Switch to:
Natures Sunshine Products Inc (NAS:NATR)
Beneish M-Score
-2.76 (As of Today)

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

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Natures Sunshine Products Inc has a M-score of -2.76 suggests that the company is not a manipulator.

NATR' s 10-Year Beneish M-Score Range
Min: -3.4   Max: -1.66
Current: -2.76

-3.4
-1.66

During the past 13 years, the highest Beneish M-Score of Natures Sunshine Products Inc was -1.66. The lowest was -3.40. And the median was -2.57.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Natures Sunshine Products Inc 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 * 0.7277+0.528 * 1.011+0.404 * 1.0654+0.892 * 0.9664+0.115 * 1.6958
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0105+4.679 * -0.0392-0.327 * 0.7744
=-2.76

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $8.1 Mil.
Revenue was 83.878 + 81.413 + 94.876 + 94.325 = $354.5 Mil.
Gross Profit was 61.997 + 59.622 + 71.561 + 70.953 = $264.1 Mil.
Total Current Assets was $117.2 Mil.
Total Assets was $198.3 Mil.
Property, Plant and Equipment(Net PPE) was $56.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.2 Mil.
Selling, General & Admin. Expense(SGA) was $246.9 Mil.
Total Current Liabilities was $55.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 5.667 + -3.897 + 1.017 + 3.234 = $6.0 Mil.
Non Operating Income was -0.318 + 2.997 + -1.279 + -0.378 = $1.0 Mil.
Cash Flow from Operations was -0.926 + 0.641 + 5.403 + 7.648 = $12.8 Mil.
Accounts Receivable was $11.5 Mil.
Revenue was 93.467 + 87.214 + 92.458 + 93.675 = $366.8 Mil.
Gross Profit was 70.886 + 65.6 + 68.803 + 71.045 = $276.3 Mil.
Total Current Assets was $145.1 Mil.
Total Assets was $203.7 Mil.
Property, Plant and Equipment(Net PPE) was $35.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General & Admin. Expense(SGA) was $252.9 Mil.
Total Current Liabilities was $63.3 Mil.
Long-Term Debt was $10.0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(8.086 / 354.492) / (11.498 / 366.814)
=0.02281011 / 0.03134559
=0.7277

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)
=(59.622 / 366.814) / (61.997 / 354.492)
=0.75333548 / 0.74510285
=1.011

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (117.202 + 56.939) / 198.297) / (1 - (145.111 + 35.283) / 203.683)
=0.12181727 / 0.11433944
=1.0654

4. SGI = Sales Growth Index

Ratio of sales 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
=354.492 / 366.814
=0.9664

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(4.615 / (4.615 + 35.283)) / (4.168 / (4.168 + 56.939))
=0.11566996 / 0.06820822
=1.6958

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(246.927 / 354.492) / (252.852 / 366.814)
=0.69656579 / 0.68931938
=1.0105

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0 + 55.287) / 198.297) / ((10 + 63.331) / 203.683)
=0.27880906 / 0.36002514
=0.7744

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
=(6.021 - 1.022 - 12.766) / 198.297
=-0.0392

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Natures Sunshine Products Inc has a M-score of -2.76 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Natures Sunshine Products Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.19660.74851.14841.42220.83890.7011.57860.97521.05480.6658
GMI 1.00350.9971.00480.99871.00961.07360.98411.01460.99431.0004
AQI 0.86621.00161.59180.92951.05450.96050.90980.73170.89431.2925
SGI 1.06231.031.01221.0180.91661.02281.05110.99911.00640.9906
DEPI 0.95110.88020.91541.21171.12661.00670.90911.16131.04031.5477
SGAI 0.48981.05612.070.9930.96340.93360.98510.93071.05061.0167
LVGI 1.32311.11230.88561.0190.91640.94051.17040.68611.1990.7476
TATA -0.09-0.1195-0.1278-0.01040.0268-0.12450.0752-0.008-0.0659-0.0223
M-score -2.74-3.30-2.85-2.13-2.50-3.26-1.66-2.51-2.85-2.64

Natures Sunshine Products Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.97520.75490.85991.07921.05481.16151.00130.8490.670.7277
GMI 1.01460.9950.97570.95380.99430.9910.99370.98961.00051.011
AQI 0.73170.74510.71670.78460.89431.10841.21061.11071.29251.0654
SGI 0.99911.00881.00741.01041.00640.98850.98840.99170.98450.9664
DEPI 1.16131.16741.08121.01251.04031.10371.28531.37031.54771.6958
SGAI 0.93070.96651.00661.10451.05061.0431.03751.05051.01741.0105
LVGI 0.68610.82010.85941.10791.1991.1311.09560.7450.74760.7744
TATA -0.008-0.0591-0.065-0.0671-0.0659-0.0021-0.0077-0.0146-0.0266-0.0392
M-score -2.51-3.00-2.98-2.88-2.85-2.35-2.45-2.54-2.66-2.76
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK