04Focus
Accruals Factor1.03Focus
Depreciation Resistance1.05Focus
Net Sales Growth0.96Focus
Financial Leverage Condition1.03Focus

Johnson Johnson Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Johnson Johnson's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues89.6 B93.8 B
Sufficiently Down
Increasing
Slightly volatile
Selling General and Administrative Expense24.3 B24.7 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations23.4 B23.4 B
Slightly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion6.9 B7.4 B
Significantly Down
Increasing
Slightly volatile
Total Assets178.6 B182 B
Fairly Down
Increasing
Slightly volatile
Investments9.3 B17.1 B
Way Down
Decreasing
Very volatile
Investments Current9.3 B17.1 B
Way Down
Decreasing
Very volatile
Property Plant and Equipment Net18.9 B19 B
Slightly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables15.1 B15.3 B
Slightly Down
Increasing
Slightly volatile
Total Liabilities108 B108 B
Slightly Down
Increasing
Slightly volatile
Current Assets54.8 B61 B
Moderately Down
Decreasing
Very volatile
Assets Non Current123.8 B121 B
Fairly Up
Increasing
Slightly volatile
Current Liabilities39.9 B45.2 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current68.1 B62.8 B
Significantly Up
Increasing
Slightly volatile
Total Debt36 B33.8 B
Notably Up
Increasing
Slightly volatile
Debt CurrentB3.8 B
Notably Up
Decreasing
Slightly volatile
Debt Non Current31.9 B30 B
Notably Up
Increasing
Slightly volatile
Operating Income21.9 B23.4 B
Notably Down
Increasing
Slightly volatile
Gross Margin0.710.682
Sufficiently Up
Decreasing
Very volatile

Johnson Johnson Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Johnson Johnson's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Johnson Johnson in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Johnson Johnson's degree of accounting gimmicks and manipulations.

About Johnson Johnson Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

38.61 Billion

Share
Johnson Johnson Operating Expenses is increasing as compared to previous years. The last year's value of Operating Expenses was reported at 40.52 Billion

About Johnson Johnson Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Johnson Johnson's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Johnson Johnson using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Johnson Johnson based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Johnson Johnson researches and develops, manufactures, and sells various products in the healthcare field worldwide. Johnson Johnson was founded in 1886 and is based in New Brunswick, New Jersey. Johnson Johnson operates under Drug ManufacturersGeneral classification in the United States and is traded on New York Stock Exchange. It employs 144000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Johnson Johnson without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Aroon Oscillator Now

   

Aroon Oscillator

Analyze current equity momentum using Aroon Oscillator and other momentum ratios
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Johnson Johnson using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please see Johnson Johnson Piotroski F Score and Johnson Johnson Altman Z Score analysis. Note that the Johnson Johnson information on this page should be used as a complementary analysis to other Johnson Johnson's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Complementary Tools for Johnson Stock analysis

When running Johnson Johnson price analysis, check to measure Johnson Johnson's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Johnson Johnson is operating at the current time. Most of Johnson Johnson's value examination focuses on studying past and present price action to predict the probability of Johnson Johnson's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Johnson Johnson's price. Additionally, you may evaluate how the addition of Johnson Johnson to your portfolios can decrease your overall portfolio volatility.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Is Johnson Johnson's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Johnson Johnson. If investors know Johnson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Johnson Johnson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.17
Market Capitalization
472.4 B
Quarterly Revenue Growth YOY
0.05
Return On Assets
0.0896
Return On Equity
0.28
The market value of Johnson Johnson is measured differently than its book value, which is the value of Johnson that is recorded on the company's balance sheet. Investors also form their own opinion of Johnson Johnson's value that differs from its market value or its book value, called intrinsic value, which is Johnson Johnson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Johnson Johnson's market value can be influenced by many factors that don't directly affect Johnson Johnson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Johnson Johnson's value and its price as these two are different measures arrived at by different means. Investors typically determine Johnson Johnson value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Johnson Johnson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.